South Africa is positioning itself as a manufacturing and export hub for Chinese companies seeking to expand into African markets, with new investment flowing into sectors such as textiles, footwear and manufacturing under the Belt and Road Initiative (BRI).
Delivering a keynote address at the University of Johannesburg, Stavros Nicolaou, a Council Member of the South African Chapter of the BRICS Business Council, said cooperation between South Africa and China was setting “new benchmarks for South–South collaboration” and driving a shift from resource extraction to value-added industrial growth.
“Our cooperation under the Belt and Road Initiative shows that emerging economies can lead with innovation, inclusivity and purpose,” Nicolaou told delegates at a dialogue co-hosted by the China Media Group Africa Bureau. “We are building a foundation on which future generations of business leaders can flourish in an interconnected global environment.”
South Africa became the first African country to sign a BRI cooperation memorandum with China in 2015, while the BRI has expanded to 53 African nations since its launch in 2013, attracting $21.7 billion in project deals in 2023 alone. The deals included major infrastructure, renewable energy, and logistics projects that are transforming the continent’s growth trajectory.
Nicolaou pointed to landmark projects such as the De Aar I and II wind farms in the Northern Cape, which generate 244.5 megawatts of renewable energy, as well as growing Chinese investment in automotive, textiles and footwear production.
“Chinese firms are diversifying into Africa, and South Africa offers a platform with strong logistics, financial and skills advantages,” he said. “We are seeing early signs of localisation in manufacturing that can boost employment and technology exchange.”
The textile and footwear sectors, once major employers in South Africa, have drawn renewed attention as Beijing and Pretoria discuss industrial park collaborations under the BRI. Officials say the goal is to produce higher-value goods locally rather than importing finished products, creating jobs in spinning, weaving and design while broadening export capacity across the Southern African region.
Nicolaou said aligning South Africa’s industrial policy with China’s manufacturing and vocational-training model was key to unlocking the next phase of growth. He cited joint ventures in advanced manufacturing, mining technology and communications as examples of how bilateral partnerships were expanding opportunities for entrepreneurs.
Agricultural trade has also deepened. According to Wandile Sihlobo, who chairs the Agribusiness Working Group at the SA Chapter of the BRICS Business Council, China now buys about 70 per cent of South Africa’s wool exports, and new protocols have opened its market to stone fruit and avocados. In 2024, South Africa exported a record US $13.7 billion in agricultural goods, with Africa, Asia and the Middle East among its largest destinations.
Nicolaou called for a renewed focus on value-added exports, small-business access to Chinese markets and stronger technology-transfer mechanisms.
“Our goal is to move from extraction to innovation,” he said. “By reducing trade barriers, encouraging investment and enhancing cooperation, partnerships like ours can deliver enduring economic transformation.”
