Africans In China

The newly formed Amalgamated Automobile Distributors (AAD) joint venture between McCarthy (Bidvest group) and Imperial – both JSE-listed rivals under any other conditions – is set to expand its range of Chinese imports over the next few years.

This comes as several local Chinese importers have closed their doors in the face of plummeting vehicle sales, much of this owing to the current global credit crisis. The local presence of brands such as Geely and Meiya, have come to a swift end as cash- and credit-strapped consumers are either abdicating from showrooms floors altogether, or returning to familiar brands.

New vehicles sales in South Africa this year have already dropped by more than 30% compared with 2008.

However, the case for Chinese vehicles – offering a value-for-money proposition compared with European or US alternatives – is still strong, says AAD MD Brett Soso.

AAD was formed in June, and is a 50:50 joint venture.

Chery South Africa and Foton South Africa, previously the sole responsibility of McCarthy, now reside under AAD as the holding company.

The Chinese parent companies of Chery and Foton have the option of buying into AAD.

The value of the deal has not been disclosed.

Imperial is familiar with vehicle imports having, for example, introduced the now well-known Indian brand Tata into South Africa.

“We said it’s a tough business out there, so let’s team up,” comments Soso on the formation of AAD. “It also takes out the duplication between Imperial and McCarthy in terms of back office and logistical infrastructure, for example.”

AAD currently offers the Chery QQ3 minicar, the J5 sedan, and the Tiggo sports-utility vehicle to the South African motoring public.

In the Foton stable, there is only one product on offer, and this to the local minibus taxi industry.

Around 2 390 Chery vehicles were sold in South Africa from May to December 2008, and 1 680 Foton taxis, since the vehicle was launched in July 2007.

Soso expects 2009 Chery sales to drop by around 50% compared with 2008.

In general, he does not expect the local market to improve until banks are willing to loosen their credit criteria, which he anticipates will take another 12 to 24 months.

“At some stage, the credit approval rate was at 16% of applications.”

CHERY

The ten-year old Chery is the Asian country’s biggest 100% Chinese-owned vehicle manufacturer.

The company had one model on offer in 1999, a number which has since grown to 13.

In 2001, sales reached 28 149 units, growing to 356 000 units in 2008. Of this number, 135 044 units were exported to more than 80 countries in 2008.

The company’s production capacity is around 650 000 vehicles a year, 650 000 engines a year, and 400 000 gear boxes a year.

Chery South Africa is set to introduce the J1 – a 1,3 l hatchback – into the local market in October, notes Soso.

It is Chery’s first global car, says Chery Asian-Pacific and South Africa region GM Tony Sun.

The vehicle was designed in Italy, and is aimed at the North American, Asian and European markets, he adds.

Chery is keen to offer South Africa an even wider range of vehicles.

However, says Soso, any new introduction has to make sense from a price perspective.

Vehicles imported from China to South Africa are subject to a 28% import duty, adding to the cost.

Accepting vehicles based on the same production platform – which means there is a high commonality of parts – make particular sense, adds Soso.

“We are likely to be offered six Chery models over the next two years, but we won’t take all of them.”

These models may include a minibus for the taxi market, and a mini pick-up.

FOTON

AAD is set to introduce a new taxi to the local market in September, in the form of the Inkunzi (Zulu for bull).

The 14-seater will retail at roughly R200 000, with the new long-wheel base version replacing the current short-wheel base version.

“The vehicle has been homologated [recognised as a production model] and has passed all the taxi specifications in June already,” says Soso.

The long-wheel base version adds a few centimetres legroom for commuters, as well as one extra seat and power steering.

The Inkunzi makes use of a 2,2 l petrol engine.

Other vehicles to come from the Foton group, planned for a phased roll-out in the South African market from 2010, includes the MP-X multipurpose vehicle, a range of single and double-cab vehicles, and a range of light-duty trucks from 1,5 tons through to five tons.

“These vehicles are all currently being homologated,” says Soso.

In the long-term Foton also wants to introduce a range of heavy-duty trucks into South Africa.

The 13-year old Beijing-based Foton is the world’s second largest commercial vehicle manufacturer.

Last year the company sold 409 800 vehicles, up from 63 600 units in 1999.

By the end of this year, the company will have 11 factories worldwide, including facilities in Mexico and Vietnam.

THE FUTURE

Over the next few years, the Chery and Foton companies within AAD will start to function much more independently of each other, says Soso.

At this point in time Foton is much more commercial-vehicle orientated, with Chery a strong passenger vehicle manufacturer. However, this is set to change as Foton is developing its own range of passenger vehicles.

Soso adds that he expects a few new Chinese brands to be introduced into the local market over the next year or so.

This will seem a lucrative proposition on the back of a stronger rand, having recuperated from a weak spell at around R10 to the dollar, which all but erased the price advantage Chinese vehicles have to offer.

Police in South Africa have arrested suspects after the slaying of a Chinese man.

Tang Yiguang, a 33-year-old from Fujian province, was shot in the head on Sunday morning, apparently by armed robbers attempting to hold up his store in Vryheid, a town 400 km from Johannesburg.

Embassy officials are already liaising with investigators and warning that Chinese business people are becoming targets in the country.

“I contacted the police this morning,” said Lou Xiandi, counselor on security at China’s Embassy in South Africa.

“They have caught five of the eight suspects, including the suspected gunman. They have also found guns.”

Lou said the robbers also shot dead a local security guard before taking cash and goods from the supermarket, which specialized in the sale of Chinese products.

Tang’s father is on his way to the country and Tang’s brother-in-law is running the business.

“We will do what we can to help his father,” Lou said, adding that officials have visited Tang’s wife and relatives to express their condolences.

Police concluded on Monday that the killing was carried out by eight people, including Tang’s cashier and her relatives, said Liu Yantao, chief of China’s Consulate General in Durban.

Liu has asked police to step up patrols around Chinese businesses in the wake of the killing.

Around 300,000 Chinese people live in South Africa. In Vryheid, some 200 Fujian people run around 50 shops, said Lou.

He said Sunday’s robbery, the third in the country in a little more than a month, was “not accidental”.

“These recent cases show signs of employees conspiring with robbers,” Lou said.

On July 1, a Fujian native who ran a factory was robbed on pay day with collusion from an employee.

And on July 14, a Beijinger who ran a chicken farm was shot dead by two employees during a robbery.

Lou warned Chinese merchants in South Africa to be cautious.

Li Xinzhu, chairman of Fujian natives association in South Africa, said it is hard for Chinese businessmen to open bank accounts in cash, making them targets.

Fatal robbery in Zambia

On Monday morning, a Chinese man, surnamed Chen, was killed by a robber in Lusaka, capital of Zambia, according to China’s Embassy in Zambia.

His mother was seriously injured and was being treated in hospital. A mobile phone and cash were taken.

The case followed a slaying on April 22 in which a Chinese merchant was killed at his residence in Lusaka by robbers.

(ChinaDairly)

Johannesburg - South Africa, the world’s second-largest exporter of apparel wool, posted record wool exports to China during the 2008/09 season, an industry body said on Monday.

Exports of unprocessed wool to the Asian nation grew 53 percent to 21.2 million kg from 14 million in the 2008/09 season, Cape Wools said in a statement.

“The total value of the wool shipped to China amounted to R622.7m, which is slightly down on the previous season due to lower wool price levels,” the organisation said.

It said total export volumes of partly processed wool had dropped to 27.2 million kg from 29.4 million in 2007/08.

South Africa mainly exports unprocessed wool to China, and also smaller quantities of scoured wool and wool top.

Cape Wools said exports to other countries including Italy, the Czech Republic, Germany and India had fallen due to the slowdown in retail demand for clothing caused by the global economic downturn.

- Reuters

JOHANNESBURG, (Reuters) - South Africa’s No. 2 banking group FirstRand Ltd (FSRJ.J) has partnered with China Construction Bank (0939.HK) to help both companies win investment, corporate and project finance deals in Africa.

They said they would focus on providing joint advisory and structuring services to CCB’s Chinese clients looking to expand in Africa, African corporate clients and projects that may be of interest to CCB’s Chinese customers and FirstRand’s South African clients looking to do business in China.

FirstRand, struggling with rising defaults and a recession at home, is stepping up its expansion into Africa under newly appointed CEO-designate Sizwe Nxasana.

“CCB brings a formidable balance sheet to support RMB’s corporate finance, M&A and project finance teams,” Nxasana said in a statement.

He said the tie-up would allow FirstRand Bank and CCB to participate in large transactions and investment opportunities expected to emerge in Africa, where resource-hungry Chinese companies are investing heavily.

FirstRand is competing with Standard Bank (SBKJ.J), which is 20 percent owned by Industrial and Commercial Bank of China (ICBC) (1398.HK) (601398.SS), and which has used the tie-up to pursue deals aggressively in the rest of Africa.

FirstRand shares gained 1.56 percent to 14.93 rand by 1131 GMT, slightly outpacing a firmer JSE Top-40 index of blue-chip stocks .JTOPI

JOHANNESBURG,  (Xinhua) — World heads of states including U.S. President Barack Obama were impressed with South Africa’s preparations for the soccer World Cup, the South African Press Association quoted South African President Jacob Zuma as saying on Saturday.

“I am impressed with what South Africa has achieved since it was awarded the right to host the World Cup. Heads of states including the U.S. President Barack Obama are talking about it,” said Zuma addressing workers at Durban’s Moses Mabhida Stadium.

Zuma visited the stadium to see the work that has been done at the stadium and to thank workers for the contribution they have made. The president was accompanied by KwaZulu-Natal Premier Dr Zweli Mkhize, eThekwini Municipality Mayor Obed Mlaba and all provincial MECs.

Zuma said in all international summits he had attended, heads of states were praising South Africa for being well on track with World Cup preparations.

“One of the heads of states called me aside during one of the summits and asked me to visit his country soon so that he will also return the visit next year during the world cup. He is the president of the country that is likely to win the cup and we nearly beat it during the Confederation Cup. I am not going to mention his name. You can guess which country I am talking about,” he said.

He said sceptics who thought that South Africa would not organize the World Cup had been proven wrong.

“Even FIFA president Sepp Blatter has made it clear that he is impressed with the manner we are preparing for the tournament.”

He said criticism had also helped South Africa to work even harder.

“We are ready. There is no doubt about that. I would like to thank all people who are involved in building stadiums. We are ready because of your contribution. I would also like to thank political leaders for their dedication.”

Zuma called on Mlaba to slaughter a cow for the workers when they finish building the Moses Mabhida stadium.

by Lucy-Claire Saunders

UNITED NATIONS, (Xinhua) — Last week, the founder of the consultancy group Beijing Axis touched on a phenomenon occurring in South Africa that is being replicated across the African continent.

“Far more Chinese companies are doing deals very quickly … What is to follow will be far, far greater,” Kobus van der Wath said of Chinese investment at the African Mining Congress in Johannesburg.

The Beijing Axis is a cross-border firm registered in South Africa that provides management consulting and international trade solutions to organizations with a China-Africa agenda.

However, in many Africa-related business cases, the West is absent. A report released by the U.S. Chamber of Commerce in May found that U.S. firms deemed the level of risk in Africa unacceptably high.

But where the West sees risk, China sees opportunity. Africa has provided the highest return on foreign direct investment of any region in the world with an average of 31 percent for two years straight, said a report released at the 2008 U.N. Conference on Trade and Development.

And as a result of China’s explosive growth, Africa has an opportunity to reduce its dependence on traditional trading partners such as the United States and the European Union (EU), said Michael Kulma, an expert on China’s economy at the Asia Society.

“If you look at Africa and China’s trade pattern, the numbers suggest that China and India combined make up about a third of export trade for African nations, which replaces the traditional U.S. and European relationships,” Kulma told Xinhua. “No doubt that China is gaining ground in that economic sphere.”

By importing Africa’s raw commodities, and more recently, African-manufactured value-added goods such as processed foods and household consumer goods, China has helped integrate the continent further into the global economy.

Adams Bodomo, associate professor of linguistics and African studies at Hong Kong University, wrote in a recent essay that Africa and China have entered a golden era. This era, according to Bodomo, is marked by high-level political visits and meetings, an increase in trade and the rapid establishment of African and Chinese migrant communities on both continents.

“Ten years ago, there was talk about the marginalization of Africa,” Bodomo told Xinhua during an interview. “Now, nobody talks about that.”

China’s presence has helped to “diversify the destination points for African exports and introduced greater competition while making available far cheaper manufactured imports than is usually the case,” said Ernest Aryeetey, a senior fellow at the Brookings Institute and director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana.

“It is not for nothing that the prices of many commodity exports from Africa remained fairly stable for the best part of the last eight years,” Aryeetey told Xinhua via e-mail.

Bodomo said all of this has presented Africa with the opportunity to funnel China’s interest into real investments in social projects.

“Africa has enjoyed a good decade of economic growth, and profit margins for foreign businesses there tend to be very healthy,” French Howard, who recently wrote an op-ed about U.S. interest in Africa for the New York Times, told Xinhua via e-mail while traveling through Southeast Asia.

“Chinese companies have … very smartly sought to expand in places where international competition is relatively weak. Africa is just such an environment.

“Having said this, Chinese business people deserve credit for understanding that Africa is a promising new stage for globalization,” he concluded.

With few U.S. firms willing to invest in Africa, Chinese state-owned enterprises have discovered an environment to conduct business with less competition.

Nevertheless, China is not immune to the risks that deter U.S. interest. However, Chinese businessmen are still involved in deals with Africa, and they are also taking preventive measures to ward off possible terrorist attacks.

In 2008, China-Africa trade volume reached 106.8 billion dollars, up 45.1 percent from a year earlier, according to the Chinese government statistics. This year, the trade volume is likely to continue to expand.

Standard Bank has a head start — and the others don’t like it.

South African banks may not be fiercely competitive at home, but they certainly are when it comes to the rest of Africa. Nedbank and FirstRand are trying to play catch up with market leader Standard Bank, while Absa is trying to figure out how to work more closely with Barclays on the continent. While Standard is still streets ahead, the other banks are now pushing hard to develop a coherent African strategy.

The scramble for Africa is on because the continent offers serious growth opportunities. Many African banking markets remain quite undeveloped. Not because banks just haven’t thought of being better; rather, the economic environment often acts as a major constraint. It’s not easy to offer home loans where there is no deeds registry (although some creative solutions are being cooked up), or credit cards when there are no phone lines (cell networks are cracking that problem too). But a combination of new technologies and better policy-making, particularly around financial systems, means many African economies now have major potential. South Africans’ continental base and experience with African issues such as inequality and poor infrastructure equip them well to ply their trade on the rest of the continent.

It’s not easy, though. South Africans have not only each other to contend with; Nigeria’s banks, flush with capital, have the same idea. CNN and London’s Underground are filled with advertising by Nigerian majors like Zenith Bank, UBA and Intercontinental announcing their intention to be major African players. East Africa also has a handful of contenders for continental dominance. And then there are the foreign majors like Citibank, Standard Chartered, HSBC and Barclays trying to establish their own continental supremacy, although one gets the sense their African strategies don’t occupy too much time on the agendas of global managers.

While Standard Bank took the lead in Africa by buying the ANZ Grindlays Africa network in 1993 (to which they have since added a number of other acquisitions), the other South African banks were more tentative (outside of the neighbouring countries), waiting for their traditional South African client base to lead the way.

Now, though, the strategy is to pick up direct African business. Nedbank has formed a joint venture deal with West Africa’s Ecobank to cooperate in each other’s markets. Unfortunately, it has a bit of the flavour of Nedbank’s last major African foray — a joint venture with HSBC, in Equator Bank. Nedbank was a partner from 1994 to 2003, but it didn’t work out, costing money rather than making it.

Presumably it will work harder with Ecobank, although it will have some work to do to form a productive relationship with its francophone counterpart.

Joint ventures are far from straightforward. When the Industrial & Commercial Bank of China (ICBC) bought 20% of Standard in 2007 and announced a major cooperative agreement, much was expected.

But so far not much has been delivered, with one exception — Standard and ICBC’s joint deal to finance the R13-billion Botswana Morupule B Power Station project in May this year. It was a corker of a deal. All the usual suspects pitched to get the work — offering the usual financing options like raising capital in European debt markets, sweetened by some overpriced own-balance-sheet lending.

But Standard swept in with an innovative deal that saw ICBC inject R7-billion in finance, with the risk mostly taken care of by a credit guarantee from Sinosure. It helped that the construction tender had been won by a Chinese major that ICBC had banked forever — but it was also made possible by Standard’s on-the-ground presence in Botswana.

FirstRand’s strategy is different. It has mostly pursued a suitcase approach to the continent — flying in to pitch for business. This is slowly evolving into a more engaged approach in some markets where it will open an office, particularly for its Rand Merchant Bank side which has been hunting for deals. FirstRand is also trying to establish itself as banker to India-Africa business (much as Standard has done for China-Africa) with a feisty Indian operation.

Which leaves Absa. Its Barclays parentage should give it a major advantage in Africa, but so far it has not. That has largely been because of regulatory obstacles. The idea when Barclays bought Absa in 2005 was that Absa would then buy out all of Barclays’ operations in the rest of Africa. That would have made Absa a serious player. But South African regulators poured cold water on the idea, concerned at how much strain a spate of African acquisitions would put on Absa just after the Barclays deal. This has stymied Absa when it comes to figuring out what to do in Africa. Inevitably, though, the acquisition of Barclays’ African businesses will land back on the agenda at some point, and then Absa may well become Standard’s main challenger on the continent.

Feedback: banknotes@intellidex.co.za

(thetimes.co.za)

China’s outward investment expansion in South Africa was only beginning, Kobus van der Wath, the founder and group managing director of the consultancy The Beijing Axis, said on Wednesday.

“What is to follow will be far, far greater,” he added when addressing the African Mining Congress in Johannesburg. Van der Wath said China was using the global financial crisis as a time to invest and expand.

“Far more Chinese companies are doing deals very quickly - and these are deals that would have involved players in the West,” he said.

While the financial crisis had hit the global mining sector badly, Chinese mining companies had been better prepared, he noted.

“The global financial crisis has given Chinese mining companies the opportunity to go global by securing strategic assets at fire-sale prices.

“And as international mining companies struggle with debt, China has the best financial banking to snap up mining assets,” Van der Wath said.

China’s economy had grown tremendously over the past few years, making it the third largest economy in the world. However, Van derWath predicted that China would shortly overtake Japan and would soon be in second position.

He said that China had a wide range of resource demand drivers with construction being the largest component, and other sectors included the manufacturing and the automotive industry.

However, China’s infrastructure was still under strain and it needed to upgrade its ports, highways and railways, Van der Wath explained. “In this respect it has a long way to catch up.”

(chinatradeinformation.net)

Chana Auto, one of China’s biggest carmakers, plans to invest $80m in South Africa over the next five years. The investment would culminate with the construction of a new assembly plant, which would be the country’s first green-field car plant in 40 years.

Yang Qing, general manager of Chana International, told local newspaper Business Report that the investment would take place in three phases, with the construction of a new plant, whose location has not been decided, being the final stage. The investment is expected to create 1,000 jobs.

Initially, though, Chana’s activities will focus on boosting sales of imported Chana vehicles in the South African market. To date, about 5,000 Chana vehicles have been sold in South Africa, which is the biggest and most mature automotive market in Africa.

Meanwhile, Geely Automobile, another of China’s Big Five, is engaged in a similar expeditionary mission in Algeria. It has just awarded the PR deal to develop its brand in Algeria to Open2Europe, a pan-European hi-tech PR firm headquartered in Paris.

Open2Europe will accompany Geely in developing its brand in Algeria, which is seen as a strategic market by the Chinese carmaker. The campaign will start with the launch of the new Geely Panda.

Geely apparently chose Open2Europe because of its previous success with Chinese companies, and its expertise in increasing visibility in the European, American and Arabian media.

Car industry analysts have long argued that when China’s carmakers start flexing their expansionist muscles, they would most likely start with developing economies of Africa, Asia and eastern Europe, rather than compete head on with the established western and Asian carmakers giants in mature markets.

So while Europe’s media have been salivating over the potential implications of a Chinese-owned Opel — Beijing Automotive Industry Holding tabled an eleventh-hour offer for the German carmaker — China’s increasingly aggressive moves in smaller markets risk going unnoticed.

(engagingchina.com)

JOHANNESBURG – President Barack Obama has tentatively accepted an invitation to attend the opening ceremony of the 2010 World Cup here next June, Joseph Blatter, the president of FIFA, said Monday.

“He accepted,” Blatter told a small gathering of reporters here. “But you know that heads of state are extremely busy. Hopefully his schedule will allow him to attend.”

A visit by the American president – especially one whose father was born in the African nation of Kenya – would lend an additional measure of credibility and cachet to the World Cup, the world’s largest sporting event, which is being hosted in Africa for the first time and which faces significant challenges in terms of security, transportation and lodging for the 450,000 expected international visitors.

The American president is extremely popular here. Several times, an American reporter, asked where he is from, and replying that he is from the U.S.A., has then been asked, “How’s Obama?”

Obama has also lent his support to an effort by the United States to host the World Cup in 2018 or 2022.
(goal.blogs.nytimes.com)

BEIJING, — The union is the second crucial step taken by the Common Market for Eastern and Southern Africa, or COMESA, as the continent moves toward economic integration. The 19-member bloc was established in 2000 to become Africa’s first free-trade area.

As Africa’s largest trading group, the regional customs union aims to lift tariffs among member states and reduce trade barriers with third parties.

Sunday’s summit followed a Council of Ministers meeting from Tuesday to Thursday, and talks between COMESA foreign ministers on Friday and Saturday.

In other developments, Zimbabwean President Robert Mugabe replaced his Kenyan counterpart, Mwai Kibaki, as COMESA’s chairman.

The summit, which had originally been set for last year, was postponed twice, the first time to allow the host country Zimbabwe to complete its electoral process amd form an all-inclusive government.

The meeting was postponed again while organizers studied issues related to Free Trade Areas and common external tariffs.

Xinhua News Agency correspondents reporting from Victoria Falls. (XHTV)
Editor: Chris

Have you ever wondered why, in today’s modern times, people across the world still tend to think that South Africa is a primitive country where you have lions walking around in your back yard, or that we don’t have the internet!? I mean, really, come on people! That would be like me thinking that Australians ride to work on kangaroos! But just how far does it go?

We hereby present to you a list of snappy answers to really stupid questions about South Africa:

Q: Does it ever get windy in South Africa ? I have never seen it rain.
A: We import all plants fully grown and then just sit around watching them die.

Q: Will I be able to see elephants in the street? (USA)
A: Depends how much you’ve been drinking.

Q: I want to walk from Durban to Cape Town - can I follow the railroad tracks? (Sweden)
A: Sure, it’s only two thousand kilometres, take lots of water…

Q: Is it safe to run around in the bushes in South Africa ? (Sweden )
A: So it’s true what they say about Swedes..

Q: Are there any ATMs (cash machines) in South Africa? Can you send me a list of them in JHB, Cape Town ,Knysna and Jeffrey’s Bay? (UK)
A: What did your last slave die of?

Q: Can you give me some information about Koala Bear racing in South Africa? (USA)
A: Aus-tra-lia is that big island in the middle of the pacific. A-fri-ca is the big triangle shaped continent south of Europe which does not…oh forget it. Sure, the Koala Bear racing is every Tuesday night in Hillbrow. Come naked.

Q: Which direction is north in South Africa ? (USA)
A: Face south and then turn 90 degrees. Contact us when you get here and we’ll send the rest of the directions.

Q: Can I bring cutlery into South Africa ? (UK)
A: Why? Just use your fingers like we do.

Q: Can you send me the Vienna Boys’ Choir schedule? (USA)
A: Aus-tri-a is that quaint little country bordering Ger-man-y, which is…oh forget it. Sure, the Vienna Boys Choir plays every Tuesday night in Hillbrow, straight after the Koala Bear races. Come naked.

Q: Do you have perfume in South Africa ? (France)
A: No, WE don’t stink.

Q: I have developed a new product that is the fountain of youth. Can you tell me where I can sell it in South Africa ? (USA)
A: Anywhere where a significant number of Americans gather.

Q: Can you tell me the regions in South Africa where the female population is smaller than the male population? (Italy)
A: Yes, gay nightclubs.

Q: Do you celebrate Christmas in South Africa ? (France)
A: Only at Christmas.

Q: Are there killer bees in South Africa ? (Germany)
A: Not yet, but for you, we’ll import them.

Q: Are there supermarkets in Cape Town and is milk available all year round?
A: No, we are a peaceful civilisation of vegan hunter-gatherers. Milk is illegal.

Q: Please send a list of all doctors in South Africa who can dispense rattlesnake serum. (USA)
A: Rattlesnakes live in A-meri-ca, which is where YOU come from. All South African snakes are perfectly harmless, can be safely handled and make good pets.

Q: I was in South Africa in 1969, and I want to contact the girl I dated while I was staying in Hillbrow. Can you help? (USA)
A: Yes, but you will probably still have to pay her by the hour.

Q: Will I be able to speek English most places I go? (USA)
A: Yes, but you’ll have to learn it first.

Do you have some of your own snappy answers? Feel free to drop them in the comments.

(blog.travelcrossings.co.za)

By: Matthew W. Sharp

After turning down advances from China Mobile (NYSE: CHL) earlier in the year, MTN (OTC: MTNOY) revived merger talks with India’s Bharti Airtel (BOM: 532454). If the deal goes through, the resulting telecom giant would intensely rival China Mobile’s expansion initiatives in emerging markets.

According to a Reuters report dated 25 May 2009, Bharti and MTN are mulling an initial deal worth over $23 billion, under which Bharti would pay cash and shares to end up with 49 percent of MTN, after MTN pays cash and stock for an effective 36 percent stake in the Indian firm. Ideally, trading equity stakes would eventually result in a total merger. By combining India’s largest mobile operator with MTN’s networks across 21 African and Middle Eastern markets, the merger would create the world’s third largest cell phone group by subscribers behind China Mobile and Vodafone (NYSE: VOD). The new firm would have 200 million users. Annual sales of $20 billion, however, would be dwarfed by both larger rivals, with China Mobile at $60 billion and Vodafone at $65 billion.

Trading equity stakes would give both firms exposure to new emerging mobile markets, while a full merger would yield cost savings, allow for technology sharing, and provide the financial muscle for more expansion, analysts say. And that expansion could be right in China Mobile’s backyard.

As China’s urban and rural mobile markets become rapidly saturated, the largest mobile operator in the world has its eyes set on emerging markets in the Middle East, Afghanistan, Southeast Asia, and Africa - locations where the Bharti-MTN giant would be well-positioned to grow.  Indeed, MTN already operates in virtually untapped markets such as Afghanistan and Sudan, as well as throughout the rest of Africa, where some analysts believe users could almost double to 700 million by 2013.

The report did not hesitate to point out potential barriers to the deal, however:

MTN has been eyeing a big deal for some time and held failed talks last year with both Bharti and rival Reliance Communications. The Bharti talks collapsed when the South African firm proposed a new structure that would have seen Bharti become an MTN unit. [...] A full merger would need government and regulatory approval. South Africa’s powerful trade union COSATU, which has clout with new President Jacob Zuma and almost derailed Vodafone’s takeover of MTN rival Vodacom this month, said there were “worrying aspects” of the deal and it was looking at it closely.

(digitaleastasia.com)

By John Liu

May 25 (Bloomberg) — Industrial & Commercial Bank of China Ltd., the world’s largest lender by market value, received about 1.8 billion rand ($220 million) of dividends from Standard Bank Group Ltd. after buying a stake in the company last year.

The return on the investment amounted to 7.7 percent, Industrial & Commercial Bank, also known as ICBC, said in an e- mailed statement today. Johannesburg-based Standard Group, Africa’s largest bank, reported a 2 percent gain in net income in 2008 to 13.93 billion rand.

Beijing-based ICBC, which has more customers than Russia has people and $247 billion of cash and equivalents, is reaping returns after spending more than $6 billion on acquisitions in Indonesia, Macau and South Africa over the past two years as rivals overseas sold assets to shore up balance sheets. Chairman Jiang Jianqing aims to triple the share of profit coming from abroad to 10 percent.

State-owned ICBC’s international expansion began in December 2006 with the purchase of 90 percent of PT Bank Halim Indonesia for 90 billion rupiah ($8.8 million). The company has also agreed to buy 79.9 percent of Macau’s third-biggest bank for almost 4.7 billion patacas ($589 million) and bought a fifth of Standard Group for $5.4 billion in March 2008, the largest overseas acquisition by a Chinese bank.

ICBC and Standard Group have cooperated in 65 projects, including funding China Oilfield Services Ltd.’s $2.5 billion purchase of Norway’s Awilco Offshore ASA in September, according to today’s statement.

The partners agreed last week to arrange financing for the expansion of Botswana’s Morupule B power station, which involves the installation of four 150-megawatt coal-fired air-cooled units and is expected to cost about $1.6 billion.

Shares of ICBC will be suspended from trading in Shanghai today because of an annual shareholders meeting. The stock has climbed 20 percent in Shanghai this year.

To contact the reporter on this story: John Liu in Shanghai at jliu42@bloomberg.net

May. (China Knowledge) - Shenzhen Huaqiang Holdings Ltd, parent of Shenzhen Huaqiang Industry Co Ltd<000062>, plans to build a theme park in Johannesburg, South Africa, sources reported.

Huaqiang Holdings signed the contract with the China Development Bank, China-Africa Development Fund (CAD Fund) and South Africa-based Industrial Development Corporation at the China (Shenzhen) International Cultural Industries Fair.

The theme park, namely Fantawild Adventure, will cover a land area of 770,000 square meters in Johannesburg. It will consist of three zones, which are distinguished by Chinese culture, African culture and global culture. The total investment is expected to be up to RMB 250 million.

Liang Guangwei, president of Huaqiang Holdings, said construction of the theme park would begin at the end of 2009.

The park is estimated to be completed in three years and will attract around 2 million visitors each year.

Huaqiang Holdings built its first theme park in Chongqing in 2006, which proved to be a huge success.

SHENZHEN,  (Xinhua) — A Chinese company signed an agreement Monday with three other partners to construct a Disneyland-style theme park in Johannesburg, South Africa.

Huaqiang Holdings Limited, based in Shenzhen, will cooperate with China Development Bank, the China-Africa Development Fund, and the Industrial Development Corporation of South Africa to build a 770,000 square meter theme park at a cost of 250 million U.S. dollars.

The theme park will consist of three zones: Chinese culture, African culture and world culture, according to Liang Guangwei, chairman of the board of Huaqiang Holdings Limited.

Construction will start late this year and will take two to three years to complete. The goal is to entice 2 million tourists a year.

Liang said he felt proud that China was the second country in the world after the United States in exporting theme parks to foreign countries.

Cassim Nakkooda, director of trade and investment promotion in Johannesburg City, was present at the agreement signing ceremony.

Huaqiang Holdings Limited, a state-owned company engaged in electronics and sugar production, expanded into making 3D cinematic equipment for overseas customers eight years ago.

It has built or is in the process of constructing amusement parks in five Chinese cities.

It began to build a theme park in Iran in May 2008. Chinese investment in this project totals 80 million euros. Huaqiang also completed designs for two other theme parks in Ukraine and Nigeria last year.

(nytimes.com)

South Africa has slapped provisional anti-dumping penalties of 62% and 96% respectively on stainless steel kitchen sink imports from China and Malaysia.

The provisional payment was gazetted (published in official government paper) by the International Trade Administration Commission (Itac) earlier this month, and is the latest in the saga involving unlisted local kitchen sink manufacturer Franke Kitchen Systems’ battle against cheap imports.

Franke wants trade measures against cheap and subsidized imports, which it said had severely undercut the price of kitchen sinks in the local market - costing it a chunk of the market share.

Itac found in a preliminary determination that the local industry was suffering material harm as a result of dumping. It also determined a residual subsidy margin of 35% for Malaysian manufacturers that did not participate in the investigation.

While the dumping duties for the two countries are relatively high, lower levels of duties have been imposed on two individual Chinese companies and one Malaysian company that had participated in an investigation conducted by Itac in those countries at the end of last year.

The companies are presumed to be the predominant exporters of the kitchen sinks into the southern African market.

This is only the third time that provisional dumping duties have been awarded to a local manufacturer against imports from China, since South Africa granted that country market economy status two years ago and agreed to enhance debate with China on dumping investigations.

Previously, provisional duties had been awarded in complaints against the dumping of polyvinyl chloride and welded steel chain. The provisional anti-dumping payment will give Franke temporary respite.

Source African Press Agency

As I watch the electoral process unfold in SA from China I feel proud of my country. My heart jolted as I wrote the words, “my country”. The elections are being done peacefully, democratically. My heart was warmed by the sight in the Mail & Guardian of a picture of an IEC official helping a blind, elderly woman vote as that polling station had no Braille ballots.

Since leaving SA nearly five years ago to explore the world, live elsewhere – a dream of mine since childhood – I have never really missed the country much as I was too busy absorbing one or another culture. Sure, I had travelled overseas several times before leaving, SA (perhaps for good, perhaps not) but I had never worked in another country. Believe you me a quick two week or two month tour of a country does not get it into your being. Not at all. It was too difficult to miss SA as I was too occupied with experiencing (not always enjoying) other countries, England, France, New Zealand and, omigod, especially trying to crack China as my regulars well know. The latter was the serious culture shock, France was simply enchante.

Today, at school between lessons, as I watch through the window the spring leaves slowly flare out of the street side plane trees, I miss the old girl: SA I mean. What almost comes first to mind and heart is the purple drama of Gauteng (Gauteng! You make my heart sing…) thunderstorms: that electric hush and thrill to the air as I cycled in the Magaliesberg, then the rain pounding down and the sudden klap of lightning loosening the bowels. The smell of wet veldt and the bluegum and fir trees’ leaves darkly boiling sideways into the storm. Ten minutes of clobbering rain: then that spiky silence again as the Magaliesberg emerges from the storm again, shrugging herself off, refreshed and slowly starting to smoulder again in the long, dusty summers…

Braais come next (barbeques for non South Africans), and I suppose it is a question of upbringing, but there is nothing like a SA braai. I haven’t had one in fricken three years, and the last one was in New Zealand where I had to grudgingly (I emphasise grudgingly) admit the beef and lamb was better than South Africa’s, my bru. The Chinese have no clue; just about everything is cooked and drowned in oil. The first thing the Chook wants when we get to New Zealand next year is: 1) Her daughter Michelle to have a large packet of biltong with her when she collects us at the airport. 2) A braai with pap (sudsa) and tomato bredie and mielies simmering on the grate.

What still features in my nightly dreams like a spiritual yearning for transcendence are the forests in the Eastern and Western Cape, particularly the Tsitsikamma forest and hiking the Otter Trail. I was always way ahead of the group I was with and it was great to sit for a bit on a completely desolate strip of beach butt naked with a glass of whiskey and water, sweating from the day’s hike and look at the whales’ spume arcing in the distance, Plettenberg Bay starting to twinkle as the night breathed in. The forests: sitting under tall masts of pine as they sang and whispered, sailing me off into a deeper peace, only occasionally broken by a falling pine cone chuckling to the ground. I will never forget the smell of wept pine gum on my hands: my eyes moisten at that miracle of remembered scent even now.

My first alma mater is Rhodes University and today for the first time in many, many years, about two decades in fact, I looked at some pics of Rhodes on the internet and my heart ached to see all those white buildings and the hill leading up to the 1820 Settlers National Monument.

But I do not really miss the people. I have often thought about that and can only relate it to my ambivalent feelings for the Chinese. So here goes.

Things I dislike and find amusing about mainland Chinese is that they hawk and spit on the streets periodically right in front of you, they do not queue a lot of the time, and will happily jump in front of you in queues (Beijing had special training days for months before the Olympics to get people in bus and subway queues to behave like civilised people). On the street they point out foreigners and seem to ridicule us with their laughs and grins, talking about us openly. For the most part, even in the school I teach at (and I get on with the staff and kids very well) I am still just known as lawei, the foreigner. Wherever I go I am just referred to as lawei and of late it has been freaking me out.

I can’t go to the park on People’s Square and just smell the flowers and relax in silence under the pine trees, because every second Chinese has to walk up to me and try out their swak English on me. Now their friendly efforts might sound very sweet, dear reader, but when all you want to do is time out and just enjoy the beauty of the flowers in peace, but can’t, because nearly every time there are endless people quite happy to single you out as the only lawei in the park and disturb you. (My trick when I see someone about to start talking to me is to pretend I am asleep.)

The Chinese are daft, nutty, half-baked. (Anal-retentive, “politically correct” readers have accused me of being distasteful when I describe the Chinese; I don’t care a fig. ) For example, right now workers are refurbishing our apartment building, as part of Shanghai’s general facelift for World Expo 2010. We are on the twenty-second floor and live in a green cocoon of scaffolding and netting. This is the view from our kitchen window, somewhere on this blog.

The first thing the workers did was paint the corridors white, just one or two coats, and no protective enamel paint, which is typical. Then, oh sweet heaven and all the saints and angels, only then did they start repairing windows, the elevator, the paving and wiring. The paintwork, only a few weeks old, is already spoilt with indelible grime, scuff marks and spatters of cement mix. What an utter waste of money and labour. Repairs to the building first surely, then the cosmetic bit where you paint all the walls. But honestly, these okes just don’t think, dammit think! And this is one of endless episodes I can tell you. It’s hilarious living in “The Middle Kingdom”!

But I love the Chinese. They are unbelievably friendly, viscerally so. And generous. I have got friends for life and two wonderful god-daughters. Once in the rain a distinguished looking Chinese rolled down his electronic car window and tossed me an umbrella, singling me out from the dozen or so Chinese also standing in the downpour. Positive discrimination. We gave our ayi (maid) Salina a Christmas present of chocolates once and she got us socks, scarves and legwarmers. We weren’t expecting anything. We were embarrassed and moved by her loving kindness and knew she really just wanted to be part of our little family.

I will be talking and writing about the daft, wonderful Chinese for years to come and will definitely miss them, but South Africans? Not really. (Though I am thrilled I recently made contact with an old school mate of mine, a friendship that goes back to standard seven in Boksburg High in 1978 and with whom I stowed away on a ship in Cape Town in 1982 headed for France because we took great exception to compulsory military service.)

Why? I don’t know. But I can make some guesses, such as maybe, just maybe too many are too busy being “politically correct” or playing one race card or another. Maybe I will try and answer the question in a future blog, depending on the response, if any, of that glorious, hilarious, multi-faceted and feisty character, the ta-daah…Thought Leadership Commentary!

(thoughtleader.co.za)