Beijing : On Thursday Deputy President Paul Mashatile addressed South Africa-China Investment Forum, emphasizing the importance of strengthening economic ties between South Africa and China, calling for increased collaboration to address existing trade imbalances.
Speaking in the heart of Beijing, Deputy President Mashatileexpressed gratitude to the event’s hosts for organizing the forum, which aims to bolster bilateral relations and foster mutual economic growth. He highlighted the ongoing participation in the third China International Supply Chain Expo (CISCE) as an opportunity to showcase advancements in supply chain management and to reflect on the evolving strategic partnership between the two nations.
“Our long-standing relationship, established since diplomatic ties began in 1998, is grounded in a shared vision for a prosperous future,” Mashatile stated. He noted that both countries, as members of the BRICS economic partnership alongside Brazil, Russia, and India, are well-positioned to collaborate within various international platforms including the United Nations and the G20.
Despite the positive strides made in trade and investment, Deputy President Mashatile acknowledged challenging aspects of the relationship, particularly a significant trade deficit favoring China. He revealed that South Africa’s trade deficit with China has escalated from less than USD 1 billion in the late 1990s to USD 9.71 billion by 2023, resulting in a cumulative capital outflow of over USD 114 billion since the Forum on China-Africa Cooperation (FOCAC) began.
Mashatile stressed the need for urgent action to address these imbalances by developing a more coordinated approach to trade. “We must tackle tariff and non-tariff barriers and work collaboratively to enhance access to the Chinese market,” he urged. He called for expanding South Africa’s export portfolio and encouraging value-added exports to create a more balanced trade relationship.
The Deputy President pointed out the many benefits that have arisen from Chinese investments in South Africa, spanning sectors such as banking, manufacturing, and renewable energy. Major investments, including the Industrial and Commercial Bank of China’s acquisition of a 20% stake in Standard Bank for USD 5.5 billion and the establishment of an industrial park by Hi-Sense, underscore the opportunities for collaboration.
“With ongoing deepening of South Africa-China relations, we invite Chinese businesses to explore new avenues for investment in renewable energy, infrastructure, and pharmaceuticals,” Mashatile stated, outlining potential sectors for future collaboration. He specifically mentioned the establishment of special economic zones (SEZs) as an attractive opportunity for foreign investors.
Mashatile highlighted South Africa’s ambitious infrastructure investment plan aimed at driving projects across multiple sectors, including energy and transport. He noted that significant reforms in the rail sector are underway, including the development of a National Rail Master Plan that will enhance the competitiveness and efficiency of freight and passenger transport.
The government is making strides in the energy sector, with a focus on low-carbon development and the diversification of energy sources. “We are actively seeking investments to build renewable energy capacity, with a pipeline of over 130 confirmed projects aimed at generating approximately 22,500 MW of electricity,” he explained.
Deputy President Mashatile encouraged Chinese businesses to explore opportunities in South Africa’s growing pharmaceutical sector and to take advantage of the African Continental Free Trade Area, which promises access to a market of over 1.3 billion people.
“Let us collaborate to unlock the immense potential across South Africa’s diverse sectors,” Mashatile urged, affirming that together, both nations could pave the way for economic prosperity and make a meaningful impact on global growth.
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