President Cyril Ramaphosa is on a drive to bring more Chinese investments into South Africa in an effort to create more manufacturing job opportunities.
StatsSA recently revealed that South Africa was faced with the highest unemployment rate in the past two years. The country recorded 33.5% in the second quarter of 2024.
This meant that more than 8.4 million people were unemployed, and the youth was the most affected.
Ramaphosa spoke at the South Africa-China Business Forum in Beijing, China, on Wednesday.
Trade and investment relationship
He engaged the Chinese government on how the trade and investment relationship between the two countries could be improved and strengthened.
Ramaphosa said South Africa aims to shift from being a large importer of manufactured goods to being a major exporter.
He believes South Africa has many business opportunities for manufacturing. It has excellent industrial experience and capabilities.
He also noted that the country is working on modernising public infrastructure, including ports, railways, and roads.
“We are on a path to revolutionise our energy sector in pursuit of low-carbon, climate-resilient development. And we are actively seeking investment in the energy sector. This with a particular focus on renewables and green hydrogen,” said Ramaphosa.
Ramaphosa praised China’s transformation into a major economic powerhouse in the past years.
He recalled his visit to Shenzhen on Tuesday. The area has evolved from a fishing village to a high-tech knowledge economy and leader in the digital supply chain. Ramaphosa emphasised that this was the same vision he shares for the South African economy.
Electric vehicle sector
The president suggested that areas where the South Africa-China collaboration could be strengthened included investment opportunities in the electric vehicle sector.
“Since the start of our investment drive in 2018, Chinese companies have made numerous investment pledges. These are valued at over R18-billion in total. They are in the manufacturing, resources, finance and agro-processing sectors. This is the equivalent of US $1-billion.
“We express our appreciation for these commitments and for China’s continued support of our investment drive,” said Ramaphosa.
He added that South Africa looks forward to further cooperation with China. This is particularly in technology transfer, innovation, and skills development.
He also suggested that the two countries explore new areas of collaboration and build stronger relationships. To also promote cultural exchanges and tourism, and create a favourable business environment.
He insisted that this collaboration would benefit the South African economy. It will also support the African Continental Free Trade Area, which provides access to a market of over 1,3 billion people.
