Address by President Cyril Ramaphosa at the South Africa-China Business Forum on the occasion of the State Visit to China, Beijing, China
4 September 2024
Ambassador Wu Peng of the Peoples Republic of China,
Ambassador Siyabonge Cwele of the Republic of South Africa,
Business Leaders from China and South Africa,
Distinguished Guests,
Ladies and Gentleman,
It gives me great pleasure to address you today at this South Africa-China Business Forum.
This meeting is taking place on the margins of a State Visit and the Summit of the Forum on China-Africa Cooperation.
This Business Forum is an opportunity for engagements that will improve the trade and investment relationship between our two countries.
South Africa and China have vibrant, diverse and growing economies, with a wealth of opportunities for businesses wishing to expand into new markets.
China is currently South Africa’s largest trading partner.
Bilateral trade between China and South Africa has increased by a third since 2019.
South Africa exports mainly minerals and agricultural products to China, and imports largely manufactured products from China.
We are seeking to shift the structure of our trade profile and deepen our investment relationship.
South Africa has one of the most advanced and diversified economies on the African continent. It has a vibrant business environment and a strong regulatory framework. It has a diverse, competitive and well-regulated financial sector.
We are a country with enormous potential for growth and development.
We are advantageously placed for companies looking to expand into the rest of the African continent.
Many Chinese companies have invested in South Africa, and many others have shown a keen interest to invest.
There have been distinct moves into sectors such as manufacturing, banking, textiles, mining and agriculture.
Among the more significant investments was the investment by the Industrial and Commercial Bank of China, which bought a 20 percent stake in Standard Bank, one of the continent’s largest banks.
Chinese electronics manufacturer Hisense entered the South African market in 1997. It is now exporting to other African countries and the United Kingdom from its Atlantis plant in South Africa.
Other Chinese flagship companies, such as ZTE and Huawei Technologies, are also expanding their presence in South Africa.
Since the start of our investment drive in 2018, Chinese companies have made investment pledges to the value of over R18 billion in the manufacturing, resources, finance and agro-processing sectors. This is the equivalent of one billion US dollars.
We express our appreciation for these commitments and for China’s continued support to our investment drive.
In the last six weeks, a number of Chinese companies have increased investments to support the expansion of their operations.
These investment commitments are testament to the resilience of the South African economy and the many opportunities for foreign and domestic investors.
It is up to us to seize these opportunities and take the economic relationship between our two countries to the next level.
There are several areas where we can strengthen collaboration.
South Africa has investment opportunities in the electric vehicle sector, renewable energy, green hydrogen and energy storage.
It has further opportunities in infrastructure, manufacturing, mining, beneficiation of critical minerals, and the digital economy.
We have seen China’s transformation as a major economic powerhouse over the last few decades.
Yesterday we visited Shenzhen and marvelled at the transformation of the city from a fishing village to a high-tech knowledge economy and a leader in the digital supply chain.
We seek to achieve a similar transformation in our economy.
Chinese companies will find there are innumerable business opportunities to manufacture products in South Africa using our excellent industrial experience and capabilities.
We plan to move from being a large importer of manufactured products to being a major exporter.
We have seen this happen in our automotive industry.
We have ambitious plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks.
We are on a path to revolutionise our energy sector in pursuit of low-carbon, climate resilient development.
We are actively seeking investment in the energy sector with a particular focus on renewables and green hydrogen.
China has a proven track record in developing innovative renewable energy solutions.
Together, we can create sustainable and environmentally-friendly energy solutions that benefit both our countries.
By working together, we can create value chains that are mutually beneficial, leading to job creation and economic growth.
There is also vast untapped potential in technology.
South Africa and China can collaborate to promote innovation, technology transfer and skills development.
By leveraging our respective strengths and exploring new avenues of collaboration, we can create mutually beneficial partnerships.
Our focus must now be on building stronger business relationships, promoting cultural exchanges and tourism, and creating a favourable business environment.
The value of such cooperation extends beyond our two countries.
The growth of the South African economy will support the success of the African Continental Free Trade Area, which opens access to a market of over 1.3 billion people.
African economic integration is fast becoming a reality.
This creates enormous opportunities to expand production on the continent and to stimulate much greater economic activity.
In conclusion, let me thank you for your participation in this business forum.
Let us work together to seize this opportunity and continue to build a more prosperous future for our respective countries.
I thank you.
Issued by The Presidency, 4 September 2024
