South Africa studying China’s SOEs management models, Minister Ramokgopa concludes Beijing tour

Minister in the Presidency for Planning, Monitoring and Evaluation, Maropene Ramokgopa recently toured China as South Africa seeks to learn best practices in SOE management. Picture: Maropene Ramokgopa/X

Minister in the Presidency for Planning, Monitoring and Evaluation, Maropene Ramokgopa recently toured China as South Africa seeks to learn best practices in SOE management. Picture: Maropene Ramokgopa/X

Published Nov 8, 2024

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Minister in the Presidency for Planning, Monitoring and Evaluation, Maropene Ramokgopa has concluded her visit to the People’s Republic of China.

She engaged with the top echelons of the Asian giant’s State-owned assets institutions and enterprises during her working visit.

IOL reported last week that Ramokgopa was leading the South African government delegation on a visit to China, where the minister would engage the Chinese State-owned assets institutions and learn best practices.

Following the conclusion of the tour, Ramokgopa’s spokesperson, Litha Mpondwana told IOL that the South African government delegation was out to get detailed perspectives on how China has managed its State-owned enterprises (SOE) and related reforms.

“This visit comes as South Africa advances the National State Enterprises Bill and a new centralised shareholder ownership model for State-owned enterprises.

Minister in the Presidency for Planning, Monitoring and Evaluation, Maropene Ramokgopa with South Africa’s Ambassador to China, Siyabonga Cwele at the meeting with the China Enterprise Reform and Development Research Society (CERDS) chairperson, Peng Huagang and senior leadership of the institution. Picture: Maropene Ramokgopa/X

“The minister and delegation met with the chairperson and senior leadership of China’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC). SASAC, under the leadership of chairperson Mr Zhang Yuzhuo gave an overview of how it manages China’s State-owned assets and institutions,” said Mpondwana.

The engagement was followed by a detailed workshop led by senior leadership of SASAC and the China Reform Holdings Corporation (CRH) which contextualised China’s SOE management and supervision.

Mpondwana said Ramokgopa’s engagement with the China Enterprise Reform and Development Research Society (CERDS) detailed how China has implemented SOE reforms in various stages since 1978.

He said that engagement elaborated on the performance of China’s State-owned assets and institutions, delving deeper on how the entities are managed to support the country’s development and economic growth.

Ramokgopa also had a meeting with China’s Assistant Foreign Minister, Chen Xiaodong the former Ambassador of China to South Africa who preceded the incumbent Ambassador in Pretoria, Wu Peng.

Minister Ramokgopa during the meeting with China’s Assistant Foreign Minister, Chen Xiaodong - the former Ambassador of China to South Africa. Picture: Maropene Ramokgopa/X

Mpondwana said that high-level engagement reaffirmed the deepened ties between South Africa and China.

“The meetings with the Senior Vice President of the China Development Bank, Mr Wang Weidong and the President of the Asia Infrastructure Investment Bank (AIIB) Mr Jin Liqun, reaffirmed the commitment of the institutions to support South Africa’s SOE and infrastructure reform through investment in funding and capacity building,” said Mpondwana.

Ramokgopa’s working visit to the People’s Republic of China followed President Cyril Ramaphosa’s State Visit to China in September.

“President Ramaphosa and President Xi Jinping agreed to elevate our countries’ diplomatic relations from the level of a Comprehensive Strategic Partnership to that of an All Round Strategic Cooperative Partnership in the new era,” said Mpondwana.

Minister in the Presidency for Planning, Monitoring and Evaluation, Maropene Ramokgopa recently toured China as South Africa seeks to learn best practices in SOE management. Picture: Maropene Ramokgopa/X

“The working visit to China advances this deepened partnership, and also continued the endeavour by the South African government to learn on the best practices on managing SOE reforms and a centralised ownership model that we plan to implement through the National State Enterprises Bill.”

For the past 15 years in a row, China has been the largest trading partner not only for South Africa, but also for the Africa continent. On the other hand, South Africa has now been China’s largest trading partner in Africa for 14 years straight.

When Chinese Ambassador to South Africa Wu Peng arrived in Pretoria early this year, he emphasised that he would work tirelessly to facility two-way trade between the two nations, as Beijing opens up for more South African products.

“From January to May this year, our bilateral trade reached $23.5 billion (around R417.05 billion). South African exports to China were $15.3 billion (R271.54 billion), up 14% year-on-year,” he said at the time.

Ambassador of China to South Africa, Wu Peng - during an engagement with IOL. Picture: Supplied

Wu, a former director general of China’s Department of African Affairs in the Foreign Ministry and also former ambassador of China to Kenya said South African wine, rooibos tea, aloe gel, and other quality products are now very popular in the vast Chinese market of more 1.4 billion people.

More than 200 Chinese companies have invested or started businesses in South Africa, creating over 400,000 local jobs.

IOL