Hoekom is sekere lande en veral groot moonthede, soos China geinteresseerd in Suid-Afrika? Kyk dieper. Volg hulle dieselfde voetspore as die Britse heersers of is daar ‘n moontlikheid dat dit “gesamentlik” kan wees? Aan wie behoort Shanduka? – Ramaphosa Dis nie net goud nie, dis ook steenkool, platinum en ander skaars elemente wat ook hier in Suid-Afrika voorkom wat “gegryp” word. Heelwat van hierdie minerale word onder die vaandel van “minerale rykdom” op plase geneem om onteien te word – wettig, daarom word dit in wette ingeskryf asook die grondwet. Easy to go to farms, attack, torture and kill farmers and even their workers, most of the time it is said in the news that those attacks/killings specific on farmers, are normal crime while it is not the case.
2013 – Chinese are coming to Africa in ever greater numbers and finding it a comfortable place to visit, work in and trade. An estimated 1m are now resident in Africa, up from a few thousand a decade ago, and more keep arriving. Chinese are the fourth-most-numerous visitors to South Africa. Among them will be China’s new president, Xi Jinping, who is also going to Tanzania and the Democratic Republic of Congo on his first foreign outing as leader.
The full-service branch in Crown Mines, Johannesburg, will be manned by staff who are fluent in both Chinese and English to service Chinese customers and everyone else.
Standard Bank said it already had more than 100 Chinese-speaking relationship managers, bankers, advisers and traders with trading floors. It said it had targeted Crown Mines as the area was home to China Mall – a busy shopping centre that attracts traders from Zimbabwe, Botswana, Zambia and other neighbouring countries.
He said estimates suggested that between 350000 and 500000 Chinese live in South Africa, largely in Johannesburg, Pretoria and Durban.
- We are an African bank – our strategic focus and expertise in resources on the continent allow our clients to enter Africa with confidence.
- We have unique expertise in African risk – we evaluate, originate and distribute market risk across a broad regional and international network. We have established and complementary relationships with our partners in Europe, Asia and the US for risk participation.
- We have a broad client base – through our extensive network in Africa and strategic partnerships with banks in non-presence countries, we service a broad international client base and respond promptly when evaluating opportunities and establishing focused deal teams.
- We have an established sector focus – with a thorough understanding of the needs of financial institutions, especially those with interests in Africa.
- We trade 24 hours a day – we offer around-the-clock trading in area across fixed income trading to derivatives, foreign exchange and bonds through our offices in Hong Kong, Beijing, Dubai, Johannesburg, London and New York.
- We have access to assets across Africa – especially assets not generally available through other sources.
- We offer a dedicated service–every client has a dedicated relationship manager who provides a complete service by drawing on expertise from all our product areas.
We operate in 20 countries in Africa, including South Africa, as well as in other key markets globally, with fit for purpose points of reference in developed and developing pools of capital. Our global connections provide us with increasing opportunities to drive Africa’s growth.
Standard Bank’s extensive investment in building the world’s most advanced trade platform between Africa and China saw the bank take 61 clients from nine African countries to the inaugural CIIE, assisting them secure export contracts with Chinese receivers at the Expo.
Specific features of Standard Bank’s Africa-China trade corridor include:
- An entirely Chinese-speaking Standard Bank branch at Crown Mines in Johannesburg. “Located in the heart of Dragon City, the branch helps Chinese importers and exporters access South African business opportunities, while also providing reach into Lesotho, Swaziland, Namibia, Botswana, Zimbabwe and Mozambique,” says Mr. Barnard
- Africa China Banking Centers (ACBCs), already operational in South Africa, are one-stop-shops for Chinese businesses and individuals seeking to transact in, across and out of Africa. Manned by Chinese-speaking bankers, ACBCs are one-stop-banking shops for personal and business banking clients as well as for Chinese importers and exporters. ACBCs provide seamless consultation and advisory services via telephone, online or email, and now also via WeChat, linking African and Chinese clients with China’s highly networked digital banking and customer knowledge systems. More ACBCs are currently rolling out in Nigeria with other African hubs to follow. “ACBCs offer Chinese and African clients a business-to-business networking and personal advisory service, daily accessing and unlocking new Africa-China trade opportunities,” adds Mr. Barnard.
- Hosting ICBC’s ‘I Go Global’ joint credit card reward schemes for Chinese travelers in South Africa, Kenya and Ghana. Since the initial launch of the scheme in South Africa in November 2017, ICBC has provided transnational services to nearly 100 000 credit card holders in Africa. The joint Standard Bank – ICBC credit card reward scheme is currently rolling out to other African markets.
- The signing of a US$ 500 million loan facility with the China Development Bank at the recently held BRICS Summit held in Johannesburg in July 2018. Over the next seven years the facility is designed to support the growth of Standard Bank’s African SME clients, many of whom are looking to export to China.
In 2007, China’s largest bank, the Industrial and Commercial Bank of China (ICBC), purchased a 20percent stake in Standard Bank for $5.5billion. There is also a high demand for Chinese supplies in South Africa with about R70bn spent on Chinese imports from January to June 2013, according to the Department of Trade and Industry.
“This year marks two meaningful anniversaries for South Africa’s business community and Standard Bank: the ten-year mark of Standard Bank and ICBC’s strategic co-operation, and the 20th anniversary of Sino-South African diplomatic ties,’’ Ngundze said.
FINANCIAL IMPLICATIONS AND EXPENDITURES INTO AFRICA
Standard Bank and ICBC to raise R10 billion to support SA power generation
Over the next five years, Standard Bank will assist its strategic partner, the Industrial and Commercial Bank of China (ICBC) to raise R10 billion to support the development of South Africa’s power generation infrastructure, said Standard Bank Group Chief Executive Sim Tshabalala.
This follows the signing of a collaboration agreement between ICBC and Standard Bank in the presence of President Xi Jinping of China and South Africa’s President Jacob Zuma at the FOCAC Heads of Summit in Sandton, Johannesburg.
It is anticipated that there will be significant development in the South African economy – particularly in the power and infrastructure sectors of the South African economy – over the next 5 years. Standard Bank and ICBC want to participate in this development with a view to ensuring that the South African economy goes from strength-to-strength.
Speaking on the side lines of the FOCAC Summit, Mr Tshabalala announced that the ICBC-Standard Bank partnership will jointly support up to 100 new infrastructure and industrial projects across Africa, ranging from resources and transportation, to electricity and telecommunications, to manufacturing and industrial parks.
Standard Bank and ICBC have worked together on a wide range of initiatives, all with a strong focus on supporting infrastructure investment and industrial development in Africa, and on growing trade and investment flows between China and Africa.
“Strategic cooperation between ICBC and Standard Bank has enabled us to arrange more than $7 billion in loans to African countries and to complete over $14 billion of transactions that have brought equity and debt capital from Chinese corporations and financial institutions to Africa,” said Mr Tshabalala.
A few recent examples of deals that have been made possible by this partnership include:
- Standard Bank, ICBC and China Development Bank are co-financing the Kabompo hydro project in Zambia, where Sinohydro has been appointed as the civil engineering contractor.
- Standard Bank and ICBC are joint lead arrangers, underwriters and book runners of US$1 billion syndicated loan facility to Angolan state oil company Sonangol.
- ICBC and Standard Bank have jointly provided Hisense with a R1.1 billion working capital facility – the largest working capital funding package provided to any Chinese entity secured by an ICBC guarantee.
- Standard Bank and ICBC have jointly re-financed the debt of Samancor Chrome by way of two corporate facilities amounting to R3 billion – this collaboration is the largest single distribution that Standard Bank has undertaken with the ICBC to date.
“While much of our joint work so far has been in corporate and investment banking, ICBC and Standard Bank are increasingly exploring opportunities to expand cooperation into new areas of business.
In retail banking, we are working together to introduce new solutions to facilitate personal remittances between South Africa and China. This will enable online person-to-person and business-to-business direct international payments and will be managed by dedicated specialist teams, improving convenience and reducing costs for our customers.”
Turning to China, Mr Tshabalala said:
“The rise of China to become the industrial powerhouse of the world has been the great economic miracle of the last 30 years. With China’s assistance, Africa’s economic take-off is now well underway. It’s a great time to be investing and working in Africa. With our deep Chinese and African roots, local knowledge and global reach, ICBC and Standard Bank are here to do everything we can to ensure that your companies succeed.”
Over the past 15 years, Africa has been called both the hopeless continent and the rising continent. “More recently, however, it has been recognised for what it really is: A continent that is at once very dynamic and very diverse – a continent of over 50 countries, each with a distinctive set of challenges and opportunities. For this reason, investors and entrepreneurs in Africa need to build up strong local relationships and to develop detailed local knowledge,” said Mr Tshabalala.
While others continued to think of Africa in terms of clichés and generalisations, China has been quietly building solid diplomatic and commercial relationships with African countries since the turn of the century.
“In many cases, Chinese investment and trade have played a crucial role in supporting economic growth and infrastructure development.
Now that several African countries- for example, Ethiopia and Mozambique – are among the fastest-growing in the world, China is very well positioned to benefit from this remarkable growth and to further support and encourage it,” said Mr Tshabalala.
He said that ICBC had identified Africa as an important growth market long before it was fashionable for global banks to do so. “ICBC recognised that its own expansion into the continent would be best served by creating a strategic partnership with a large and well-established African financial services group. So the largest bank in the world teamed up with the largest bank in Africa in 2009, when ICBC bought a 20% stake in the Standard Bank Group, becoming our single largest shareholder.”
The signing of agreements was in 2010 by the Chinese Vice-President Xi Jinping and South African Deputy President Kgalema Motlanthe meet for talks at Tuynhuys in Cape Town
The Chinese delegation and South Africa are expected on Wednesday to sign a bilateral memorandum of understanding for co-operation in geology an d mining, and a letter of intent related to South Africa’s energy sector, among others. Standard Bank, the largest on the continent, is 20 percent owned by the Industrial and Commercial Bank of China, in an arrangement analysts felt could foster increased Chinese investment in the continent but has yet to yield big dividends.
Chinese Investment in South Africa.
As a Hong Kong listed company and as one example, there are many others but the Chinese people are interested in gold and coal as well – they all need coal for their own usage.
Taung Gold International Limited is acutely aware of the significance of Chinese investment in South Africa. Chinese investors have been steadily building their direct and indirect investments in South Africa during the last decade. And it is not just in mining and minerals.
The company’s flagship projects are held in South Africa by a, not wholly-owned subsidiary of Taung Gold International Limited, Taung Gold (Proprietary) Limited. The South African entity is fully compliant in terms of South African legislation, including that relating to Black Economic Empowerment (BEE). The company is fully BEE compliant with its BEE partner (Sephaku Gold Holdings) owning 24.02% with the Taung Gold Employee Participation Plan owning a further 1.98% of the company.
First lets take a look at the mining sector:
#1 – South Africa currently ranks second in China’s mining investment into Africa. Amongst the more significant investments was the $227 million acquisition by the Jinchuan Group and the China-Africa Development Fund of a 45% stake in Wesizwe Platinum, a junior company in the preliminary stages of establishing a mine. At the time of the acquisition the Chinese investors also helped raise a $650 million project finance facility develop Wesizwe’s Frischgewagde mine.
Wesizwe Platinum is a public company incorporated in the Republic of South Africa with its shares listed on the JSE Securities Exchange (JSE). Our intention is to enter into PGM mining in South Africa as the launch pad for growing into a significant multi-commodity mining company that sets new benchmarks for sustainable mining practices. The development of a new underground mine to access one of the last remaining sizeable and viable Merensky and Upper Group 2 (UG2) Chromitite layer PGM ore bodies is our flagship project. Located on the Western Limb of the Bushveld Complex, near the town of Rustenburg in the North West province, is the Bakubung Platinum Mine (BPM) site, home of our flagship project. We also hold a 17.1% interest in neighbouring Projects 1 and 3 of Maseve Investments 11 (Pty) Limited (Maseve), held through a subsidiary company, Africa Wide Mineral Prospecting and Exploration (Pty) Limited. Maseve is operated by Platinum Group Metals Limited (PTM) Canada.
Our business is mainly focused on the successful development of the BPM and its surrounding community of Ledig. With 17 000 residents, Ledig lies directly north of the mine. The project encompasses an underground mine that will comprise twin independent vertical shafts and a shorter third shaft. The main shaft will be for miners and materials, with a second shaft for ventilation. The third shaft is intended for support functions, added ventilation and as an escape route. The main shaft is intended to have a hoisting capacity of 250 000 tonnes of ore and 15 000 tonnes of waste per month. An initial 230 000 tons per month will be mined from the Merensky Reef, with 20 000 tpm coming from the secondary UG2 Reef. After the Merensky Reef is depleted (between 10 to 15 years from the start of production), the full 265 000 tpm will comprise UG2 ore only. The Merensky Reef and the UG2 ore will be mined through semi-mechanised or hybrid methods usin4g conventional methods on the face and mechanised ore-handling and development.
The China-Africa Development Fund (“CADFund”) is a fund which was set up in 2007 with the aim of supporting Chinese companies to develop cooperation with Africa and enter the African market. It is the first fund focused specially on investing in Africa with the biggest scale among PE funds. The Chinese government officially approved the establishment of the CADFund, with first-phase funding, USD 1 billion, provided by China Development Bank, which will eventually reach USD 5 billion.
CADFund is independently operated and based on market economy principles. Under a standardized corporate governance structure, CADFund will appoint a specialized team to manage CADFund. China Development Bank (“CDB”), the shareholder, has a great wealth of experience in project review and management and is backed up with sound expert resources. Having invested in five funds and three specialized fund management companies, the bank has developed sophisticated fund management and risk control systems. CDB has accumulated profound experience vis-à-vis investing in Africa through its “Going Global” initiative. CDB, by virtue of its overall resources and advantages, will provide a high level of professional support for CADFund.
CADFund is a pioneering move in the process of mutually beneficial cooperation between China and Africa. It remedied the gap under the traditional model of free aid and loans without increasing the debt burden to African countries, through the market-oriented operation to achieve sustained and healthy self-development. CADFund, as a thruster, will take its reference from the international PE investment fund mode under the direction of economic development of African countries. It will play a role in promoting partnership, providing guidance and support to more Chinese enterprises to develop direct investment, to promote market-oriented economic development, to improve the people’s livelihood for African regions by investment, fund advisory services and other means.
In 2011, Cyril Ramaphosa Foundation (then known as Shanduka Foundation) and Kagiso Trust noticed how similar their visions were, and this prompted a conversation about pooling resources to have an even greater impact on education transformation. The aim was to develop a project that used the topmost methodologies and followed the best practices from each organisation. Unsurprisingly, this resulted in a top-tier integrated, Whole School Development model that addresses infrastructure development, curriculum support, social welfare and leadership, implemented at a district level. We call it the Kagiso Shanduka Trust (KST).
#2 – In 2011, the China Investment Corporation (“CIC”) paid $243 million (R2 billion at the time) for a 25 % shareholding in Shanduka group. Shanduka Gold, has a 23.8% interest in Pan African Resources which in turn manages a gold operation near to Taung’s own Evander Project.
#3 – Other Chinese companies presently involved in South African mining include Zijin Mining, Minmetals, Jiquan Iron and Steel (“JISCO”), East Asia Metals and Sino Steel. Zijin is developing the Blue Ridge Mine and Sheba Mine in the north of South Africa. Sino Steel is involved in a joint venture with a parastatal (Lindev) to operate a chromium mine in the Limpopo Province and has invested in the development of another mine with manganese operator, Cemencor.
#4 China produces – 426 tonnes Gold annually.
For many years China has been the top producing nation, accounting for 13 percent of global mine production. See 4th image, chart attached.
Security: South Africa’s security threats remain a challenge.
Potential investors should not forget that the country still has a very challenging operating environment that presents a number of security threats to Chinese companies and their employees.
Crime: High rates of violent crime continue to receive extensive coverage in international media.
Socio-economic factors drive continued high levels of crime. These include income inequality, unemployment and destitution fuelled by a breakdown in social networks, and exacerbated by the prevalence of migrant labour and high rates of HIV/AIDS. These underlying causes mean that reducing levels of crime will remain challenging, and rates are unlikely to decline substantially over the coming years. The growing prevalence of registered and unregistered firearms also exacerbates the problem of violent crime. Studies have put the number of illegal firearms in South Africa at between 500,000 and 4m. (Join the dots)
See attached map – Crime Incidents and Unrest for year July 207 to July 2018.
Employment and importing workers: From an immigration law perspective, various work permits can be issued, all with different requirements. In essence, Chinese talent may be brought in as necessary to provide required skills.
BEE credentials. The principal regulatory challenge faced by Chinese businesses in South Africa is compliance with complex Broad-Based Black Economic Empowerment (B-BBEE) legislation resulting in further uncertainty, particularly among foreign-owned operations.
3rd image refers Chinese gold mining interests in South Africa.
Today, South Africa produces in the region of – 139.9 tonnes Gold annually.
Once the top gold-producer in the world by a wide margin, South Africa’s gold mines have been slowing every year since 2008, with the exception of 2013 when production rose by a few tonnes. The nation is still home to the world’s deepest gold mine, the Mponeng mine, extending 2.5 miles underground.
Now we can understand the reason behind interest of China in South Africa.
….Land for mining.
CRIME IN SOUTH AFRICA
the date is shown at right side lower corner beneath – Number of Incidents – as “Control Risks 2018”
China General Nuclear Power Corporation’s Husab uranium mine in Namibia. Source: Contractor’s camp by Namspace.net
The scale of China’s expansion in Africa is just a mind blowing. In less than 10 years since Chinese authorities called for mineral resources diversification globally, the number of major mining/mineral processing assets in Africa with China-headquartered companies interest, increased from only a handful in 2006 to more than one hundred and twenty in 2015 (Figure 2). And those are only assets in advanced stages of their development, i.e. the figures exclude early exploration and other greenfield projects.
Why has Africa became a priority destination for China? First and foremost, it’s the continent’s rich endowment of mineral resources with many world-class deposits discovered in recent years. Secondly its untapped mineral resources provides excellent greenfield development potential.
- South Africa produces 52% of world’s chromium, is the world leader in production of manganese and platinum group metals, controlling about 95% of global PGM reserves. It is also the biggest producer of ilmenite, second biggest producer of vanadium and in Top-5 of global rutile and zirconium producers. South Africa is also a renowned producer of gold and controls world’s largest in-situ gold reserves.
- Democratic Republic of the Congo (DRC) produces approximately 50% of global cobalt and hosts about half of global reserves. DRC is also in top-5 producers of copper, diamond and tantalum (second place).
- Botswana is the global leader in diamond production by value and in top-5 of other gemstones’ producers.
- Guinea is in top-5 of biggest bauxite producers, being the world leader in bauxite reserves.
- Zimbabwe is the fifth biggest producer of lithium and in top-5 of world’s largest PGM producers.
- Morocco is the second biggest producer of phosphates and controls 75% of global phosphate reserves.
- Mozambique is in the top-5 global producers of tantalum, ilmenite and zirconium.
- Rwanda is the leader in production of tantalum.
DEVELOPMENT IN AFRICA AND SOUTH AFRICA
MORE BACKGROUND …