ChinaAfrica Corporation Forum Southern African Transport Conference POTENTIAL

China-Africa Corporation Forum (Southern African Transport Conference) POTENTIAL OPPORTUNITIES ON R&D AND INNOVATION LINKING TO THE BELT AND ROAD INITIATVE Professor Baojin Zhao (Ph. D. ) (UNISA/Rhodes/Worley. Parsons) www. advisian. com 12 July 2017

Outline 1 1. Introduction 2. Background (OBOR) 3. OBOR: The Chinese Dream 4. Concept 5. Leadership and Management 6. Finance and Economics 7. How does it fit to Africa 8. R&D and Innovation Opportunities 9. Closing Remarks Advisian / 2

2. Background: The One Belt, One Road (OBOR) Xi Jinping – The Chinese Dream • How did it start? • 2008 - Neville Mars, Adrian Hornsby, and the Dynamic City Foundation published "The Chinese Dream – a society under construction” • 2010 - Helen Wang published her first book “The Chinese Dream” • 2012 – President Xi became the Chinese Leader, formally become the policy of his leadership • 2 x 100 yrs • A "moderately well-off society" by 2021, the 100 th anniversary of the Chinese Communist Party, • China becoming a fully developed nation by about 2049, the 100 th anniversary of the founding of the People’s Republic Thomas Frieman, New York Times Advisian / 3

3. OBOR: The Chinese Dream The strong supplement of the government’s diplomacy “Resonance” of the initiatives among related countries can be strengthened through regional cooperation Enhance: • Policy communication • Road links • Trade ties • Currency circulation • People-to-people exchanges • Infrastructure • New media techniques • Cultural exchange All in all, pushing forward the construction of “One Belt and One Road” is of great significance for building a moderately prosperous society and realising the “Chinese Dream” of great national rejuvenation. Public diplomacy will play an indispensable role in the implementation of the initiatives Advisian / 4

4. Concept: One belt, one road One Belt, One Road (OBOR)- Development strategy and framework Background • Silk Road Economic Belt (SREB), through Central Asia, West Asia, the Middle East, and Europe, Africa • 21 st Century Maritime Silk Road (MSR), Southeast Asia, Oceania, and North Africa, through several contiguous bodies of water – the South China Sea, the South Pacific Ocean, and Indian Ocean, Africa • Also known as The Belt and Road (B&R), One Belt, One Road (OBOR) or the Belt and Road Initiative + 1 continent Advisian / 5

3. Leadership and management: Steering Committee Advancing the Development of OBOR in late 2014. 2. Directly report to the State Council of the PR China 3. Composed of · Vice-Premier Zhang Gaoli, · Wang Huning · Wang Yang · Yang Jiechi 1. Advisian / 6

4. Economic and Finance: OBOR Support by financial institutions 1. Silk Road Fund: USD$40 billion • State backed investment fund • Headquarters: Beijing • Karot hydropower project-USD$1. 65 billion; 9. 9% Yamal LNG project 2. AIIB - Asian Infrastructure Investment Bank $8 trillion 3. BRICS bank - New Development Bank: • Headquarters: Shanghai • USD$100 billion • Karot hydropower project-USD$1. 65 billion; 9. 9% Yamal LNG project 4. Cadfund: $5 billion, initiated from USD$1 billion 5. China. LLat. Am Production Capacity Fund: USD$30 billion 6. China-Africa Industrial Capacity Cooperation Fund Co Ltd (CAICCF): 30 billion by People’s Bank and China Foreign Exchange Reserves and Import-Export Bank: USD$10 billlion 7. China commercial banks Advisian / 7

4. (Cont. ) Economic and Finance: Further Support Further supported by and through parastals and Chinese companies 1. Mining 2. Infrastructure such as railway, habour 4. Power 5. Manufacture 6. Agriculture 6. Export and import Provide up to 15% funding Help raising funding from banks Bring business partner Advisian / 8

5. How does Africa fit? 1. Africa is considered to be part of the framework of the OBOR+ (One Continent) · As strategic partnership with China · Important to each other · MOU signed between African Union (54 countries) and China · Three network, one industrilisation − Railway network − Roads − Regional airports − Health and Medicine 2. China can not forget and avoid Africa (54 countries, historic links, political support, wealthy mineral resources and lacking of infrastructure) Advisian / 9

6. China Africa Exchange: Summit and Programs 1. The Forum on China–Africa Cooperation (FOCAC) 2. BRICS summit 3. China South Africa bilateral research program (NRFs) 4. Confucius Institutes 5. Africa-China Business Association 6. Many informal exchange!!! 3 1 2 4 Advisian / 10

7. R&D Opp. : Human Capital & Science, Technical and education (continued) 1. Science parks like silicon valley type 2. African Talent Training Progamme (30 000 personnel) 3. 18 000 Bursaries 4. 40 Confucius Institutes 5. African studies 6. Training Workshops Highlights: Human Resource and Skills Development People to people exchanges, e. g. cultural tourism Advisian / 11

8. (cont. ) R&D opp. : Critical Areas 1. Industrialisation 2. Infrastructure development such as road, railway etc. 3. Development of SEZ’s and Industrial Parks 4. Developing the Energy sector 5. The Green and Blue Economies 6. Development Finance 7. Peace and security as a prerequisite for sustainable development Zhang Huarong with Prime Minister

9. Closing Remarks 1. Chinese has the money to invest in Africa for R&D 2. Easy to get funding though the OBOR such as 15% funding and raising funding capability 3. SEZ/Science parks will create a lot of job opportunities and innovation technology 4. Training and cultural exchange is important to Africa 5. Take the language opportunity, English, French etc. 6. IT 7. Tourism (safety and Security) and student host 8. Exchange for scholars and technologists 9. Africa has become a hot spot for research and development!!! Advisian / 13

? Questions? Advisian / 14

DISCLAIMER This presentation has been prepared by a representative of Advisian. The presentation contains the professional and personal opinions of the presenter, which are given in good faith. As such, opinions presented herein may not always necessarily reflect the position of Advisian as a whole, its officers or executive. Any forward-looking statements included in this presentation will involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies—many of which are outside the control of, and may be unknown to, Advisian and all associated entities and representatives make no representation or warranty as to the accuracy, reliability or completeness of information in this document and do not take responsibility for updating any information or correcting any error or omission that may become apparent after this document has been issued. To the extent permitted by law, Advisian and its officers, employees, related bodies and agents disclaim all liability—direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Advisian and/or any of its agents)—for any loss or damage suffered by a recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. Advisian / 15