Loading...

South Africa Targets Chinese Market to Boost Exports and Support Local Industry

South Africa Targets Chinese Market to Boost Exports and Support Local Industry

South Africa is stepping up efforts to expand exports to China after a new duty-free trade scheme helped increase shipments to its largest trading partner, as Pretoria seeks to diversify its markets and strengthen domestic industries.

South African exports to China rose nearly 25% year-on-year between May and August 2026, while imports from China increased by 23%, Chinese Ambassador Wu Peng said at a business event in Pretoria on October 22, according to Reuters.

The increase follows China’s introduction on May 1 of a temporary zero-tariff scheme for eligible exports from South Africa and other African countries. The arrangement is scheduled to run until April 30, 2028, subject to rules of origin and other requirements.

South Africa wants to use the improved market access to sell more than raw materials to Chinese buyers. The government has identified 100 value-added products with export potential, covering sectors such as agro-processing, beverages, pharmaceuticals, cosmetics, machinery, medical equipment, automotive products, chemicals and plastics.

Agricultural producers are among those seeking to benefit. South African exports of agricultural products to China increased by more than 35% year-on-year in the four months following the introduction of the scheme, reaching nearly $500 million, according to figures reported by Business Day.

The duty-free arrangement could improve the competitiveness of eligible products by reducing customs costs. However, exporters must comply with product-specific requirements and obtain valid certificates of origin to qualify.

South Africa’s revenue service issued 25,975 certificates of origin between June 1 and August 31, while customs declarations increased by 199% year-on-year, Trade Minister Parks Tau said.

Despite the growth in exports, trade between the two countries remains heavily tilted towards China.

South Africa exported approximately 222 billion rand ($13.5 billion) worth of goods to China in 2025, while imports from China reached about 420 billion rand, according to figures cited by Trade Minister Parks Tau.

Total bilateral trade reached 642 billion rand in 2025, up from 483 billion rand in 2021.

Pretoria wants to increase the share of higher-value products in its exports, encourage local processing and use stronger trade links to support industrial development and employment.

The government is also negotiating a longer-term trade arrangement with China through the Southern African Customs Union (SACU). The aim is to provide exporters with greater certainty after the temporary duty-free scheme expires in April 2028, while protecting local industries and jobs.

South Africa’s push towards China comes as relations with the United States face uncertainty over trade policy.

President Cyril Ramaphosa has said the country must prepare for the possibility of losing preferential access to the US market under the African Growth and Opportunity Act (AGOA), which allows eligible sub-Saharan African countries to export certain goods duty-free.

Expanding trade with China and other markets is therefore part of Pretoria’s broader effort to reduce its exposure to disruptions in established export destinations.

However, redirecting trade is not straightforward. Exporters must meet Chinese market standards, develop distribution networks and compete with suppliers from other countries. Increased access also does not automatically translate into new factories or jobs in South Africa.

The government’s stated objective is to turn stronger export demand into greater domestic production, investment and employment.

Whether the strategy succeeds will depend on the country’s ability to expand exports sustainably, increase the value added locally and secure predictable access to overseas markets beyond the current two-year arrangement.