South Africa’s Deputy President, Paul Mashatile, has issued a blunt call to Beijing, urging China to urgently fling open its vast markets to more South African goods. The plea comes as the yawning trade deficit between the two nations has ballooned to a staggering $9.7 billion by 2023, a more than ninefold increase from a mere billion dollars in 1988.
Speaking to delegates at the South Africa-China Investment Forum in Beijing, Mashatile underscored the critical need for South Africa to diversify its export portfolio, emphasising a shift towards more value-added products. “We need to address challenges such as access to the Chinese market due to factors like tariffs and non-tariff barriers, distance, and competition from other countries,” Mashatile stated in a communication from the Government Communications Information System.
He articulated a clear vision: “It is through strategic trade and investment partnerships with China that we can both create a balance and subsequently play a significant role towards South Africa’s economic growth, job creation, and overall development.” His words highlight a growing concern in Pretoria that while Chinese investment pours into South Africa, the reciprocal flow of goods remains stubbornly lopsided.
Indeed, China stands as South Africa’s largest trading partner and a significant investor, with 48 Chinese companies having injected over $11.69 billion into the South African economy in the past decade alone. However, Mashatile laid bare the stark reality of a cumulative cash outflow of a staggering $114.83 billion from South Africa to China since the inception of the Forum on China-Africa Cooperation. This figure underscores the formidable challenge South Africa faces in rebalancing its economic relationship with the Asian powerhouse.
Despite the disparities, Mashatile was quick to reiterate South Africa’s continued appeal to Chinese investors, particularly in burgeoning sectors such as renewable energy, green hydrogen, infrastructure, logistics, and the digital economy. He also extended an invitation to investors to leverage South Africa’s strategic position as a gateway to the broader African continent, made even more accessible through the African Continental Free Trade Area (AfCFTA).
“We value this longstanding relationship because it has been established on a shared vision for a prosperous future,” Mashatile concluded, a sentiment that, while true, now carries an unmistakable undertone of urgency for a more equitable partnership. The ball, it seems, is now firmly in China’s court.
