By Excel Fongoma
Small businesses in Gauteng will reap the rewards of a groundbreaking agreement between the provincial government and the province of Hunan in China.
The deal, which opens new trade avenues, allows Gauteng’s SMMEs to export their products to Hunan’s vast market of over 66 million people without major restrictions. There are 13 cities in the Hunan province.
“With a fairly complete range of minerals, Hunan is rich in mineral resources. Of the 160-odd kinds of minerals already discovered in the world, 141 kinds have been found in Hunan. Hunan is one of the provinces in south China that have a comparatively large reserve of coal,” the Hunan government said.
The agreement is expected to stimulate economic growth, increase job creation and enhance the global competitiveness of local businesses.
The Gauteng government said the initiative was designed to identify SMMEs with high growth potential and support them in accessing international markets.
With fewer trade barriers, entrepreneurs are set to find it easier to introduce their goods to Chinese consumers, creating new revenue streams and expanding their global footprint.
China is South Africa’s largest trading partner, and this latest agreement further solidifies economic ties between the two regions.
Gauteng premier Panyaza Lesufi expressed his enthusiasm for the deal.
“This partnership is a game changer for our small businesses. By gaining access to a market of over 66 million people, our entrepreneurs will have the opportunity to expand their operations, create more jobs and contribute to the growth of our economy. We are committed to ensuring that SMMEs receive the necessary support to succeed in this international venture,” Lesufi said.
Industry leaders have welcomed the development and highlighted the need for adequate support structures, including funding, logistics and regulatory guidance, to ensure the success of local enterprises in the Chinese market.
South Africa and China are of the BRICS bloc of countries which includes Brazil, Russia and India.
