China will use its Africa Fund to encourage Chinese companies to invest in South Africa, President Hu Jintao told President Thabo Mbeki in Pretoria on Tuesday.
"We discussed this matter and looked at steps that must be taken to further intensify that cooperation in all areas -- trade, investment, human resource development, technology transfers ... ," Mbeki said.
South Africa considers China one of the country's most "critical and important" economic partners globally, he said after more than an hour of discussion with Hu.
China has become South Africa's second-largest import trading partner and eighth-largest export partner in the 10 years the two countries have had diplomatic relations.
In 2005, imports from China totalled R31,476-million and exports stood at R8,763-million.
"We agreed that both sides would keep dialogue at top level, increase their mutual political talk [and] deepen their business cooperation for a mutually win-win situation," said Hu.
While both leaders are happy with bilateral relations, there is room for improvement.
"We should further uplift China-Africa and China-South Africa partnerships to a new, higher level," Hu said.
Mbeki said a free-trade pact did not form part of the discussions because it remains on the agenda between China and the Southern African Customs Union. "We remain committed to reach a conclusion of that agreement," he said.
Said Hu: "Economic cooperation between China and South Africa and indeed between China and the Southern African community has been growing very rapidly, to the benefit of both sides.
"We are very positive towards the establishment of a free-trade area. China will push forward this process in a prudent matter."
Hu was welcomed on his two-day state visit to South Africa with a 21-gun salute and an honour guard.
South Africa is one of the last stops on his African tour. He has already visited Cameroon, Nigeria, Sudan, Zambia and Namibia. He has yet to visit Mozambique and the Seychelles.
On Wednesday, he will deliver a keynote address at the University of Pretoria, visit the Cradle of Humankind world heritage site and hold talks with Chinese business and community leaders.
In Namibia, Hu signed agreements with his counterpart, Hifikepunye Pohamba, and extended a grant of $4,1-million and a soft loan for the same amount.
The two sides inked pacts on economic and technical cooperation and boosting group tourism from China. Part of the Chinese grant is meant to be used to build two schools.
Hu flew into Namibia earlier on Monday from nearby Zambia where he had pledged $800-million to develop the country's copper mines and waived nearly $8-million of its debt.
|
|
|
|
|
