Deputy President Paul Mashatile Speaks at South Africa-China Economic and Trade Forum
CHANON LECODEY MERRICKS ONLINE_EDITOR
Remarks by the Deputy President of the Republic of South Africa, His Excellency Mr Shipokosa Paulus Mashatile, at the South Africa-China Economic and Trade Forum, Mount Nelson Hotel, Cape Town, Western Cape Province
Programme Director, Ms Lin Honghong, Director General of CCPIT
Vice President of the People’s Republic of China, His Excellency Mr Han Zheng;
Deputy Minister of Trade, Industry and Competition of the Republic of South Africa, Ms Alexandra Abrahams, Deputy Minister of International Relations, Ms Thandi Moraka and all Deputy Ministers here present;
Assistant Minister of the Ministry of Commerce of the People’s Republic of China, Mr Zhang Li and all Assistant Ministers here present;
Chairman of the China Council for the Promotion of International Trade, Mr Ren Hongbin;
Business Leaders from China and South Africa;
Distinguished Guests;
Ladies and Gentlemen,
It is a privilege to address this Economic and Trade Forum, convened in the wake of the 9th Session of the Bi-National Commission, which I had the honour of co-chairing yesterday with His Excellency Vice President Han Zheng.
The conclusion of the Commission’s work marks a significant milestone in South Africa’s journey of a thousand miles with China. This is a journey that began with a single step in the year 2000, when our two nations agreed to establish the Bi National Commission on the founding principle of equality, mutual respect, and shared progress.
Together, we have built bridges of trade and investment, strengthened the pillars of cooperation, and opened doors of opportunity for our peoples.
We have also expanded sectoral collaboration in broad areas of tourism, mineral resources, environment, science & technology, education, and culture.
Economic cooperation remains central to government collaboration. Efforts are focused on restructuring trade to enhance value-added exports to China.
This has positioned South Africa as China’s largest trade partner in Africa and its top global partner. As a result, bilateral trade grew by 6.4%, rising from USD 34.2 billion in 2024 to USD 36.4 billion in 2025.
The work that we have done as Governments has also paved the way for China to invest USD8.11 billion in 103 FDI projects, creating a total of 5 694 jobs in South Africa.
On the other hand, there is a group of South African companies that collectively invested USD 689 million into China in the health, ICT, financial services, manufacturing, and services sectors.
However, there is still much work to be done to diversify our exports from raw commodities and to strengthen South Africa’s industrial base in electric vehicle and battery manufacturing.
South Africa is keen to draw investments across various sectors, particularly in mineral beneficiation, the hydrogen economy & clean energy, ICT technology, textiles and leather.
Over and above what we have achieved in our government deliberations, the signing of the Framework Agreement for the China Africa Economic Partnership Agreement (CAEPA) will cement South Africa’s status as an attractive sourcing destination.
This agreement will effectively lower costs for Chinese companies importing South African goods while opening new avenues for our industries to expand their reach and competitiveness. In many ways, CAEPA is the natural outgrowth of the founding principle of our BNC.
Deputy Minister Abrahams reported on the advancements regarding the Early Harvest Agreement aimed at ensuring that South African exports destined for China will receive permanent zero-tariff treatment, contingent upon consultations with domestic trade partners in the Customs Union.
We also believe that the CAEPA solidifies South Africa’s status as a preferred destination for Chinese investment. Duty free access for South African exports not only makes it more profitable for Chinese firms to source semi processed and finished goods from South Africa, but it also makes the prospects of building local processing plants more viable.
This is aptly demonstrated by the incoming delegation who operate in the sectors of Biotechnology, Renewable Energy, Food and Beverage, Engineering and Construction, Oil and Gas, Utilities as well as banking and finance. These companies are regarded as innovative leaders in their sectors. We welcome that you have chosen South Africa as a home for your investment and that you are simultaneously investing in government supported priority sectors and initiatives.
For those considering South Africa for the first time, be assured that our nation offers exponential returns. Companies such as Hi-Sense have not only expanded their product lines here but have also unlocked access to the African market of 1.4 billion people. Original Equipment Manufacturers, through their investments, have discovered that South Africa is more than a gateway; it is a launchpad into continental opportunity, innovation and growth.
Ladies and Gentlemen,
South Africa opportunities that are available for investment include but are not limited to agriculture, energy sector, mineral beneficiation and infrastructure.
Our agriculture and agro processing sectors showcase South Africa’s fertile land and diverse produce, which can ultimately be transformed into high value exports to China and other regions.
By deepening cooperation in this sector, we not only strengthen food security but also create jobs across rural communities, ensuring that prosperity reaches every corner of our nation.
Of critical importance is investment in mineral beneficiation and infrastructure development. South Africa’s mineral wealth is widely recognised, but our goal is to go beyond raw exports by processing minerals, adding value, and developing the infrastructure that supports industrial growth.
Here, Chinese investment and technology can help us unlock the full potential of our resources, while building sustainable industries that will last for generations.
In the energy sector, we see great potential in renewable energy and baseload electricity collaborations. South Africa is committed to moving toward a greener future, and with China’s expertise, we can accelerate the deployment of solar, wind, and storage technologies. Together, we can provide a reliable energy supply while fulfilling our climate commitments.
The automotive sector remains a key part of our industrial base. By expanding manufacturing and parts production, along with investments in electronics and high-tech industries, we can position South Africa as a centre for next-generation vehicles and innovation.
This is not just about vehicles, but also about creating an ecosystem of suppliers, innovators, and skilled workers who will help drive our economy forward.
Perhaps the most transformative is the hydrogen economy. South Africa has the potential to become the lowest-cost producer and exporter of green hydrogen by leveraging our abundant renewable resources. With strategic partnerships, we can lead the way into a new energy future, positioning our country as a global leader in clean fuels and sustainable industrialisation.
Finally, Ladies and gentlemen, our Special Economic Zones and Industrial Parks provide the platforms to localise production, attract investment, and foster innovation. These zones are designed to act as catalysts, bringing together infrastructure, incentives, and skilled labour to develop competitive industries capable of thriving in global markets.
There will be presentations in the technical sessions that will help to guide you in your investment journey.
What South Africa offers you is political stability, a legal environment that safeguards and protects your investments, world-class infrastructure.
Lastly, all of this will be bolstered by a catalytic partnership agreement that, once finalised, will make South Africa your most indispensable trade and investment partner.
We firmly believe that this forum serves as a platform for aligning Government strategies with private sector engagement. The issues discussed in our diplomatic and technical sessions are expected to be implemented by private sector players, leading to job creation, industrialisation, and shared prosperity. Central to this collaboration are opportunities that directly address our shared priorities.
Today, we have an opportunity to energise momentum, to turn the commitments made here into real action.
Let us take this moment to ensure that our collaboration not only brings prosperity to both our nations but also makes a meaningful contribution to Africa’s broader development agenda.
Together, we can create a future defined by resilience, inclusivity, and shared success.
I thank you. Xiè Xiè
Deputy President Paul Mashatile
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