Shenzhen could be an important partner for South Africa as its energy sector underwent a major transformation, President Cyril Ramaphosa said yesterday.
Speaking at the Shenzhen Business Round-table with leading technology captains of industry to attract South Africa’s investment drive, Ramaphosa said South Africa has made a firm commitment to reduce its carbon emissions in line with its global commitments.
“We are doing so at a pace and in a manner that is appropriate to our country’s development path. As we undertake this just and inclusive energy transition, we see many opportunities for growth and job creation in the green economy,” Ramaphosa said.
“We have introduced policies to promote the development of the electric vehicle industry in South Africa.”
Ramaphosa visited Guangdong Province during his state visit to China, where he is championing South Africa’s economic diplomacy, and he drew inspiration from the knowledge economy that has made Shenzhen a global centre of technology, innovation and growth.
Shenzhen is regarded as China’s new energy vehicle (NEV) capital due to its track record of policy promotion and the rise of BYD.
BYD, Tencent Corporation, Huawei, and Shenzhen Energy Group were among the companies at the round-table, where Ramaphosa outlined South Africa’s commitment to attract investments by reviewing regulations that create opportunities for growth and development.
South Africa has introduced policies to promote the development of the electric vehicle industry.
With a pipeline of 130 confirmed private-sector energy projects that would produce about 22 500MW of electricity, South Africa aims to be the hub of manufacturing and development that serves other markets due to its advantageous location.
Ramaphosa toured the headquarters of BYD and Huawei led by its respective founders, Wang Chuanfu and Ren Zhengfei, during his Shenzhen visit, where he was joined by ministers of trade, industry and competition; electricity and energy; higher education; and public works and infrastructure; as well as the premier of the Eastern Cape province.
He invited the political leadership of Guangdong Province to reciprocate a business delegation to South Africa to realise mutual investment opportunities.
Ramaphosa said they were certain that companies such as BYD and CATL would find South Africa a unique and advantageous location that could serve as a hub to reach other markets.
He added that, over the last few years, regulatory changes had stimulated substantial new investment in electricity generation capacity, mainly from renewable sources.
“We now have a pipeline of over 130 confirmed private-sector energy projects that will produce approximately 22 500MW of electricity. We are also making significant investments in our electricity transmission infrastructure,” Ramaphosa said.
In addition to securing the country’s energy supply, he said these investments would lay the basis for the further growth of the advanced manufacturing sector.
“This is further supported by the implementation of the African Continental Free Trade Area, which will drive a new era of industrialisation in South Africa and across the continent,” Ramaphosa said.
“With its abundant renewable energy resources and significant deposits of the minerals that are needed to drive green growth, South Africa is well positioned to be a leader in the green energy and related industries.”
He said South Africa presented a great opportunity for companies in Shenzhen to deepen their global value chain with the capabilities that their companies had. The president encouraged them to play a more active role in their economy for mutual benefit.
BUSINESS REPORT