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Speaker 1: Seven Milton the Africa Report. Right, let's climb into the

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Speaker 1: news cycle. As the global economy faces uncertainty and conflicts

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Speaker 1: continue to disrupt trade, Africa is on the brink of

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Speaker 1: a major opportunity. Starting on the first of next month,

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Speaker 1: that's May one, African exports to China will enter the

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Speaker 1: world's second largest consumer markets duty free. So this is

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Speaker 1: quite something. This is thanks to a landmark zero tariff

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Speaker 1: policy announced by China's President Xijingping on paper, this opens

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Speaker 1: doors to China's three point five trillion dollar market. On

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Speaker 1: the line is Hiniko Scala Kamp, who's the Group of

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Speaker 1: Chief Executive Officer at HLBCBS. Aniko, Hi, good morning, welcome

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Speaker 1: to seven oh two.

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Speaker 2: Morning morning. Thanks, thanks for the opportunity.

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Speaker 1: Great to have you with us. What does this mean

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Speaker 1: for South Africa? Anyko? I mean, if you think about it,

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Speaker 1: what does this mean for our country? We can only benefit.

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Speaker 2: It's it's now with with without a doubt. We obviously

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Speaker 2: have a strong manu manufacturing industry. Uh. There's there's also

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Speaker 2: many businesses in South Africa that they do business with China,

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Speaker 2: so so there's there's a great opportunity for them to

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Speaker 2: enter this market without any duties.

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Speaker 1: Yeah, a lot of people. And we saw one or

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Speaker 1: two WhatsApps earlier on saying you have but China's owned,

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Speaker 1: you're only going to benefit. I would think not. I

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Speaker 1: would think that if you're looking at three point five

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Speaker 1: trillion dollars, that's the market there. This could be massive

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Speaker 1: for South Africa.

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Speaker 2: Yes, yes, it's without the doubt. It obviously depends on

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Speaker 2: how clever the businesses operate, and it's it's also going

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Speaker 2: to be about relationships into the into the right sexors

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Speaker 2: in China. But it's definitely an opportunity for for our

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Speaker 2: businesses to take, especially if you look at the at

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Speaker 2: the low growth rates we currently have in the country,

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Speaker 2: there's an opportunity for them to increase their their their

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Speaker 2: revenues and profits.

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Speaker 1: Yeah, what key markets then are set to prosper I mean,

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Speaker 1: what are we looking at you?

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Speaker 2: It's it can be it can be anything where we

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Speaker 2: could be competitive. But I would say it's going to

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Speaker 2: be more our items that you can export to China.

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Speaker 2: So it's going to be potentially more manufacturing or engineering

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Speaker 2: or any specialized products that that we manufacture that's currently exported.

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Speaker 1: Could we perhaps then see a change as well where

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Speaker 1: we have investments in our country because the Chinese, they

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Speaker 1: could turn around. They're doing this for the car market

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Speaker 1: at the moment, by the way, the Chinese could turn

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Speaker 1: around and say, Okay, we're actually going to invest, we

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Speaker 1: can have factories in your country. We're going to grow

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Speaker 1: our industry in your country. You then export to us

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Speaker 1: and every body wins in the steel.

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Speaker 2: Yes, I think that's definitely going to be on the court.

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Speaker 2: As you would also know, the a majority shareholding in

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Speaker 2: Standard Bank is owned by a Chinese, Chinese firm of investors,

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Speaker 2: So I do think they're going to stimulate themselves and

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Speaker 2: bring the investment and maybe bring some skills on efficient

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Speaker 2: manufacturing processes. So I think if we we can potentially

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Speaker 2: work together work them, I think they could be a huge,

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Speaker 2: huge benefit for our manufacturing industry.

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Speaker 1: Yeah. Absolutely, if you have a look at what's happened

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Speaker 1: in the world, Henker and I suppose if you look

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Speaker 1: at US President Donald Trump, but he's turned around and

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Speaker 1: he has slept tariffs on everybody, do you think perhaps

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Speaker 1: he's just presented the rest of the world with a

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Speaker 1: beautiful opportunity to say come and do business with us instead.

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Speaker 2: Uh? Yes, yes, it does obviously in terms of turmoil,

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Speaker 2: then you must always look at other solutions. So he

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Speaker 2: basically just forced all the other countries to look at

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Speaker 2: other opportunities. And I do think that that that this

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Speaker 2: was potentially spirit eddy by the Chinese. Uh yeah, yeah,

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Speaker 2: I think that we were looking at potential investments. Remember

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Speaker 2: that from a Chinese perspective, that also need to put

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Speaker 2: their investment somewhere, and I think it's also becoming more

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Speaker 2: difficult for them worth worth the US. So I think

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Speaker 2: that that lead to this decision.

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Speaker 1: Yeah, but Africa is open game because at the moment,

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Speaker 1: if you have a look at investment in Africa, it's

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Speaker 1: Chinese and it's Russian. Even the French have been pulling

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Speaker 1: out somewhat as well. So I suppose this is just

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Speaker 1: an open market for the taking.

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Speaker 2: Yes, there's there's a it's a common fact that the

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Speaker 2: Chinese invest all over Africa. Obviously, Africa is also strong

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Speaker 2: in the in the mining sector, so the Chinese also

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Speaker 2: like to invest into into into mining companies and they've

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Speaker 2: been involved in building some port like the one one

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Speaker 2: in Mozambique. And Africa is the continent where you will

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Speaker 2: get the most growth in the next the next twenty

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Speaker 2: years because it's obviously a developing market. So it is

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Speaker 2: a hugue opportunity for anybody to invest in Africa. Obviously

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Speaker 2: Africa does come of its risks, but you can manage

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Speaker 2: so less. You just need to get some good advice

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Speaker 2: when you when you into a specific market.

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Speaker 1: Yeah, the only thing is we do need to get

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Speaker 1: our conditions right here for that investment. I'm thinking about Escomb,

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Speaker 1: I'm thinking about transcends and you see with Escomb with

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Speaker 1: the smelters at the moment, they have this massive negotiation

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Speaker 1: underway to make sure that is are right and some

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Speaker 1: smelter's face closure. We would need to get that right,

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Speaker 1: I would think.

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Speaker 2: Yes, it's about a doubt. I'm sure. I'm sure there's

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Speaker 2: there's already discussions happening between the government of China and

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Speaker 2: the government of South Africa. Uh Is this does thats

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Speaker 2: present a great opportunity for for our country. But that's

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Speaker 2: you know that is are very important infrastructure that needs

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Speaker 2: to be in place. Yeah, I always, I'd always there's

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Speaker 2: not gonna have a lot of a lot of benefit

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Speaker 2: for for for the country.

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Speaker 1: Yeah. Absolutely, the devil's in the detail as well. Any

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Speaker 1: co com Thank you so much. Group Chief executive Officer

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Speaker 1: at h l B CBS Group, Thanks so much for

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Speaker 1: joining us on seven or two breakfast