In a show of confidence in South Africa and China’s trade relations and to strengthen bilateral agreements between the two nations, the ninth instance of the South Africa-China Trade and Investment Promotion conference, on September 23, resulted in the signing of various memoranda of understanding (MoUs).

Notably, industry body Business Unity South Africa (Busa) signed an MoU with South Africa China Economy and Trade Association (Saceta), which represents the more than 200 Chinese enterprises with business operations in South Africa, to promote greater enterprise collaboration and communication.

Further, South Africa-based investment company Mantengu Mining signed an MoU with Chinese multinational heavy equipment manufacturer SANY as a strategic cooperation agreement on distribution.

Additionally, China State Construction Engineering Corporation signed an MoU with local cement manufacturer AfriSam related to procurement of construction materials from South Africa.

During the conference, Chinese Ambassador to South Africa Wu Peng pointed out that China had invested more than $13.2-billion in South Africa in foreign direct investment (FDI), while South Africa’s FDI flow to China totalled $8-billion.

More than 26 000 jobs have been created as a result of Chinese investment in South Africa, while almost 9 000 jobs have been created in China as a result of South African investment.

Some of the key Chinese investors in South Africa include Hisense, BAIC, Sinosteel, FAW and Seraphim Solar, while key South African investors in China include Sasol, Standard Bank, Mondi, Altech and Onafriq.

Peng said trade relations between South Africa and China had developed rapidly over the last ten years; he expected more products to be able to enter the Chinese market duty-free from South Africa in the near future, including stonefruit.

China currently imports 66 categories of South African agriculture and food products every year. Particularly, 50% of South Africa’s macadamia nuts are exported to China and 98% of its pecan production is exported to China.

As South Africa headed the G20 Presidency this year, Peng said these countries, including China, must support Africa’s development, including industrialisation and modernisation, as a strategic opportunity, including in the automotive sector.

Trade, Industry and Competition Deputy Minister Zuko Godlimpi addressed conference delegates by calling for more investment in mining, manufacturing and infrastructure, including a battery manufacturing corridor in Southern Africa.

“The South Africa Investment Conference in March 2026 aims to exceed $1.2-trillion in investment commitments,” Godlimpi stated.

He tasked the private sector with conducting a proper market analysis of the Chinese consumer economy to understand the segments of the market that local companies could potentially build their innovative capacity in.

Godlimpi also encouraged organised business to continue collaborating with the Department of Trade, Industry and Competition (dtic) to better understand the dynamics of the Chinese economy and identify opportunities for capacity building, including by learning from China’s rapid technological and manufacturing advances – a model that the nation had perfected.

The Deputy Minister lauded Chinese firms for having invested in sectors such as renewable energy, green hydrogen, energy storage, infrastructure, logistics and the digital economy in South Africa; however, he wished to see more beneficiation investment for South Africa to be able to export less raw material and more manufactured goods.

dtic investment mobilisation chief director Lester Bouah said South Africa’s exports to China totalled $12.4-billion in 2024, while China exported $21-billion worth of goods to South Africa.

Exports to and from both nations have grown by 42% since 2020, with South Africa exporting mostly mineral products (93% of exports to China) and China mostly exporting manufactured goods to South Africa (92% of exports).

This needs to change, Peng emphasised, expressing a call for more beneficiation to take place in South Africa, especially in the battery manufacturing space, given South Africa’s proximity to these critical mineral producers in Africa.

Bouah listed South Africa’s strong points as an investment destination as being its progressive Constitution and independent judiciary, its vibrant emerging market, its abundant natural resources, its advanced financial services and banking sector, its young labour force, its world-class infrastructure and logistics, as well as the country’s status of being the most developed economy in Africa with the largest presence of multinational corporations in Africa.

Given that South Africa is a gateway to Africa, and Africa’s GDP is expected to grow by $3.5-trillion by 2035, it holds significant opportunities in urban cities and in respect of the growing middle class consumer market.

Bouah said there was more scope for collaboration between the countries on advanced manufacturing in chemicals, pharmaceuticals, aerospace, defence and medical devices, as well as enhanced e-commerce and payment systems.

Busa CEO Khulekani Mathe said the increasing trade between South Africa and China had culminated in China being South Africa’s largest trading partner and South Africa being China’s largest trading partner on the African continent.

The strong bilateral relations established between the two nations had resulted in mutual benefits and impactful investment in both countries, he added.

However, Mathe agreed with Bouah that more export diversification to China was necessary.

Black Business Council president Elias Monage echoed this sentiment, saying the ninth South Africa-China trade fair takes place at a critical time for both countries given complex trade issues globally.

He emphasised the importance of closing trade deficits, promoting technological skills and knowledge transfers and reindustrialisation to create jobs.

For Monage, a particular issue was that of a more favourable visa regime for South Africans travelling for business to China. “The goal is to foster greater integration and complementarity in trade areas, ensuring mutual benefits and sustainable economic growth.”

Saceta chairperson Zhang Caoyang said localisation of Chinese enterprises was deepening, with companies fulfilling social responsibilities and creating many jobs every year.

He was confident that more big Chinese projects and investments would come to the fore, which would further strengthen the two nations’ economic ties.