Addressing The Nation - Letter From The President

Relations Between China and South Africa Enter A New Era of Opportunity

By Fiona Wakelin

On 9 September, His Excellency, Cyril Ramaphosa, penned a letter to the nation which focused on his recent trip to Beijing - and relations between China and South Africa. The South African delegation recently returned from attending the Forum on China-Africa Cooperation (FOCAC), which brought together heads of state and government from across the continent.

At the summit, President Xi announced ten partnership actions that China would take together with African countries to support the modernisation of their economies. These actions cover areas like trade, industrial development, agriculture, health and infrastructure.

The visit to Beijing afforded the opportunity for His Excellency to meet several Chinese companies that operate in South Africa or are looking at opportunities in our country. Hisense was one of these manufacturers. After establishing a R350-million manufacturing plant in Atlantis Industrial Park in Western Cape just over 10 years ago, Hisense is now exporting to other African countries and the United Kingdom, having created more than 1 000 direct and over 5 000 indirect jobs in Atlantis.

“Hisense is just one of a growing number of Chinese companies that are expanding their footprint in South Africa, bringing much-needed investment and jobs. I met with other Chinese companies that are looking to invest in South Africa, particularly in the areas of energy, infrastructure, technology and advanced manufacturing.

“During the state visit, China and South Africa agreed to upgrade our relationship to an All-Round Strategic Cooperative Partnership in a New Era. This signifies the strengthening of the political, economic and social ties between the two countries. China is our largest trading partner, having overtaken the European Union in 2023. However, there is an imbalance in the structure of our trade. South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China.

“During our discussion, Chinese President Xi Jinping expressed his support for the development of South Africa’s manufacturing capacity and to receive greater volumes of finished goods from South Africa. President Xi has committed China to open its markets to more South African products and would seek to further broaden the frontiers for Chinese investment in the South African economy,” – H.E. Ramaphosa.

President Ramaphosa reports that there is also great potential, and interest, for Chinese private commercial firms, state-owned enterprises and banks to invest in South Africa’s infrastructure build programme, which aligns with the plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks. The African Continental Free Trade Area (AfCFTA), which will provide access to a market of over 1.3 billion people, provides an even greater incentive for investment by China and other countries in Africa’s manufacturing capacity.

“The strengthening of ties with major trading partners like China continues to yield benefits for the South African economy and people. The Hisense investment in Atlantis is a case in point, with many other companies following its lead. It is clear that relations between South Africa and China have entered a new era of opportunity. Our visit has strengthened trade and investment ties and cemented our shared commitment to grow our economy, create jobs and advance prosperity for the people of our two countries,” – President Ramaphosa.