PwC launches the China Desk

Multinational professional services firm PwC will launch a China Desk in South Africa through its local firm tomorrow in an effort to assist and advise Asian business locally and internationally that wish to make a footprint into South Africa and Africa.
 

Thomas Magill, PwC Director and Jenny Chen, PwC Associate Director in Financial Services and the representatives of PwC China Desk, say the initiative is being launched to facilitate joint ventures and business opportunities between companies in China, South Africa and the rest of Africa.
 

“China is one of the economic powerhouses of the world and trade and investment between Africa and China is significantly on the rise,” says Magill.
 

Earlier this year, South Africa joined the Brazil, Russia, India and China (BRICS) block of emerging economies. “Since 2009 China is South Africa’s largest trade partner with bilateral trade reaching US$16 billion in 2010, and it is anticipated that there will be more interaction between these countries, with China playing an instrumental role in driving regional integration into Africa,” says Magill.
 

South African Deputy President Kgalema Motlanthe departed on a state visit to China earlier this week, in an effort to strengthen political and economic ties between the two countries.
 

In 2010 South Africa and China signed the Beijing Declaration on the Establishment of a Comprehensive Strategic Partnership. The agreement confirms the two countries’ commitment to encouraging trade in manufactured value-added products and encouraging business in South Africa’s manufacturing industry.
 

China also dominates the biggest share of trade with emerging economies on the African continent at 38 percent, according to a recent report published by the African Development Bank. This was followed by India (14.1 percent); South Korea (7.1 percent) and Brazil (7.1 percent).
 

“China is hungry for resources to fuel its fast growing economy,” says Magill.
 

The PwC China Desk will offer business solutions to companies looking to do business in South Africa and on the African continent. Magill says that the initiative is in line with PwC’s strategic plans and vision to expand its reach across Africa and offer clients an integrated solution to their businesses.
 

“Establishing a PwC China Desk in South Africa will assist us in facilitating cross-border activities with Chinese and South African companies,” he says. “This initiative clearly demonstrates PwC’s extensive network and expertise to continue offering companies services, internationally and locally.”
 

In order to address the needs of clients, the PwC China Desk will be staffed with Mandarin speaking professionals to provide expertise and specialised skills across PwC Southern Africa, China, Hong Kong, Taiwan and Singapore.
 

A wide range of products and services will be offered to Chinese companies wishing to explore business opportunities in South Africa, and to South African companies wanting to invest in China.
 

These include:

  • Mergers and acquisitions, corporate finance and advisory services;
  • Financial reporting and compliance services;
  • Tax planning and compliance;
  • Audit and assurance services;
  • Risk management and regulatory services;
  • Business reviews and performance improvement.
  • “We will act as the main contact point for Chinese clients seeking growth opportunities to improve their position in South Africa and Africa, and to organise and co-ordinate expertise across the PwC Africa network needing assistance,” says Chen.

Chen points out that the Chinese are making considerable investment commitments in Africa. She points to the recent US$1.32 billion deal between Johannesburg-based listed mining company Metorex and the Jinchuan Group. The transaction was one of the top five investments by the Chinese in a South African company to date. In 2008, the Industrial and Commercial Bank of China, one of China’s largest banks, acquired a 20 percent stake in Standard Bank. Magill says this highlights the increasing growth of Chinese finance in emerging markets beyond Asia.
 

“Chinese companies want to come to South Africa as part of their global expansion and investment plans, particularly in sectors such as mining and manufacturing and South African companies are looking into expanding opportunities in China,” says Chen.
“At PwC we are very excited about this initiative and we are looking forward to these new business opportunities in South Africa in the future,” says Magill.