Pretoria - President Jacob Zuma's state visit to China this week signifies a deliberate attempt to reposition the economy to take advantage of new trade and investment opportunities in rapidly growing emerging markets.
South Africa is looking to expanded trade with the worlds emerging economies, which will help it meet development needs, especially by improving infrastructure and livelihoods.
This week's state visit to China means that President Zuma has visited all four of the BRIC (Brazil, Russia, India and China) countries -in a little over a year after taking office. During his visit to the four nations, he has called for stronger partnerships, trade and investment.
Research Analyst with the Centre for Chinese Studies in Cape Town Sanne Mars-van der Lugt said the visit clearly shows that the South African government views BRIC- who have banded together to get the best possible deals with the world's developed powers- as a relevant and strategic grouping.
"It is a strategic move to strengthen ties ... but it is not highly likely that South Africa will become an official member of the BRIC economies any time soon," Van der Lugt told BuaNews
Instead Van der Lugt said South Africa will be consulted by the BRIC countries in relation to particular issues that affect emerging countries.
BRIC countries share similar challenges such as poverty and inequality.
"It is therefore up to South Africa to show its regional and international leverage to the other emerging countries in order to be invited for these discussions," said Van der Lugt.
She noted that even though South Africa did not share certain characteristics with the BRIC countries, such as close-to-double digit growth numbers and large populations, the country still had a great deal to offer the emerging economies.
This year, Brazil is forecast to grow between 5,5 and 6 percent, China by 10 percent, India by 7 percent and Russia by 5, 5 percent, while South Africa looks set to experience growth of around 3 percent.
Van der Lugt said the country had a great abundance of natural resources, paired with talented human resources and intellectual capital.
"South Africa is seen as a country with an abundance of resources like many other African countries, however, with lower risks to invest."
Van der Lugt explained that South Africa could learn a great deal by engaging with the BRIC nations and make some strides in alleviating a number of its social ills, such as its high unemployment rate.
The BRIC nations work to boost trade among themselves and have called for a bigger role in major global financial decisions, primarily within institutions such as the International Monetary Fund.
By 2050, experts have predicted that, the economies of the BRIC powerhouse could be greater than the combined economies of the world's current richest nations.
Van der Lugt hopes that Zuma and his delegation will use the opportunity to secure greater political and corporate alignment between SA and China with respect to both countries' interests in Africa.
"China and South Africa are now in the position that they can be donors of support for the development of other countries ... they have money to invest in the development of Africa and they have the will to do so, to boost their image as responsible global powers as well as for creating stability in the country and create markets for their products," she said.
She added that this would also enhance the meaning of 'South-South cooperation' and distinguish it from the 'donor - recipient' relationship between traditional donors and African countries.
There has been debate over China's role in Africa. Critics have raised concern about China's support for countries like Sudan and Zimbabwe, as well as its questionable worker safety rules. However, Zuma has defended China's surging investment in Africa, saying China was making an important contribution and helping African governments.
Van der Lugt said: "The answer lies somewhere in between. China is not purely in Africa to either do good or to plunder the resources. Sino-African relations should be perceived from a global market system perspective."
A report by business consultancy firm McKinsey, labelled China's role in Africa as "dynamic".
A view that President Zuma himself shares. According to Zuma, China's economic future, South Africa and Africa in general is "very bright".
"We are still at an early stage of what will be an exciting journey, a journey out of poverty, a journey to sustainable improvements in the lives of our people, here in China, and on the African continent," President Zuma said on Wednesday at the Renmin University in Beijing. His visit to the Asian nation comes a week after it was announced as the second largest economy in the world.
In the report McKinsey advised that African and Chinese leaders-along with interested outside parties, such as multilaterals, foundations, and non-governmental organizations (NGOs)-should focus on three opportunities.
The first is strengthening Africa's economic-development strategies and capabilities at national and regional levels; second is China's willingness to undertake additional strategic-development projects in Africa, including the recent emphasis on sustainable and results-driven models, should be supported and finally, collaboration between Chinese institutions working in Africa and other donors or partners ought to be developed and encouraged.
"China's role in Africa is dynamic, with deep historical roots and a wide range of ever-changing engagements and models that don't lend themselves to black-and-white categorization," reads the report.
It adds that by pursuing these three opportunities, Africa and China can uncover new ways to promote economic development and the reduction of poverty on the continent.
Van der Lugt also shares this sentiment saying the delegation needs to establish untapped international trade relations to help the country's economic growth.
China, she said, is an interesting trading partner and market for South Africa with potential to grow.
"The hope for South Africa is that it can diversify its export to China from mainly raw materials to a better mix of raw materials and manufactured goods. "
President Zuma has already told a forum of business executives from China that South Africa is open for business.
He urged China to invest in infrastructure and manufacturing adding that government was looking to expanded trade and investment to help meet its development needs by improving roads, communication and power and by generating more manufacturing jobs.
"China is indeed a key strategic partner for South Africa, and South Africa is open for business in a big way," he said.
"We envisage meaningful future cooperation in infrastructure, the benefaction of minerals, engineering, energy, information and communications technology and electronics. There are also opportunities to be explored in manufacturing."
Trade and investment relations between South Africa and China have developed at a rapid pace since the commencement of diplomatic relations in 1998, with numerous high-level visits between the two, all aimed at strengthening relations between the regional powerhouses.
Trade ties between the two have grown rapidly in recent years, with China last year overtaking the United States as South Africa's largest export destination.
South Africa also imports more from China than it does any other country, and last year recorded a $2.7 billion (about R20 billion) trade deficit with the Asian manufacturing giant - a gap Zuma will be looking to narrow.
