SA to transform economy into manufacturing hub

4 September 2024 by Guest

By Nosihle Shelembe

Beijing, China – President Cyril Ramaphosa says South Africa is working towards transforming the economy by turning the country into a “manufacturing hub”.

“We plan to move from being a large importer of manufactured products to being a major exporter,” the President said on Wednesday.

Addressing the South Africa-China Business Forum on the occasion of the State Visit to China, President Cyril Ramaphosa said Chinese companies will find there are innumerable business opportunities to manufacture products in South Africa using the country’s excellent industrial experience.

“We have seen this happen in our automotive industry. We have ambitious plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks.

“We are on a path to revolutionise our energy sector in pursuit of low-carbon, climate resilient development,” the President said.

He said South Africa is actively seeking investment in the energy sector, with a particular focus on renewables and green hydrogen.

“China has a proven track record in developing innovative renewable energy solutions.

“Together, we can create sustainable and environmentally friendly energy solutions that benefit both our countries.

“By working together, we can create value chains that are mutually beneficial, leading to job creation and economic growth.

There is also vast untapped potential in technology,” President Ramaphosa said.

He said South Africa and China can collaborate to promote innovation, technology transfer and skills development.

“By leveraging our respective strengths and exploring new avenues of collaboration, we can create mutually beneficial partnerships.

“Our focus must now be on building stronger business relationships, promoting cultural exchanges and tourism, and creating a favourable business environment.

“The growth of the South African economy will support the success of the African Continental Free Trade Area, which opens access to a market of over 1.3 billion people,” the President said.

He said African economic integration is fast becoming a reality that creates enormous opportunities to expand production on the continent and to stimulate much greater economic activity.

“We are a country with enormous potential for growth and development. We are advantageously placed for companies looking to expand into the rest of the African continent.

“South Africa and China have vibrant, diverse and growing economies, with a wealth of opportunities for businesses wishing to expand into new markets,” the President said.

China is currently South Africa’s largest trading partner.

Bilateral trade between China and South Africa has increased by a third since 2019.

South Africa exports mainly minerals and agricultural products to China, and imports largely manufactured products from China.

“We are seeking to shift the structure of our trade profile and deepen our investment relationship.

“South Africa has one of the most advanced and diversified economies on the African continent. It has a vibrant business environment and a strong regulatory framework. It has a diverse, competitive and well-regulated financial sector,” the President said.

Since the start of South Africa’s major investment drive in 2018, Chinese companies have made investment pledges to the value of over R18 billion in the manufacturing, resources, finance and agro-processing sectors. This is the equivalent of US $1 billion.

“In the last six weeks, a number of Chinese companies have increased investments to support the expansion of their operations.

“These investment commitments are testament to the resilience of the South African economy and the many opportunities for foreign and domestic investors.

“It is up to us to seize these opportunities and take the economic relationship between our two countries to the next level,” the President said.

He said South Africa has investment opportunities in the electric vehicle sector, renewable energy, green hydrogen and energy storage.

It has further opportunities in infrastructure, manufacturing, mining, beneficiation of critical minerals, and the digital economy.

“Let us work together to seize this opportunity and continue to build a more prosperous future for our respective countries,” the President said. – SAnews.gov.za

Matona
Wed, 09/04/2024 – 13:10

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