President Cyril Ramaphosa says the relations between South Africa and China have entered a new “era of opportunity”.
The President was addressing the nation through his weekly newsletter following an official State Visit to the People’s Republic of China last week.
“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.
“The strengthening of ties with major trading partners like China continues to yield benefits for the South African economy and people. 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,” he said.
Trading partners
The President revealed that during the visit, Chinese President Xi Jinping expressed that he would like to see more finished goods from South Africa entering Chinese ports.
The Asian country is South Africa’s largest trading partner but, President Ramaphosa pointed out, 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,” President Ramaphosa said.
The President added that government is buoyed by potentially increased cooperation between the two countries in “pursuit of low-carbon, climate resilient economic growth” and infrastructure.
“For example, South Africa has investment opportunities in the electric vehicle sector, renewable energy, green hydrogen and energy storage – and China has a proven track record in developing innovative solutions in these areas.
“There is also great potential, and much interest, for Chinese private commercial firms, state-owned enterprises and banks to invest in our country’s infrastructure build programme. This aligns with our plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks,” he said.
Beyond our shores
President Ramaphosa emphasised that enhanced relations between China and South Africa can bring opportunities beyond the two countries.
While on the State Visit, the President attended the Forum on China-Africa Cooperation (FOCAC) where the African Continental Free Trade Area (AfCFTA) and its potential were discussed.
“The [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.
“This was underlined during the FOCAC summit attended by more than 50 African countries, where 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.
“At a time when African economies are growing closer together, China’s technological capabilities can support Africa’s industrialisation and enable the continent to export more than just raw commodities,” the President said.
