The South African chapter of the BRICS Business Council has developed a flagship strategy to boost trade with China.
This follows a framework agreement signed in February this year between the South African Trade Minister Parks Tau and his counterpart from the People’s Republic of China, Minister Wang Wentao, in Beijing.
The Framework Agreement on Economic Partnership for Shared Prosperity covers cooperation in the following areas: trade, investment, new energy and multi-lateral relations.
Meanwhile, the BRICS Business Council has produced a strategy that aims to enhance South Africa’s export performance and address structural trade imbalances that affect trade between the two countries.
The document contains an “actionable roadmap” that consists of five steps.
1. Export Enablement and Scale
In keeping with this, the Council will “facilitate the formation of sector-based export consortia to aggregate supply, particularly among small and medium-sized enterprises.” According to the document: “This approach mirrors international best practice, enabling businesses to achieve scale, improve consistency, and strengthen their bargaining position in global markets.”
It adds that a “dedicated China Market Access Desk will be established to provide market intelligence, regulatory guidance, and partner matching services.”
2. Logistics and Supply Chain Optimisation
In order to address logistics constraints, the Council will “support private-sector partnerships to invest in supply chain infrastructure, including cold storage, warehousing, and alternative export corridors. Businesses will be encouraged to diversify logistics routes to enhance reliability and reduce costs.”
3. Value Addition and Industrial Development
According to the document: “A core pillar of the strategy is the transition from raw exports to value-added products. This includes agro-processing, branding, and packaging to capture higher margins and meet evolving consumer preferences in China.”
The Council will “promote co-manufacturing partnerships with Chinese firms to facilitate technology transfer, local production, and export-oriented industrialisation.”
4. Market Access and Demand Development
In terms of this step, “South African businesses will be supported in establishing direct distribution channels into China, including partnerships with e-commerce platforms and retail networks. A coordinated ‘Brand South Africa’ positioning strategy will be advanced to differentiate products based on quality, sustainability, and premium appeal.”
5. Investment and Financing
The Council says it will “advocate for the development of blended financing mechanisms to support export growth and infrastructure investment. Joint investment platforms between South African and Chinese firms will be prioritised, particularly in manufacturing and logistics.”
To achieve a more balanced and mutually beneficial trade relationship, the Council recommends:
– Diversifying export composition toward higher-value goods
– Increasing Chinese investment in productive sectors within South Africa
– Developing integrated bilateral value chains
– Leveraging data analytics to inform trade strategy
– Strengthening private-sector coordination mechanisms
According to the strategy, commercial priority sectors include:
– Agriculture and Agro‑processing – including fresh produce, wine, seafood, forestry products, and processed food inputs.
– Mineral Beneficiation and Industrial Inputs – including processed metals, alloys, catalytic products, and intermediate manufacturing inputs.
– Niche Manufacturing and Chemicals – specialised products serving defined industrial applications.
– Trade in Services – logistics, engineering, technical services, maintenance, and professional services linked to goods trade.
The strategy also includes a business-led action framework, made up of five pillars.
– Pillar 1: Export Readiness and Market Discipline South African firms should invest in market‑specific compliance, certification, quality assurance, and packaging aligned to Chinese buyer requirements.
– Pillar 2: Targeted Market Entry Export strategies should focus on specific regions, cities, distributors, or industrial buyers in China rather than on generic national-market approaches.
– Pillar 3: Value Addition Before Volume Expansion Businesses are encouraged to prioritise beneficiation, processing, and product differentiation prior to expanding export volumes.
– Pillar 4: Partnership‑Based Trade Models Long‑term supply contracts, joint ventures, and co‑investment structures should replace short‑term transactional exports.
– Pillar 5: Logistics, Reliability, and Delivery Performance Export competitiveness increasingly depends on reliability, logistics integration, cold‑chain management, and delivery consistency.
The South African Chapter of the BRICS Business Council will act as a convening and facilitation platform by:
– Coordinating sector‑specific working groups
– Facilitating business‑to‑business engagement
– Promoting bankable value‑addition projects
– Supporting partnership structuring and risk mitigation
