Industrialisation Grows as South Africa & China Move Beyond Raw Materials

South Africa and China are shifting their economic relationship into a new phase: moving past the old model of exporting raw materials and importing finished goods, toward deeper industrialisation, value addition, and manufacturing growth. Recent speeches and events confirm that both countries are now working to build up South Africa’s domestic production capacity and beneficiation.

At a seminar hosted by the South African Institute of International Affairs (SAIIA) on Friday, Chinese Ambassador Wu Peng underscored this shift. He said that while mining and exports of raw materials remain important, industrial strategy must focus on building local factories, processing materials domestically, and creating sustainable trade that generates job growth and more.

This industrial turn is also visible in government planning. South Africa’s new Trade, Investment and Industrialization Plan (2025-2029) identifies around 100 priority products for export promotion to China. The plan aims to diversify South African exports away from predominantly mineral raw materials, into processed agricultural goods, light manufacturing, and automotive

Another acceleration comes with China’s push to provide zero-tariff access to South African exports. At the recent South Africa-China Trade & Investment Promotion Conference, Ambassador Wu Peng affirmed China’s readiness to expedite zero-tariff access for all South African goods under its broader scheme (which aims to cover all tariff lines for African partner countries). This will make South Africa’s exported goods more competitive in the Chinese market.

Some of the sectors already benefiting include agriculture (avocados, dairy, pecans, macadamias) and light manufacturing. For example, South Africa now sells a high share of its pecans and macadamias to China, while Chinese companies are investing in mineral processing, automobile manufacturing, and renewable energy inside South Africa.

This phase of industrial cooperation offers significant opportunities. For South Africa, moving up the value chain means more jobs, more stable incomes, and less vulnerability to commodity price shocks. For China, this approach offers more reliable supply chains, partners in manufacturing, and a broader base for trade.

As South Africa strengthens its industrial strategy in collaboration with China, the trade relationship is becoming more balanced, more resilient, and more geared toward shared benefits. The raw materials link remains, but increasingly South Africa is exporting value, not just volume.