SFC Markets and Finance｜David Monyae: BRI brings opportunities for South Africa and Africa continent

南方财经全媒体记者 施诗 李依农 上海报道

In commemorating the 25th anniversary of diplomatic relations between China and South Africa and the 10th anniversary of the Belt and Road Initiative, this interview with David Monyae, Director of the Center for Africa-China Studies at the University of Johannesburg, delves into the impact of these milestones. 

Monyae highlights the BRI's role in reshaping global trade, opening new routes, and benefitting both South Africa and Africa as a whole. He addresses Western criticisms of the BRI, debunking the debt trap narrative and emphasizing the initiative's positive impacts. Monyae also explores the deepening strategic relationship between China and South Africa, which extends beyond trade into areas like technology, education, and people-to-people exchanges. He acknowledges the influence of BRICS in global governance and the forthcoming BRICS expansion, which he believes will further consolidate the Global South's voice in world affairs.

Furthermore, Monyae underscores the importance of learning from China's development model, especially in poverty alleviation, infrastructure development, and environmental protection. He advocates for closer cooperation in education and technology, and suggests easing visa policies to facilitate more robust people-to-people exchanges. Lastly, Monyae envisions a future where the Global South, including the new BRICS members, plays a more influential role in global economic and political systems.

BRI Drives Trade Expansion for South Africa 

SFC Markets and Finance: This year is the 10th anniversary of the Belt and Road Initiative. What do you think about the BRI?

David Monyae: The BRI is one of the greatest initiatives of the 21st century. It came at a time when the world was not doing well. And there was crisis, and the main crisis in the developing world, particularly Africa is that the existing global trading routes, what we call the global public goods, we're not just exhausted, but we're becoming limited and expensive for goods and interaction among nations to move efficiently in a much more profitable way in terms of distance. 

The routes were designed mainly by Western powers and were in favor of their countries. And therefore, what the Belt and Road Initiative did was to shorten distance, opening new trading routes, which are much easy to reach.

SFC Markets and Finance: South Africa is the first African country to join the BRI. How has the BRI contributed to South Africa’s economy and development?

David Monyae: South Africa is strategically positioned. Firstly, it's a unique country. It sits right at the center of two oceans, the Indian and Atlantic and therefore that itself gives it advantage particularly on trading. And historically, with the establishment of Cape Town, the Cape of Good Hope, it was a stopover trading route from Europe to China and India for tea as well as spices. However, with the Belt and Road Initiative, I think it will allow South Africa and the rest of the continent to broaden its own trade not just with China, but with other developing countries in the Global South.

I think this is one of the single objectives of the governing party. They see in a number of African countries that they want to continue trading with the traditional partners, but at the same time, open new markets with countries in Latin America, in Asia, and other parts of the world unexplored before. Therefore I think the Belt and Road brings that opportunity for South Africa and Africa.

History Will Debunk the Debt Trap Concept

SFC Markets and Finance: Western media criticized the Belt and Road Initiative a lot. What's your view on that? 

David Monyae: This is a tired argument. I think we follow this argument, it's not based on history. It's not based on research. It's a propaganda propagated mainly by United States and few other Western countries. It comes out of competition between China and these western countries. And in most instances, they cannot compete with China. Therefore, they use the muscles they have, they have advantage when it comes to media. They have advantage in terms of control of other global instruments such as financial instruments, such as IMF and World Bank. And their doing indeed put a lot of pressure on a number of countries, using unfounded allegations about debt trap. 

But if you look at it, the Sri Lanka story, when the entire debt with the crisis in Sri Lanka happened, we all figured out that China's debt was not the largest, the largest debt was more of Western countries. And the other country that they favor using is Zambia. And similarly, we see Zambia is renegotiating debt, and the problem is not China. The problems were the very same Western countries. The Africa has more huge debt with Western traditional lenders than with China. However, this is used in a propagandist way. And public that is not well informed, some do accept this. But from a scholarly policy, we don't have sufficient evidence to make sense of this debt trap. But I think it's just a question of wait and see. History will prove this concept to be a bankrupted concept.

China-South Africa Relationship Evolving Beyond Trade

SFC Markets and Finance: This year also marks the 25th anniversary of the establishment of diplomatic relations between China and South Africa. What do you think about the current China-South Africa relation?

David Monyae: South Africa-China relation is quite deep. It goes way back with the revolution in China and the liberation movements in South Africa, South African liberation movements received a lot of support, financial, moral support at a global level from China. I think we've seen the extension of this relationship to strategic relationship. And we've seen the number of trade in the last 15 years, China has become South Africa's largest trading partner, as well as South Africa is also China's largest African trading partner. And the relationship is going beyond your traditional areas. We're now seeing venturing into new issues, technology. We're also seeing the relationship getting into people to people and important aspects. We're also seeing China coming in to South Africa and Africa's assistant in key strategic times, during the pandemic, (we have) assistance that came from China. In a nutshell, the relationship between China and South Africa, as they mark 25 years anniversary, the relationship is in good health.

SFC Markets and Finance: How important is China-South Africa relation for Africa?

David Monyae: Indeed, South Africa is Africa's largest industrialized country with a huge advantage in a number of areas. It has relatively better infrastructure. It has large universities and technology. And the know-how on a number of key areas. And I think it will be of great help, and it makes the situation much better when South Africa and China are closer in dealing with Africa issues. Whether it comes into the peacekeeping, development, you're going to see much more partnership including state owned enterprises, in joint ventures, in building Africa's own agenda 2063, the vision of opening up Africa and ensure that the roads are built, and there is peace and security. We deal with the climate change crisis; we deal with conflict in hotspots. Also, South Africa and China have common position within international institutions of global governance. So, this relationship is not just bilateral, it has a huge positive impact particularly on the African continent.

SFC Markets and Finance: You mention that China and South Africa can work together on global governance. Do you have any suggestions on that?

David Monyae: China brought in the Global Development Initiative, and then came up with the Global Security Initiative. And the third and last is the Global Civilization initiative. I think these concepts are injecting new impetus in the global politics. These are also concepts that are shared by South Africa and Africa. We also have seen China supporting Africa to have a seat within the G20. But we still require transformation of the United Nations Security Council to ensure that Africa, Latin America, and some parts of Asia have equality and representation in these important areas. For that to happen, you need support of China. It's quite critical. And therefore going forward, South Africa and China will continue to work together to fulfill this dream.

China's Engagement Unlocking Business Opportunities in Africa

SFC Markets and Finance: As two countries' relations are getting closer, more and more Chinese enterprises are investing in South Africa. How do these companies affect South Africa's economy?

David Monyae: Very good question. We are seeing more and more of Chinese companies, not just big companies, but we are also starting to see individual Chinese entrepreneurs in area that few people are looking at, small enterprises are also coming in. We have more than 10,000 Chinese enterprises on the African continent. And the bulk of them are here in South Africa. And what this is done, it's opening-up Africa for business. It is now attracting more companies outside China. China's involvement in Africa has also brought in positive element that more and more other countries that were ignoring Africa, are now starting to see Africa is an attractive market. This is also helping to deal with poverty, to deal with unemployment, to deal with the huge bulk of young youth population.

South Africa Learning Important Lesson of Poverty Alleviation From China  

SFC Markets and Finance: When I was in South Africa, I found that social inequality is a major issue. What can South Africa learn from China's poverty alleviation?

David Monyae: China has uplifted more than 800 million people out of poverty since the opening-up in 1978. I think the major lesson for South Africa and most African countries is to ensure that you have a very committed state and party that is people centered, first and foremost, people centered government. 

You also need to ensure that you develop infrastructure, your physical infrastructure, particularly in underdeveloped areas. In South Africa, it will be rural areas. You need to ensure that you have sufficient trains, roads, and ensure that you also move in the digital development, ensure that you use e-commerce as China does to close the gap, to ensure that those in the rural areas are able to put their goods onto the market and they have buyers, to stop this massive movement of people from rural areas into urban areas. So that life become livable regardless of where you stay. That is a major lesson that South Africa must learn. 

Other factors is China's education system. Ensure that you improve quality education. In China, its development came with a negative impact on the climate, however, the Chinese government is doing the best it can to clean up the environment. And I think equally South Africa and Africa have an advantage to learn how best to develop without damaging the environment. So new technologies will be of great assistance. And therefore I think there is more that is needed, particularly in South Africa, that we send more students into Chinese universities to learn in critical areas: health, technology, infrastructure development, space, areas that Africa has weaknesses. 

I think the main aim is to ensure that the economy continue to grow, we uplift the poorest members of our society, and by doing that, we have a shared caring economy to ensure that the gap between the rich and the poor, can be closed somehow. I mean, it's difficult to close it completely. But somehow to a level-up the playing field. I think China is playing a critical role to show the world how best to do that. And therefore, I think you need peace, stability and unity. Those are important factors. I think those are the things that we need to do as we learn from China how it dealt with the crisis. It's good that you observed when you in South Africa, that it just a small group of elite that are doing extremely well, those were well-educated like me and few others, but the bulk of our population is really facing extreme levels of poverty. I think it is important to work to ensure that we close the gap.

The Global South Resonates with a Collective Voice

SFC Markets and Finance: Looking ahead, how can these two countries enhance cooperation?

David Monyae: There is so much to do. I think we need to learn from the 25 years. This is a critical moment as we celebrate the 25th years. We need to chart new ways and to bring in new issues and to continue to negotiate best way of relating. One major issue that disturbs me is in the question of immigration. I think we need to do more to ensure that Chinese don't need to apply for visa to come to South Africa. And South Africans should not be applying visas to go to China. 

This is an area that both governments, the Chinese government and South African government need to work hard to ensure that they resolve this issue. Because what it does, it limits the people-to-people movement. The majority of our people both in China and South Africa, (are) unable to meet, to learn from each other, to know each other, to learn each other's languages, and to interact and deal away with a certain perspective that comes from the Western world.

SFC Markets and Finance: At the beginning of next year, six countries will become new BRICS members. What does this expansion mean for BRICS？

David Monyae: Since BRICS summit, I think we've seen the Western world hasn't been welcoming the changes that are taking place. In my own assessment as an expert in international relations, perhaps this is the single most important event of this new century. What advantage this is bringing is that you are seeing the consolidation of the Global South. For the very first time, the global south is increasingly starting to speak with one voice. I don't know if you've looked at the votes in the United Nations General Assembly, two votes in particular. 

One is on taxes. Just look at the numbers that the entire developing world voted similar position for taxes on big companies, including China voted with the developing countries, and only a few Western countries oppose this vote. 

And the other one is the current terrible conflict in Palestinian Gaza. China, rest of Africa and developing world also are voting resoundingly in favor of peace and security, the well-being of Palestinians, as well as Israelis, and to end that conflict. 

We're seeing the coming of new members, Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, the UAE, I think it is bringing a new impetus, it's bringing new energy into the mix. For the first time, I think you will also see that OPEC countries, 60% to 80% of OPEC countries are now BRICS members. And therefore, unlike in the past, where we rely heavily on the west, they're the ones who use the dollar, price of oil will be determined and directed by the Global South. For the first time, critical minerals that sits in developing countries will be controlled and determined terms of price and usage by the Global South, I think you're going to see changes in terms of local currencies, and then leading to the de-dollarization, where trade is going to increase using local currencies instead of the dollar. I think you're going to see more interaction in terms of technology, particularly on the issue of digital currencies. Also, the establishment of new entities alternative to SWIFT, for instance, I think you might see one, and we have seen that achievements made by the New Development Bank, and we now have an alternative bank that deals with issues.

We are now seeing the Global South asserting itself gaining confidence and really negotiating with the Global North as equals.

策划：于晓娜    

监制：施诗

责任编辑：和佳

记者: 施诗 李依农 实习生梁旭琦

拍摄：李依农

制作：蔡于恬 李群

新媒体统筹：丁青云 曾婷芳 赖禧 黄达迅

海外运营监制: 黄燕淑

海外运营内容统筹: 黄子豪 

海外运营编辑：庄欢 吴婉婕 龙李华 张伟韬

出品：南方财经全媒体集团

Tags： 张伟 上海 lv st last

文章版权声明：除非注明，否则均为万象金融原创文章，转载或复制请以超链接形式并注明出处。