While reading that Black Business Council president Sandile Zungu is wooing the organisation’s US counterpart, the National Business League, with the goal of black-owned businesses working together so the council’s members can have access to capital and be better integrated into supply chains, it occurred to me that the council should consider devising a strategic plan to target Chinese investors.
There have been success stories and failures regarding bilateral deals between China and SA. Most of the deals have not been huge and do not make the news, but collectively there is substantial trade and completed investments between the two countries, and much potential for more.
Growing up in a trading family, teaching at business schools and taking SA business delegates to China over the years, I have participated in and observed my fair share of business discussions. I can assure Zungu and members of the Black Business Council that regarding ideology, colonialism and emancipation they will get a sympathetic hearing.
Chinese people also suffered from colonial oppression. And if they are prepared to offer practical assistance in taking Chinese investors by the hand to explain SA’s BEE regulations, which many Chinese investors feel are a hindrance, the council will get more than sympathy. They will find enthusiastic Chinese businesses partners eager to explore opportunities.
“Where do we start?” I hear you ask. China is far away and for most South Africans it is a foreign and strange place. In addition to signing up for the next trade fair to go and see China for themselves, they should start by chatting with the local Chinese business community.
There are active Chinese trade associations and chambers of commerce representing different Chinese businesses in SA. Most are well organised, with different chapters for different industries. Like the Black Business Council they exist to solve collective issues, advocate for members’ interests and introduce business opportunities.
For large Chinese corporates and state-owned enterprises, speak to the SA-China Economy and Trade Association, now chaired by the Africa representative office of the state Grid Corporation of China.
If Black Business Council members are interested in working with labour-intensive clothing industry investors, something I have written about before, they should consider having a chat with the Southern Africa Minnan Chamber of Commerce. The Minnan region in Southern China is a major base for the clothing industry in China and has close links with investors in the Newcastle textile industry.
CHINESE UBUNTU
Advice that is intuitively understood by black cultures in Africa, is that Chinese people prefer a relationship first before they carry out business — call it Chinese ubuntu if you like. The SA business culture can be too direct and focused on closing the deal — too many South Africans get upset and want no more to do with their potential business partners if a deal falls through. International business is tricky and first deals seldom work out for a range of reasons.
While Chinese businesspeople are equally keen to close the deal, they will maintain the relationship even if the first deal — or the first dozen deals — do not work out.
There is a small but active Chinese business community right here in SA. It is diverse, but it all links into the “bamboo network” across Africa, back to China and across the globe.
If you are keen to source goods from China I would advise you to spend an afternoon chatting with traders who have already set up shop in China Mall. If you are keen to find potential partners to discuss a deal, I would advise that you request your chamber of commerce or trade association to reach out to the relevant Chinese chamber of commerce in SA to set things up.
• Dr Kuo, a former lecturer at the Shanghai International Studies University in China, is adjunct senior lecturer in the University of Cape Town’s Graduate School of Business.
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