Thebe Mabanga
South African and Chinese companies have an opportunity to collaborate in emerging industries such as renewable energy, logistics and the digital economy.
This was the message from Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, who spoke at the China–South Africa Trade and Investment Promotion Conference which preceded the 9th China-South Africa Trade Fair in Midrand, Johannesburg.
“The South Africa and China relationship represents a significant example of South-South cooperation, characterized by deep economic ties and a growing strategic partnership.” Godlimpi said.
“South Africa’s longstanding strategic trade and investment partnership with China has played a significant role towards South Africa’s economic growth, job creation, and overall development.” the deputy minister said of an economic relationship that spans more than two decades.
China is now South Africa’s largest trading partner and Godlimpi cited figures from the FDI markets which show that inward Fixed Domestic Investment from China to South Africa between 2003 to 2025 reaching over US$ 13.14 billion while the FDI outflow to China from South Africa stood at US$ 7.8 billion over the same period.
Godlimpi noted that Chinese companies Chinese companies operate across various traditional sectors in South Africa, including automotive where SA has seen a proliferation of Chinese companies including BAIC, Cherry and GWM, technology and electronics where the likes of Huawei fly the flag and mining and resources as well as new energy and infrastructure.
Godlimpi then pointed to growth areas such as renewable energy, green hydrogen, energy storage, infrastructure, logistics, and the digital economy as areas of increased co-operation.
The event was marked by signing of a Memorandum of Understanding (MOU) between South African and Chinese companies.
The event was addressed by Zhang Chaoyang, Chairman of SA China Economic and Trade Association who gave an insightful presentation on the City of Jinhua, in the Zhejiang Province in Eastern China.
The region is a key point of entry of South Africa’s goods into China and is the country’s top exporting region for the last ten years, accounting for a tenth of all China’s exports.
It has a rich history and culture, including a 10000-year-old rice planting site in Shangshan and the 500-year-old Wu Opera which this week performed in Johannesburg and Buffalo City.
The city also has the Yiwu International Trade Market, a vast shopping hub known as the supermarket of the world.
“We are now developing solar energy, new energy vehicles, bio medicine and other emerging industries.” said Chaoyang.
Godlimpi concluded by noting that “the renewed focus on balancing the trade relationship, attracting further Chinese investment in manufacturing, and capitalising on the opportunities presented by the African Continental Free Trade Area (AfCFTA) will be vital to shaping a more equitable and mutually beneficial future. The emphasis is shifting towards deeper industrialisation and green industries in South Africa.”
Godlimpi has urged Chinese companies to participate in the South African Investment Conference, scheduled for March next year.
The conference, first held in March 2023, has since secured investment commitments totaling R1,5 trillion.
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