SA important gateway to Africa: business

"As much as Hong Kong's economy is so intertwined to your geographical and strategic link with mainland China, so is our existence as part of the African continent," outgoing Business Unity South Africa (BUSA) CEO, Jerry Vilakazi, said on Wednesday.

He was addressing a business forum in Hong Kong hosted by the Consuls General of South Africa, Nigeria and Angola.

BUSA called for a shift from the extraction of raw material for export to China, to more investment into productive capacity as well as long term value add in Africa.

"The solution to Africa's high levels of unemployment and poverty lies in us finding and agreeing on this new way of doing business through investing in value adding enterprises on the continent," said Vilakazi.

Strong ties

The business relationship between Hong Kong and South Africa is already strong, with South Africa being Hong Kong's largest import market on the continent. In 2010, imports comprising mainly telecommunication equipment and parts, computers, toys, games and sporting goods surpassed US$700 million.

Exports from South Africa, mainly silver and platinum, pearls, precious and semi-precious stones, and fruit and nuts exceeded US$600 million.

Vilakazi said he expected the number of South Africans visiting Hong Kong to increase in the coming years as South Africans continue to work closely with Hong Kong business leaders.

Promoting capital

The Hong Kong Exchange and BUSA have been working together to promote capital raising for South African companies, particularly in the mining sector with the Exchange having adopted new rules for South African mineral companies looking at listing in Hong Kong to raise capital.

The rules include the creation of a platform for natural resource companies with a meaningful discovery to raise development capital provided they disclose their assets under recognised international standards, with the endorsement of independent experts.

BUSA said some of the South African companies with representatives in Hong Kong, who participated in today's celebrations included Sasol, Standard Bank, SAA and Barloworld.