The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi says strategic collaborations in sectors such as automotive, construction and pharmaceutical are key in South Africa and China trade relations. Godlimpi was speaking at the South Africa – China Trade and Investment Promotion conference hosted today in Midrand, Gauteng.
“We have seen Chinese companies expanding into growth areas such as renewable energy, green hydrogen, energy storage, infrastructure, logistics, and the digital economy. These companies are increasingly investing in the country, contributing to local job creation and skills development, while also adapting to local needs through strategies like localisation and focusing on sectors such as automotive, renewable energy, critical mineral beneficiation, and the digital economy,” he said.
Godlimpi said while the Chinese investments played a significant role towards South Africa’s economic growth, job creation, and overall development, it is important to have a serious conversation about collaborations that are mutually beneficial.
“In our conversations that we need to have going forward, It is quite significant for us to strike partnerships that moves us away from being the hub of assembling automotive product, but to be the hub that produces significant components that go into not just the automotive consumption that Africa is responsible for, but for the overall automotive consumption across the world,” said Godlimpi.
He added that the challenge that might arise from these collaboration talks is the readiness of the private sector’s competitiveness to partner with the Chinese.
“What is it that the South African private sector is willing to do to retain and improve South Africa’s competitive capacity in sectors such as construction, pharmaceuticals and the engineering services as a whole, so that we could use that capacity to leverage the opportunities of partnerships in technological transfers between South Africa and China,” said Godlimpi.
Godlimpi tasked the South African private sector to conduct a proper market analysis of the Chinese consumer economy, in order to have an understanding of the segments of the market that they could potentially build their innovative capacity in South Africa in order to feed into on the other end.
“A proper market analysis and a strategic collaboration between the department and organised business in South Africa will give a clear understanding of the dynamics of the Chinese economy. South Africa is full of opportunities to explore across key sectors, and I encourage all of us to work together, to collaborate and build stronger partnerships, to seize the opportunities available, to attract the investments necessary for our country’s growth and development,” he said .
Godlimpi said he was encouraged by the enthusiasm and interest expressed to strengthen and to continue deepening economic relationships between both our countries by the signing of an Memorandum of Understanding (MoU) on Strengthening Cooperation to Promote China-South African Trade and Investment between South Africa – China Economic and Trade Association (SACETA) and a South African Business Chamber, as well as signing of contracts between Chinese Companies and their South African counterparts.
The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi addressing the South Africa – China Trade and Investment Promotion Conference in Midrand, Gauteng.
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