An exhibitor displays a product at the booth of South Africa at the sixth CIIE in Shanghai on 6 November (XINHUA)

As China and South Africa celebrate the 25th anniversary of the establishment of diplomatic relations, a growing number of South African companies are aiming to explore the Chinese market for growth opportunities. Some of these companies made their debut at this year’s China International Import Expo (CIIE) in Shanghai. Lesira-Teq, a company that designs, manufactures and supplies smart water metres, is among them.  

Previously, the company mainly focused on the African market. However, Africa’s overall market size and consumer demand are limited. Therefore, the company decided to take its first step beyond Africa by participating in the CIIE. “The expo has built a broad platform for us foreign enterprises to enter the Chinese market. It is also a large platform for global companies to learn from each other’s strengths and complement each other’s resources,” Raymond Macheli, head of the business department at Lesira-Teq, told ChinAfrica.  

South Africa was one of the five guest countries of honour at this year’s CIIE, which is expected to strengthen South Africa’s economic ties with China. 

“The CIIE is a great platform for companies from diverse countries to showcase their products and services and engage in one-on-one meetings with manufacturers,” said Zanele Carol Sanni, chief director of export promotion and marketing at the Department of Trade and Industry of South Africa.  

Guest of honour 

South Africa’s booth was one of the most attractive at the expo. In the pavilion, a wide range of companies from diverse sectors, including medical equipment, clothing and textiles, cosmetics, metals, mining and engineering services, manufacturing as well as aerospace and defence technologies, displayed their products and services.  

South African Deputy President Paul Mashatile visited Shanghai to attend the expo this year. At the opening ceremony of the expo on 6 November, he said that the CIIE allows companies worldwide to display their products and services and expand their network of partnerships.  

“I am pleased to share that our two governments will continue to explore various avenues of strengthening and deepening our longstanding economic, trade and people-to-people relations. We are confident that we are making products that will be able to advance our bilateral trade,” he said. 

Mashatile said that this year South Africa has optimised the space at the Country Exhibition zone for trade and investments, where 25 South African entities including provincial trade and investment agencies, export councils and manufacturers have received support to showcase their exhibits.  

The country has also secured additional space at the Enterprise and Business Exhibition area, where 11 enterprises displayed agricultural and agro-processing products from South Africa. 

People pose for photos at the booth of South Africa at the sixth CIIE in Shanghai on 6 November (XINHUA) 

Substantial benefits 

The South Africa wine industry’s presence in China has been growing and so has Chinese investment in South Africa’s wineries. This year, the Wines of South Africa (WOSA), an industry organisation responsible for promoting South African wine exports to key international markets, came to the CIIE to look to further increase its market share in China. 

“More than 20 South African wine companies came to participate in the CIIE. The Chinese market presents enormous potential for South African wineries to expand their presence in the country,” said Marcus Ford, Asia market manager at WOSA. 

Many Chinese consumers favour South African wines. “Several years ago, I drank wines made in Australia. After more wines from South Africa became available in China, I came to know that South Africa produces some of the best wines because it has good environment to ensure the overall quality of grapes,” Xiao Ran, a Chinese wine lover, told ChinAfrica. 

Ford said the CIIE provides opportunities for participating South African wineries to nurture existing relationships and develop new ones in the world’s second-largest economy. 

“We have seen significant growth in our market share in China over the past several years, and we look forward to expanding it in the coming years,” he said. Ford said he is optimistic about the wine market in China as the country’s middle class continues to grow. 

Western Cape is South Africa’s leading agricultural export province, accounting for almost half of the country’s agricultural exports. In recent years, the CIIE became a platform for the province’s exporters to capitalise on China’s growing demand for quality products. 

The Cape Town and Western Cape Tourism, Trade and Investment Promotion Agency (Wesgro) has attended the expo since pre-COVID-19 times. In previous years, the agency received positive feedback from its exporters, who continue to look for Wesgro’s support on attending the expo. 

“The expo is a great platform to connect our exporters with potential buyers and investors from Asia,” Thiru Naidoo, senior trade manager at Wesgro, told Xinhua News Agency. This year, the agency supported 10 Western Cape exporters to attend the event and exhibit products such as teas, wines and seafood. Matchmaking platforms such as the CIIE “will be hugely beneficial for our Western Cape exporters” trying to enter the Chinese market, Naidoo said. 

According to the data released by Wesgro, China is Western Cape’s sixth-largest export market, with 2022 exports surpassing $550 million, a year-on-year growth of 6.28 percent. 

A burgeoning partnership 

This year marks the 25th anniversary of the establishment of China-South Africa diplomatic relations. The two countries have enhanced their wide-ranging bilateral relations in the past 25 years, elevated the relationship to a comprehensive strategic partnership and adopted the 10-Year Strategic Programme of Cooperation (2020-2029). 

South African Ambassador to China Siyabonga Cyprian Cwele told ChinAfrica that “The trade ties between China and South Africa are full of vitality and potential.” Cwele said that over the past 25 years, China-South Africa economic and trade relationship has developed rapidly from $1.4 billion in 1998 to $56.7 billion in 2022, an increase of nearly 40 times. China has been South Africa’s largest trading partner since 2009, and South Africa has been China’s largest trading partner in Africa since 2010. 

South Africa’s main exports to China include iron ore, steel, agricultural products, chemical products, as well as wood and pulp. The main products imported by South Africa from China include mechanical equipment, steel products, chemicals, textiles, as well as vehicles and ships. According to Cwele, more than 180 Chinese companies have successfully conducted business in South Africa, covering areas such as energy, mining, technology, automotive industry, heavy equipment, and financial services. 

In the future, South Africa will export more value-added products to the Chinese market, according to Mashatile. “Historically, we have been exporting raw materials, but we want to engage in making finished goods. So, we are inviting Chinese businesspeople to come to South Africa to manufacture. In that way, South Africa can create jobs,” he said.