Business Unity South Africa (Busa) has called on Chinese companies to shift their approach to doing business in Africa away from raw materials exports to China to the creation of productive capacity and value-adding enterprises.

“The solution to Africa’s high levels of unemployment and poverty, lies in us finding and agreeing on a new way of doing business through investing in value-adding enterprises in the continent,” said outgoing Busa CEO Jerry Vilakazi at a Business Forum in Hong Kong on Wednesday.

Last year, exports from South Africa to China exceeded $600-million, comprising mainly silver and platinum, fruit and nuts, pearls, precious and semi-precious stones.

On the other hand, South Africa imported about $700-million worth of goods including telecommunications equipment and parts, computers, toys, games and sporting goods.

Busa noted that the Chinese were considering facilitating imports for a range of South African products, and said that it was working closely with the government to give impetus to those and more initiatives.

He praised the acceptance of South Africa into the Bric (Brazil, Russia, India, and China) grouping, saying that it was a new chapter in the development of Africa as a whole. “As much as Hong Kong’s economy is so intertwined to China’s geographical and strategic link with mainland China, so is South Africa’s existence as part of the African continent,” said Vilakazi, emphasising South Africa’s importance as a gateway to Africa.

Busa has been working with the Hong Kong Exchange to promote capital raising for South African companies, especially those in the mining sector, and a platform had been developed for natural resource companies to raise development capital.

Over 70 000 South Africans visited Hong Kong last year and about 7 000 Hong Kong nationals visit South Africa on a yearly basis. “We expect this number to increase over the coming years as we continue to work closely with Hong Kong business leaders and the exchange to consolidate our position as an investment destination of choice for Hong Kong in Africa,” said Vilakazi.

Meanwhile, Busa also said that it endorsed the view recently expressed by the Brics that there was a strong case for the next International Monetary Fund MD to come from one of the emerging economies and announced its support for South African National Planning Minister Trevor Manuel, also the country’s former Finance Minister.

“The shift in the global balance of power means that the increasing role of developing countries in the world economy has to be acknowledged and needs to be increasingly recognised in global financial institutions,” Busa said a statement.

Manuel’s name has come up as a possible candidate to succeed Dominique Strauss-Khan, who resigned as IMF MD after being charged with attempted rape in US.