Cape Town: Cabinet has received a briefing on the outcomes of the recent successful State Visit to the People’s Republic of China that was led by President Cyril Ramaphosa. President Ramaphosa undertook this visit and attended the Forum on China-Africa Cooperation Summit (FOCAC) in Beijing from 2 to 6 September 2024, following an invitation from President Xi Jinping.
According to South African Government News Agency, China remains South Africa’s largest trading partner globally, while South Africa stands as China’s top trading partner in Africa. The total bilateral trade between the two nations increased from R614 billion in 2022 to R692 billion in 2023. An agreement was made to restructure trade towards more value-added manufactured products, with a particular focus on exchanging a list of 100 such products from South Africa that China will consider importing.
Furthermore, South Africa secured cooperation from China on three value chains concerning decarbonisation, digitalisation, transport, and logistics.
This collaboration is set to advance investments in electric vehicles, battery manufacturing, renewable energy storage, and in designated Special Economic Zones and Industrial Development Zones, as stated by Minister in The Presidency, Khumbudzo Ntshavheni, during a media briefing in Cape Town.
Key Chinese investors in both Shenzhen and Beijing showed interest in either expanding their current investments or initiating new ones in South Africa. During the State Visit, six Memoranda of Understanding (MoUs) were signed. These MoUs aim to foster cooperation between China’s entities and South African companies and Development Finance Institutions to enhance industrial development in South Africa, promote technology cooperation to advance decarbonisation, and bolster investments in the renewable energy sector.
The agreements made at both government and private sector levels are expected to expedite investments that support green and low-carbon transformation, encourage innovation in industrial activities, and at
tract investment in Special Economic Zones and Industrial Parks. Minister Ntshavheni was briefing members of the media on the outcomes of the Cabinet meeting held on 6 November 2024.