South Africa Unveils Five-Year China Trade and Investment Plan to Boost Industry and Skills

Pretoria: South Africa, on Friday, 8 August 2025, announced a new five-year trade and investment package with China (2025–2029), aimed at strengthening industrial growth, skills development, and access to Chinese markets.

The initiative, introduced by Minister in the Presidency Khumbudzo Ntshavheni, sets out clear priorities: establishing a “Top 100” product exchange, securing a permanent South African expo presence in China, and reducing regulatory barriers that slow down trade.

Targeting Strategic Sectors

Pretoria is directing Chinese investment towards steel, tyres, automotive production, batteries, pharmaceuticals, medical devices, rail manufacturing, and the digital economy. Alongside financial capital, the package emphasises skills training and after-sales capacity, ensuring South African industries can remain competitive in both local and international markets.

The agreement follows Deputy President Paul Mashatile’s working visit to China in July 2025, where trade and industrial cooperation topped the agenda.

A Boost From Tariff-Free Access

The plan comes just weeks after Beijing announced the removal of all tariffs on exports from African countries with diplomatic ties to China. Analysts say this move levels the playing field and creates a powerful opportunity for countries with strong manufacturing bases, particularly South Africa, Kenya, Nigeria, Egypt, and Morocco, to expand their export footprint.

For South Africa, the combination of tariff-free access and product promotion through a permanent Chinese expo presence could finally unlock large-scale entry into China’s consumer and industrial markets.

Linked to Digital Growth

The package also aligns with South Africa’s digital economy and AI cooperation agreements signed earlier in August 2025. Together, these initiatives create a complementary strategy where industrial growth is supported by digital infrastructure, connectivity, and technology partnerships.

Officials say this reflects Pretoria’s long-term goal to diversify trade partners, reduce vulnerabilities to global economic shifts, and drive more value-added manufacturing at home.

Building on Past Cooperation

The plan also fits into the Forum on China–Africa Cooperation (FOCAC) framework, which has consistently prioritised trade facilitation, technology transfer, and industrial development. Previous FOCAC action plans and their 2025 updates highlighted science and technology cooperation, BeiDou satellite applications, and trade growth, showing that Pretoria’s latest move aligns with established priorities.

A Potential Turning Point

If implemented effectively, with strong standards, fair competition rules, and support for small businesses, this five-year plan could mark a turning point for South Africa’s export profile, helping local industries gain a stronger foothold in the Chinese market.

Sources: APA News | Reuters | iAfrica.com