President Cyril Ramaphosa said yesterday that South Africa was planning to move from being a large importer of manufactured products to being a major exporter.
Speaking at the South Africa-China Business Forum meeting that took place on the margins of a state visit and the Forum on China-Africa Co-operation (FOCAC) Summit yesterday, he said that they had seen this happen in South Africa’s automotive industry.
“Chinese companies will find there are innumerable business opportunities to manufacture products in South Africa using our excellent industrial experience and capabilities,” he said.
Ramaphosa said South Africa had ambitious plans to modernise its infrastructure by investing in the expansion of ports, rail and road networks. He also said they were on a path to revolutionise the local energy sector in pursuit of low-carbon, climate-resilient development.
“We are actively seeking investment in the energy sector with a particular focus on renewables and green hydrogen,” Ramaphosa said.
He said China had a proven track record in developing innovative renewable energy solutions and together, the two countries could create sustainable and environmentally friendly energy solutions that benefited both countries.
“By working together, we can create value chains that are mutually beneficial, leading to job creation and economic growth. There is also vast untapped potential in technology,” he said.
“South Africa and China can collaborate to promote innovation, technology transfer and skills development. By leveraging our respective strengths and exploring new avenues of collaboration, we can create mutually beneficial partnerships. Our focus must now be on building stronger business relationships, promoting cultural exchanges and tourism, and creating a favourable business environment.”
The president said the value of such co-operation extended beyond these two countries as the growth of the South African economy would support the success of the African Continental Free Trade Area, which opens access to a market of over 1.3 billion people.
“African economic integration is fast becoming a reality. This creates enormous opportunities to expand production on the continent and to stimulate much greater economic activity,” he said.
Professor Irrshad Kaseeram, an economist at the University of Zululand, said trade with China was critical as they are global players with strategic advantage in electric vehicles and solar power in particular.
“However, their trade with us involves primary commodities and agri products,” Kaseeram said.
“If we are to add value to output and increase skills level to transcend the middle income trap that we have been stuck in for the last three decades, our trade relations must include setting up manufacturing and processing plants here in SA as well as training programmes in the STEM areas.”
Sihle Ngcamu, who has been appointed CEO of Trade and Investment KwaZulu-Natal and who attended the 2024 South Africa-China Presidential Business Forum, said they were encouraged by the sustained growth in trade and investment between South Africa and China as evident in the 55% increase in South African exports to China and a 58% increase in imports as measured from 2019–2023, underscoring the importance of this economic relationship.
“China remains South Africa’s leading trading partner, contributing to the R225 billion in exports to China between 2019–2023 and R404bn in imports in 2024, with KwaZulu-Natal playing a critical and important role in this partnership,” Ngcamu said.
“The strong demand for South African raw materials and the diverse range of imports, such as electrical machinery and nuclear reactors, highlight the strategic importance of this trade relationship.”
He added that the R17bn in foreign direct investment from China since 2019, creating more than 2 500 jobs, highlighted the positive impact of this relationship on South Africa’s economy and the opportunities ahead, contributing positively to job creation, thus helping in the growth and prosperity of the nation.
“This partnership is not only a testament to the mutual benefits derived from trade and investment, but also a clear indication of the opportunities that lie ahead for KwaZulu-Natal and South Africa as a whole.”
BUSINESS REPORT