South Africa and China have signed a framework agreement that could reshape trade relations between the two nations, with Pretoria securing a commitment for duty-free access to Chinese markets by the end of March.
On Thursday, trade, industry and competition minister Parks Tau and Chinese commerce minister Wang Wentao signed the Framework Agreement on Economic Partnership for Shared Prosperity (CAEPA), a wide-ranging pact covering trade, investment, new energy and multilateral cooperation.
The agreement marks a significant deepening of economic ties between Africa’s most industrialised economy and its largest Asian trading partner. An Early Harvest Agreement is scheduled for completion by March 2026, which will eliminate Chinese tariffs on South African exports.
“As China-South Africa relations continue to deepen, new opportunities emerge for South African businesses seeking to enter the Chinese market, particularly in sectors such as mining, agriculture, renewable energy and technology,” Tau said.
The framework comes as South Africa seeks to diversify its export markets and attract foreign investment to stimulate economic growth and job creation. China is already a major destination for South African agricultural products, including citrus and rooibos tea.
We have seen a significant and steady increasing number of Chinese investments in South Africa, while South African companies are showing a growing interest in investing in the Chinese market
— Parks Tau, minister of trade, industry and competition
The agreement is designed to expand bilateral trade, with particular emphasis on South African agricultural products and high-value manufactured goods. Both nations have committed to working “in a friendly, pragmatic, and flexible manner” while maintaining consistency with World Trade Organisation principles.
China has already committed to sending an inward buying mission to South Africa and has invited the country to participate in both the Country Exhibition and Business Exhibition at the 9th China International Import Expo in Shanghai this November.
Beijing has also extended an invitation to South Africa for a steel investment event aimed at promoting opportunities in the sector.
South Africa is the leading African destination for Chinese investment and the continent’s largest investor in China. The relationship has strengthened in recent years, with Chinese automotive manufacturers establishing operations in South Africa, creating employment in a country grappling with unemployment rates exceeding 30%.
“We have seen a significant and steady increasing number of Chinese investments in South Africa, while South African companies are showing a growing interest in investing in the Chinese market,” Tau said.
“We look forward to attracting even more Chinese investment into South Africa, and also introducing many South African products into the Chinese market.”
