South Africa Aims To Become Manufacturing Hub, Seeks Chinese Investment In Energy Sector

South Africa is all set to transform its economy by becoming a major manufacturing hub, as per President Cyril Ramaphosa, who stressed that the country's goal is to shift from being a big importer of manufactured goods to becoming a leading exporter.

During a speech at the South Africa-China Business Forum, part of his State Visit to China, Ramaphosa told Chinese companies that there are many opportunities to set up manufacturing operations in South Africa, thanks to the country's strong industrial expertise.

"We have seen this happen in our automotive industry. We have ambitious plans to modernize our infrastructure by investing in the expansion of ports, rail and road networks. We are on a path to revolutionize our energy sector in pursuit of low-carbon, climate-resilient development," Ramaphosa said, SA News reported.

The president mentioned that South Africa is looking for investment in the energy sector, especially in renewable energy and green hydrogen. He highlighted that China has a strong history of developing innovative renewable energy solutions.

By collaborating, both countries can create sustainable and eco-friendly energy solutions, as per Ramaphosa. This partnership could lead to job creation and economic growth and unlock significant potential in technology.

China is South Africa's biggest trading partner. Since 2019, trade between the two countries has grown by one-third. South Africa mainly exports minerals and agricultural products to China, while it imports mostly manufactured goods from China.

Several Chinese companies have increased their investments in the past six weeks to expand their operations. These investments show the strength of the South African economy and the many opportunities available for foreign and local investors.

Ramaphosa highlighted that South Africa offers investment opportunities in electric vehicles, renewable energy, green hydrogen and energy storage. There are also opportunities in infrastructure, manufacturing, mining, processing 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.

Earlier this week, during the state visit, China pledged to help South Africa in fighting poverty and improve living conditions in the African nation.