South Africa-China Trade Soars – LN24
The economic relationship between South Africa and China has experienced significant expansion over the past few decades. This growing partnership has been marked by increased trade, investment, and collaboration in various sectors such as mining, infrastructure, manufacturing, and technology. China has become South Africa’s largest trading partner, with both countries benefiting from mutually advantageous agreements and initiatives. South Africa exports a range of commodities, including minerals and agricultural products, to China, while importing a variety of manufactured goods, machinery, and electronics.
Additionally, China’s Belt and Road Initiative (BRI) has played a key role in further enhancing these economic ties, facilitating infrastructure development and trade connectivity. South Africa has seen Chinese investments in key projects, including the construction of railways, ports, and industrial zones, which have contributed to job creation and economic growth. Moreover, the two nations have strengthened their diplomatic ties, working together in international forums such as the BRICS group to promote development and cooperation among emerging economies.
Bilateral trade surged to $52.5 billion (R970 billion) in 2024, positioning South Africa as a key partner in China’s African trade strategy, accounting for the largest share of China’s trade with the continent.
In 2023, China became South Africa’s top trading partner, with trade approaching $40 billion (R730 billion), driven by growth in sectors like mining, manufacturing, and infrastructure.
The agricultural sector has also gained from trade agreements, with China lifting its ban on South African beef and approving avocado exports.
Both countries continue to collaborate on infrastructure projects, technology, and BRICS initiatives, promising sustained growth and prosperity.
Key Highlights
China’s direct investment in South Africa surpassed $25 billion in 2023.
In 2024, China committed to expanding market access, exporting more value-added goods from South Africa, and supporting manufacturing initiatives for skill transfer and job creation in both nations.
More than 100,000 Chinese tourists visited South Africa in 2023.
China has strongly supported South Africa’s G20 presidency this year, pledging to work together on global challenges such as conflict prevention and equitable trade.
Since 1999, over 3,000 South African students have studied in China through scholarships and exchange programs.
Although, this growing economic relationship has also brought challenges, such as concerns about the balance of trade, the impact of Chinese imports on local industries, and the environmental consequences of some large-scale projects. Despite these challenges, the relationship between South Africa and China remains a critical component of South Africa’s broader foreign policy and economic strategy. Both countries continue to explore new areas of cooperation, with the aim of fostering sustainable development and mutual prosperity.
