According to Chris van Biljon, CEO of the EBI, and Jacky Li, EBI’s liaison of international business relationship, South Africans are in a prime position to take hold of the numerous financial opportunities on offer if they take hands with their Chinese counterparts.
Li, a businessman who has been in South Africa for decades, said he has has already been talking with manufacturers in China who are willing to forge South African partnerships.
“China has all goods to sell. Problem is, if Chinese manufacturers wish to invest into South Africa they do face a certain obstacles and challenges, as they do not know the local market,” said Li.
“This is why I believe there is a huge opportunity through partnership to empower SA’s economy and, at the same time, deal with high unemployment.”
In light of SA’s trade relations with China, Li believes he has come up with a viable and promising business plan that, with the backing of the EBI, can unlock incredible opportunities for both labour markets.
“The concept entails linking up Chinese manufacturers with South African marketers.
“In other words, what we are suggesting is that we are looking for agents in SA who will identify a market in which to sell goods from China,” he explained. “Once a viable marketing plan is on the table, we connect the South African marketing agent or agents with the right manufacturers in China, who will then import the goods.
“The reason for such a proposal is because South Africans know the SA market and how to market such goods.
“It is a more cost effective alternative for China, as they do not need to send someone from overseas, along with his family, to be established in South Africa and then to learn the SA market from scratch.
“What will happen is that these manufacturers in China will even set up showrooms in South Africa in order to showcase the products which will aid the marketing agent to sell the goods.
“The procurement of goods will be done online to streamline transactions.
“What is proposed is that before goods are manufactured for South Africa’s market, only a percentage of the total sale is paid up front, as a non-refundable deposit and not 100 per cent as you will normally expect.”
Li said the EBI will act as a middle party between China and South Africa when it comes to overseeing forging of business partnerships, which will ensure a smooth operation.
“We are not talking here about trade, but China providing the goods to someone or a group of people in South Africa who will then market the goods for overseas companies and factories. This is the basis for a business partnership.
“This person or group of people in South Africa will naturally become like an employer for the overseas manufacturer.
“The proposal is also that the marketing agent be sent to China to learn all about the goods that will be marketed in South Africa.”
Li said with such a partnership the possibilities are endless.
“I also envision, and I know this is a very real possibility, that once the goods from China sell well in South Africa, that factories can be set up in SA along with depots that act like factory stores.
“The key here is that local labour will be deployed in the factories and depots, which will deal with unemployment.”
Li said he has even envisioned setting up depots close to townships, as this is a buying market that is hardly been utilised.
“This concept from a SA point of view is still in the beginning phase, but a lot of groundwork has already been done overseas. There are many Chinese manufacturers who are willing to come on board.
“This business partnership, facilitated by the EBI also falls in line with Ekurhuleni’s Aerotropolis vision.”
Li said that, in the long run, this partnership can work the other way around as well, with those in China identifying SA products that they can sell into the China market.
Van Biljon said that he has already received support on a political level for such an initiative.
He so believes in this platform to build partnerships between SA and China that he will also be travelling to China to get the project up and running.
