President Cyril Ramaphosa has highlighted the significant advancements in South Africa’s relationship with China, emphasising a new “era of opportunity” for both nations.
PRESIDENT Cyril Ramaphosa has highlighted the significant advancements in South Africa’s relationship with China, emphasising a new “era of opportunity” for both nations.
The president made the statement in his weekly newsletter to the nation, following his participation in the Forum on China-Africa Cooperation (FOCAC) summit in Beijing and a state visit to China, where he and several Cabinet ministers engaged with Chinese President Xi Jinping and various Chinese companies.
Ramaphosa began by noting the successful outcome of the FOCAC summit, which gathered heads of state from across Africa and underscored the strengthening ties between the continent and China.
His visit to China, marked by discussions with key Chinese business leaders and a meeting with President Xi, served as a platform to reinforce and expand economic collaboration between the two countries.
A significant highlight of the visit was the interaction with Hisense, a Chinese electronics manufacturer with a substantial presence in South Africa.
Hisense, which established a R350 million manufacturing plant in Atlantis Industrial Park, Western Cape, has become a notable success story. Over the past decade, Hisense has grown into a prominent brand in South Africa, creating over 1,000 direct jobs and more than 5,000 indirect jobs. The company’s commitment to local sourcing and skills development, including a skills transfer programme between China and South Africa, exemplifies the mutual benefits of Chinese investment, said Ramaphosa.
He noted that the expansion of Chinese companies in South Africa extends beyond Hisense. During his visit, Ramaphosa met with various Chinese enterprises exploring investment opportunities in sectors such as energy, infrastructure, technology and advanced manufacturing. This increased interest reflects the broader trend of Chinese firms seeking to enhance their footprint in South Africa.
Ramaphosa stated that a pivotal outcome of the visit was the agreement to upgrade the bilateral relationship to an “All-Round Strategic Cooperative Partnership in a New Era”. This upgraded status signifies a deepening of political, economic and social ties between the two countries.
President Xi Jinping’s commitment to enhancing South Africa’s manufacturing capacity and increasing the import of finished goods from South Africa was a key aspect of these discussions. This move aims to address the existing trade imbalance, where South Africa predominantly exports minerals and agricultural products to China while importing manufactured goods.
Furthermore, Xi pledged to open Chinese markets to more South African products and to broaden Chinese investment in the South African economy. This commitment aligns with South Africa’s goals of fostering low-carbon, climate-resilient growth. Opportunities in sectors like electric vehicles, renewable energy, green hydrogen, and energy storage are particularly promising, given China’s expertise in these areas.
The potential for collaboration extends to infrastructure development as well, said Ramaphosa.
He noted that Chinese private firms, state-owned enterprises and banks have shown interest in investing in South Africa’s infrastructure projects, which align with the country’s modernisation plans for ports, railways and road networks.
This reciprocal investment flow will not only benefit South Africa but also enhance the co-operation between South African companies operating in China, which have reported valuable exchanges of expertise and technology.
Ramaphosa also highlighted the African Continental Free Trade Area (AfCFTA), which presents a substantial market opportunity for both Chinese and South African businesses.
The FOCAC summit further emphasised the importance of this regional integration, with Xi announcing 10 partnership actions to support Africa’s modernisation in trade, industrial development, agriculture, health and infrastructure.
Ramaphosa sees a promising future for South Africa-China relations, marked by increased trade, investment, and mutual growth. The deepened partnership and collaborative efforts between the two nations are set to drive economic advancement and prosperity for their people, showcasing the transformative potential of this enhanced bilateral co-operation, he said.
* Read President Cyril Ramaphosa’s full newsletter here
