Cape town: Deputy President Paul Mashatile has called for stronger economic cooperation between South Africa and China, urging increased investment in key sectors to support industrialisation, job creation, and sustainable growth. Speaking at the South Africa-China Economic and Trade Forum, held at the Mount Nelson Hotel in Cape Town, Deputy President Mashatile stated that while the partnership between the two countries continues to yield tangible economic benefits, it requires further expansion to unlock its full potential.
According to South African Government News Agency, Deputy President Mashatile emphasized the importance of aligning government strategies with private sector engagement at the forum. He stated that the discussions in diplomatic and technical sessions are meant to be implemented by private sector players, leading to job creation, industrialisation, and shared prosperity. The forum followed the 9th Session of the Bi-National Commission, co-chaired by Deputy President Mashatile and Vice President Han Zheng of the People's Republic of China, reaffirming the longstanding ties built on mutual respect and shared development.
Deputy President Mashatile highlighted that China remains South Africa's largest trading partner, with bilateral trade increasing by 6.4% from US$34.2 billion in 2024 to US$36.4 billion in 2025. Government efforts are now focused on restructuring trade patterns to promote value-added exports rather than raw commodities. He noted that Chinese investment in South Africa has reached US$8.11 billion across 103 foreign direct investment projects, creating more than 5,600 jobs. In contrast, South African companies have invested US$689 million in China across sectors such as healthcare, ICT, manufacturing, and financial services.
The recently signed Framework Agreement for the China-Africa Economic Partnership Agreement (CAEPA) is expected to enhance trade by lowering costs for Chinese imports of South African goods while improving market access for local industries. Discussions around an Early Harvest Agreement could see certain South African exports receiving permanent zero-tariff treatment, subject to consultations within the customs union.
Several priority sectors for investment were identified, including mineral beneficiation, renewable and clean energy, ICT, agriculture, automotive manufacturing, and the hydrogen economy. Investing in processing and infrastructure development would help build sustainable industries and support long-term economic growth. In the energy sector, collaboration with China could accelerate South Africa's transition to renewable energy, particularly in solar, wind, and energy storage technologies.
Deputy President Mashatile also highlighted South Africa's potential to become a global leader in green hydrogen production. He encouraged Chinese investors to take advantage of South Africa's Special Economic Zones and industrial parks, offering infrastructure, incentives, and access to skilled labor. He concluded by calling on both governments and the private sector to translate agreements into tangible outcomes that will drive inclusive growth, contributing to Africa's broader development agenda.