South Africa has officially unveiled an ambitious five-year trade and investment package with China, aimed at deepening South-South cooperation, accelerating industrial growth, and diversifying global economic partnerships in the face of growing trade tensions with the United States.
The South Africa-China Trade and Investment Package (2025–2029), developed by the Department of Trade, Industry and Competition in partnership with key industry bodies, was announced in Pretoria by Minister in the Presidency Khumbudzo Ntshavheni. The framework outlines strategic collaboration in trade, investment, industrial development, and skills training, marking a significant step towards reshaping South Africa’s role in the global economy.
According to Ntshavheni, trade priorities under the deal will focus on the exchange of the top 100 identified products between the two nations, the creation of a permanent South African trade expo in China, and joint efforts to address regulatory barriers that currently limit market access. On the investment and industrial development front, the package will target high-growth sectors such as steel production, tyre manufacturing, automotive assembly, battery production, pharmaceuticals and medical devices, rail manufacturing, and the digital economy.
The agreement also has a strong skills development component, prioritising training in technical and maintenance skills needed to support and sustain growth in these key industries. This will not only create employment opportunities in South Africa but also strengthen the country’s manufacturing and export competitiveness on the global stage.
The package was formally presented to Chinese government officials and business leaders during Deputy President Paul Mashatile’s working visit to China in July. Mashatile held high-level meetings with representatives of major state-owned enterprises and financial institutions, laying the groundwork for enhanced bilateral cooperation.
This move comes as South Africa navigates a delicate and often strained trade relationship with Washington. Rising US tariffs and shifting global trade dynamics have prompted the country to accelerate its diversification strategy, building stronger ties with partners in Asia, Europe, the Middle East, and across Africa.
To cushion industries impacted by US trade measures, the South African government is implementing targeted support measures, including an export support desk for affected companies, a Localisation Support Fund, and an Export and Competitiveness Support Programme that offers working capital, equipment financing, and market entry assistance.
Experts say the South Africa-China partnership could significantly boost bilateral trade volumes, enhance supply chain integration, and unlock new investment flows, especially in manufacturing and infrastructure. With China already serving as one of South Africa’s largest trading partners, this five-year roadmap could deepen economic ties, open up new market opportunities, and reinforce South Africa’s position as a key gateway for Chinese investments into the African continent.
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