By Karabo Mohamme
In a powerful affirmation of growing economic cooperation, South Africa and China have reinforced their strategic partnership with the signing of several key memoranda of understanding (MoUs) during the ninth South Africa-China Trade and Investment Promotion Conference held on Sept. 23.
The conference, a cornerstone of bilateral engagement, resulted in agreements across a range of sectors, demonstrating both countries’ commitment to deepening trade relations and mutual investment. Among the highlights was an MoU between Business Unity South Africa (Busa) and the South Africa China Economy and Trade Association (Saceta), which represents over 200 Chinese enterprises operating in South Africa. This agreement aims to boost collaboration and communication between businesses from both countries.
In the mining and industrial sector, South African investment firm Mantengu Mining entered into a strategic cooperation agreement with Chinese multinational SANY for the distribution of heavy equipment. Similarly, the China State Construction Engineering Corporation signed an MoU with local cement producer AfriSam to source construction materials from South Africa, a move seen as promoting local industrial participation.
Chinese Ambassador to South Africa Wu Pengprovided a strong endorsement of bilateral investment, noting that China has invested over $13.2 billion in South Africa in foreign direct investment (FDI), while South African FDI into China stands at $8 billion. These investments have contributed significantly to employment, with more than 26,000 jobs created in South Africa and nearly 9,000 in China.
Major Chinese companies active in South Africa include Hisense, FAW, Sinosteel, Seraphim Solar, and BAIC, while prominent South African firms such as Sasol, Standard Bank, Mondi, Altech, and Onafriq are established in China. Wu highlighted the rapid growth of trade relations over the past decade and noted that further market access is being considered for South African agricultural exports, including stonefruit.
China currently imports 66 categories of agricultural and food products from South Africa annually. Notably, 50 percent of South Africa’s macadamia nuts and 98 percent of its pecan nuts are exported to China, underlining the importance of agriculture in the trade dynamic.
Addressing delegates, Deputy Minister of Trade, Industry and Competition Zuko Godlimpi urged a stronger focus on investment in mining, manufacturing, and infrastructure development. He also highlighted plans for a battery manufacturing corridor in Southern Africa and set an ambitious goal for the upcoming South Africa Investment Conference in March 2026, which aims to exceed $1.2 trillion in investment commitments.
Godlimpi encouraged South African companies to better understand China’s consumer economy and identify opportunities to build innovative capacity. He also called for more active engagement with the Department of Trade, Industry and Competition to explore areas for capacity building, especially by learning from China’s success in technological and manufacturing development.
Chinese firms were lauded for their investment in renewable energy, green hydrogen, infrastructure, logistics, and the digital economy in South Africa. However, both governments stressed the need for greater beneficiation within South Africa to reduce exports of raw materials and increase production of value-added goods.
Wu emphasized the need for change, especially in sectors such as battery production, where South Africa’s mineral wealth could support higher-value industries.
Busa CEO Khulekani Mathe noted that the trade relationship has matured to the point where China is now South Africa’s largest trading partner, and South Africa is China’s largest on the African continent. While he welcomed the progress made, he echoed the call for greater diversification in South African exports to China.
Saceta chairperson Zhang Caoyang highlighted the deepening localization of Chinese enterprises in South Africa, praising their contribution to job creation and social development. He expressed optimism that further large-scale Chinese investments would follow, further solidifying the countries’ economic partnership.
The latest conference and MoU signings mark a new phase in South Africa-China economic relations—one driven by shared growth, industrialization, and long-term strategic alignment.
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