Pretoria:South Africa is leveraging China's zero-tariff treatment for African countries to boost exports, bolster local manufacturing, and create jobs. Trade, Industry, and Competition Minister Parks Tau emphasized the importance of capitalizing on duty-free access to the Chinese market, while continuing negotiations to ensure long-term benefits for exporters and protection for local industries.
According to South African Government News Agency, China introduced a unilateral preference scheme that offers duty-free market access for 100% of products, except for 47 tariff lines with tariff-rate quotas, from May 1, 2026, to April 30, 2028. South African products that comply with the rules of origin can enter the Chinese market without incurring customs duties.
Minister Tau highlighted the issuance of 25,975 certificates of origin by the South African Revenue Service (SARS) between June 1 and August 31, alongside a 199% year-on-year increase in customs declarations. South Africa has also devised a Top 100 value-added product portfolio targeting the Chinese market, spanning sectors like agro-processing, beverages, chemicals, pharmaceuticals, and automotive products.
China remains South Africa's largest trading partner, with total bilateral trade reaching R642 billion in 2025, up from R483 billion in 2021. Exports to China grew from R198 billion to R222 billion, and imports rose from R284 billion to R420 billion. Chinese foreign direct investment in South Africa stood at R117 billion in 2024, with over 200 Chinese companies investing locally. More than 25 South African companies have invested in China.
Minister Tau and Chinese Minister Wang Wentao signed a framework agreement on economic partnership in February, and both countries are negotiating an Early Harvest Agreement through the Southern African Customs Union (SACU) to provide exporters with certainty beyond 2028. The agreement aims to protect South African industry and jobs while fostering industrial cooperation.
Tau also noted progress in industrial development, with investments in special economic zones, automotive manufacturing, and the electric vehicle sector. Special focus is on the Fetakgomo-Tubatse Special Economic Zone in Limpopo, which is part of South Africa's Industrial Development Strategy to support economic growth.
Chinese automotive manufacturers like BAIC and Chery are enhancing local manufacturing through partnerships and investments. Chery, which acquired Nissan South Africa's manufacturing facility in Rosslyn, Pretoria, plans to increase employment to nearly 3,000 jobs. The IDC is supporting a feasibility study on local battery cell manufacturing, exploring partnerships in battery mineral processing, and advancing battery energy storage systems.
