President Ramaphosa Lauds China’s Commitment to Boost South Africa’s Manufacturing Capacity

by Selinda Phenyo
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By Thabo Mosia

South African President Cyril Ramaphosa, in his weekly newsletter on Monday, 9 September 2024, praised the strengthening of relations between China and South Africa following his recent state visit to Beijing. The visit coincided with the 2024 Forum on China-Africa Cooperation (FOCAC) summit, which brought together heads of state from across Africa. This marks a significant milestone in the diplomatic ties between the two countries, as China continues to solidify its role as South Africa’s largest trading partner.

A New Era of Cooperation

During his visit, President Ramaphosa highlighted the importance of upgrading South Africa and China’s relationship to an “All-Round Strategic Cooperative Partnership in a New Era.” This partnership reflects a deepening of political, economic, and social ties, further advancing mutual cooperation in several key areas, including manufacturing, infrastructure, and renewable energy .

The president’s discussions with Chinese leader Xi Jinping focused on reshaping the structure of trade between the two countries. While China remains South Africa’s largest trading partner, the trade imbalance remains a challenge, as South Africa primarily exports raw materials while importing finished products from China. Ramaphosa emphasized the need for South Africa to develop its manufacturing capabilities to export more value-added products, a key step in narrowing the trade deficit.

Boosting South Africa’s Manufacturing Sector

A central theme of Ramaphosa’s newsletter was China’s commitment to supporting South Africa’s manufacturing capacity. Hisense, a Chinese electronics company, has been a cornerstone of this industrial growth, with its manufacturing plant in the Atlantis Industrial Park in the Western Cape. This plant, established over a decade ago, has not only supplied local markets but also expanded its exports to other African countries and the United Kingdom. The Hisense plant has created over 1,000 direct and 5,000 indirect jobs, demonstrating the tangible benefits of Chinese investment in South Africa’s industrial sector .

In line with this commitment, Ramaphosa noted that several other Chinese companies are exploring investment opportunities in South Africa, particularly in sectors like energy, infrastructure, and technology. This aligns with South Africa’s broader goals of increasing employment and advancing technological development .

China’s Support for South Africa’s Green Energy Initiatives

An exciting prospect arising from this partnership is China’s backing of South Africa’s efforts in the green energy sector. With the world increasingly focused on sustainable development, the collaboration between China and South Africa in the areas of renewable energy, electric vehicles, and green hydrogen holds great promise. These sectors represent untapped opportunities for South Africa to reduce its carbon footprint while simultaneously bolstering its economy .

Ramaphosa further emphasized the potential of cooperation in technology and digital transformation. Chinese firms are expected to play a critical role in modernizing South Africa’s infrastructure, particularly in expanding ports, rail, and road networks .

China-Africa Cooperation Through FOCAC

The FOCAC summit, which gathered leaders from over 50 African countries, highlighted China’s role in supporting Africa’s modernization and industrialization. President Xi Jinping announced ten partnership actions aimed at supporting African countries, covering areas such as trade, agriculture, health, and infrastructure .

These developments are particularly timely as Africa becomes more integrated through the African Continental Free Trade Area (AfCFTA), which will provide access to a market of over 1.3 billion people. China’s growing investments in Africa’s infrastructure and industrial capacity will help the continent move beyond its reliance on raw materials exports, increasing the value-added goods it produces


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