Deputy President Paul Mashatile has encouraged Chinese-funded enterprises in South Africa to increase their investments in crucial sectors of the economy, particularly the automotive industry and infrastructure development.
“Your participation and investment in our country is critical for creating jobs and promoting economic growth and development,” the Deputy President said on Wednesday.
The country’s second-in-command was speaking at the launch of the corporate social responsibility report of Chinese-funded enterprises in South Africa.
At the South Africa-China Economic Trade and Association (SACETA) event, Mashatile cknowledged the organisation’s substantial contributions to the country’s economic and social development.
SACETA was established in April 2011 and serves as a vital platform for fostering economic and trade collaboration between China and South Africa.
Mashatile told attendees that the 200 Chinese-funded enterprises locally serve as role models for businesses, demonstrating that profitability should be balanced with social good.
As the global landscape continues to evolve rapidly, he believes it is essential for nations to cultivate strong partnerships to thrive and navigate the challenges of the modern world.
“We should leverage our expertise to navigate towards a more sustainable path, guided by the principles of joint pursuit and a shared future. Our countries have complementary strengths and resources, making us ideal economic partners.”
The Deputy President described China as one of the world’s greatest economies, providing a massive market for South African goods and services.
“In return, South Africa provides rich resources, such as minerals, agricultural products, and skilled labour, to support China’s rising economy.”
Mashatile is of the view that improving trade connections between South Africa and China benefits both countries directly and has a positive ripple effect throughout the region.
“Increased trade creates jobs, stimulates economic growth, and improves living standards for the people of both countries.”
However, the Deputy President acknowledged that the trade structure has been imbalanced, noting that last year’s value of China’s imports far exceeded its exports.
According to Mashatile, total bilateral trade increased from R614 billion in 2022 to R692 billion in 2023, while China’s R146 billion deficits remained the highest among any of the country’s trading partners.
He announced that government intends to work with China in addressing the trade deficit and structure of bilateral trade by broadening its export basket, especially to export more value-added products.
“South Africa mostly exports minerals and agricultural products to China while importing mostly manufactured goods from China. At a time when African economies are becoming more integrated, China’s technological prowess may help Africa industrialise and export more than just raw materials.
“Instead of exporting raw agricultural items, South Africa may export processed foods that are more valuable.”
Mashatile stressed that China could lend a helping hand by streamlining import procedures and lowering regulatory hurdles, which could make China a larger market for local products, benefiting both South African producers and Chinese customers.
He said Chinese-funded enterprises must seize opportunities in emerging fields such as artificial intelligence, the digital economy and green energy.
Last year, Chinese businesses pledged to invest up to R15 billion at South Africa’s fifth Investment Conference.
“In that same year, we witnessed the signing of significant purchase agreements totalling US$2.2 billion with companies in both nations. Therefore, our positive trade relations continue to be crucial in combating unemployment, inequality, and poverty,” Mashatile said.
He said South Africa and China share a strong and longstanding relationship, and that the bond between the nations has deepened, revealing the potential for collaboration to promote inclusive and equitable growth.
The Deputy President also touched on President Cyril Ramaphosa’s recent State Visit to China and told attendees that both Heads of State committed to providing a stable, fair, and enabling business environment for companies.
He welcomed the report that highlights the contributions of Chinese-funded enterprises to environmental conservation, community development, education, and healthcare.
“As we move forward, let us reaffirm our commitment to expanding South African-Chinese trade and investment cooperation. Together, we can build a more successful and sustainable future for our countries.” – SAnews.gov.za
