Remarks by Deputy President Shipokosa Paulus Mashatile at the Working Dinner with ICBC and Standard Bank, China World Summit Wing Hotel and Conference Hall, Beijing

Programme Director;
Mr Liu Jun, President of ICBC Bank;
Ministers and Deputy Ministers;
Esteemed representatives of Standard Bank, Sinosteel, China Communication Construction Company and Chery;

Ladies and gentlemen,

"Coming together is a beginning, staying together is progress, and working together is success," is a renowned quote that has always served as a source of motivation for me.

The phrase highlights the fact that merely getting people together is a good place to begin; nevertheless, it is essential to keep unity and actively collaborate with one another to advance in a meaningful way and finally achieve success.

This gathering signifies the importance of fostering strong partnerships between South Africa and China in strategic sectors for investment and trade promotion. While we are looking forward to the opportunities that lie ahead for us, it is clearly evident that the partnership between our two countries offers a significant potential for the progress and prosperity of both of our countries.

With the diversified resources of South Africa and the economic strength of China, there is a great deal that we are capable of accomplishing together. We must augment our collaboration, especially in critical industries poised for investment and trade.

Currently, South Africa and China have strong economic cooperation, with bilateral commerce amounting to $34 billion in 2024 and Chinese foreign direct investment in South Africa being $13.21 billion. This partnership is characterised by a growing trade relationship, with China being South Africa's largest trading partner for 16 consecutive years.

A notable aspect of the trade relationship is the trade imbalance, where South Africa exports primarily raw materials to China and imports manufactured goods, creating a trade deficit for South Africa. South Africa needs to benefit more from its active, albeit highly unequal, trading partnership with China.

Therefore this dinner presents a strategic opportunity for us to: 

· Leverage ICBC’s financial expertise and Standard Advisory’s market insights to deepen investment in SA’s priority sectors. 

· Address trade imbalances by promoting value-added exports and technology transfer. 

· Advance partnerships in renewable energy, critical minerals, infrastructure, and manufacturing under the Forum on China-Africa Cooperation (FOCAC) framework.
 
Through the process of recognising and capitalising on these key sectors, we are able to create an environment in which both of our economies benefit and in which we make progress towards our common objectives.

I am certain that the many areas of expertise and knowledge that have been collected around these tables will make it possible for us to devise specific plans and strategies that can be put into action, which will propel our partnership ahead.

Let me also highlight some opportunities in green industrialisation, infrastructure financing, and export diversification. 

In particular, South Africa has substantial prospects in the areas of green industrialisation, financing infrastructure, and export diversification. This is especially true when considering the worldwide move towards a low-carbon economy.

In addition to a rapidly expanding renewable energy industry, the country's plentiful natural resources, which include minerals that are essential for the development of environmentally friendly technology, provide a solid basis for the expansion of green industrialisation.

Strategic investments in infrastructure, particularly in water and sanitation, and a focus on export diversification can further drive sustainable economic development and job creation.

In a nutshell, let us collaborate in the strategic sector for the purpose of promoting investment and trade in areas such as the following:

· Battery Manufacturing & Critical Minerals: SA seeks Chinese investment in battery value chains (mining → processing → cell manufacturing) to supply global EV markets. 

· Renewable Energy and Green Hydrogen: SA’s Hydrogen Valley ($5.96B) and 24 renewable energy projects ($9.35B) need Chinese EPC and financing. 

· Infrastructure and Rail Modernisation: SA’s rail revitalisation (high-speed Gautrain extension, rural corridors) requires Chinese expertise and capital. 

· Metallurgy and Smelter Revitalisation:  South Africa presents significant investment opportunities in metallurgy and smelter revitalisation, driven by its rich mineral resources and the global shift towards a low-carbon economy.

South Africa and China are at a pivotal moment to redefine our economic partnership—from raw material trade to co-industrialisation. Together, we can pave the way for a brighter future that brings prosperity to our people and strengthens the bonds between our nations.

We invite ICBC and Standard Advisory to:

· Finance catalytic projects in batteries, green hydrogen, and rail under FOCAC’s Partnership Action Plans. 

· Bridge trade gaps by supporting SA’s Top 100 Export Initiative and SME integration into Chinese supply chains. 

· Co-invest in infrastructure through blended finance, ensuring mutual gains under Africa Free Trade Agreement. 

Let us turn commitments into concrete projects that create jobs, transfer technology, and position SA as China’s gateway to Africa.

There is potential for South Africa and China to work together to foster innovation, the transfer of technology, and the development of skills. There is the potential for us to form partnerships that are beneficial to both parties if we capitalise on our individual skills and explore new ways of working together.

Through partnership and working together for a common purpose, we can realise the full potential of both our countries.

Thank you.