(240821) -- POSTMASBURG, Aug. 21, 2024 (Xinhua) -- Staff members work at the Redstone Concentrated Solar Thermal Power Project near Postmasburg in Northern Cape Province of South Africa, Aug. 20, 2024. The project is one of the country's biggest renewable energy power plants. (Xinhua/Zhang Yudong)

South Africa and Kenya have taken significant steps to deepen trade and investment ties with China, as Beijing moves closer to granting broad duty-free access to African exports and positioning the continent as a strategic partner in its global trade architecture.

South Africa secures framework for zero-tariff access

China and South Africa on Friday signed a framework agreement on economic partnership for shared prosperity, a move expected to accelerate two-way trade, investment and industrial cooperation.

China’s Minister of Commerce, Wang Wentao, said the agreement reflects the depth of bilateral cooperation and creates a pathway for further expansion of trade.

Under the framework, China will work toward granting South Africa zero tariffs on 100% of its exports, in line with World Trade Organization rules. Wang said the agreement would provide a long-term, stable and predictable institutional foundation for elevating economic and trade cooperation between the two countries.

The deal aligns with China’s broader announcement last year that it would grant zero-tariff treatment to all 53 African countries with diplomatic relations with Beijing, with negotiations now progressing toward implementation with South Africa and Kenya.

South Africa’s Minister of Trade, Industry and Competition, Parks Tau, said the agreement opens new opportunities for South African firms seeking access to China’s vast market, particularly in mining, agriculture, renewable energy and technology.

He added that the framework is also expected to stimulate increased Chinese investment into South Africa, especially in sectors that support job creation, local manufacturing and technology transfer.

South Africa is already one of China’s leading investment destinations on the continent and the largest African source of actual investment into China. Tau noted a steady rise in Chinese automotive and industrial investments in South Africa, alongside growing interest from South African companies looking to expand into the Chinese market.

Kenya moves toward near-total duty-free access

At the same time, Kenya has reached a preliminary trade agreement with China that would grant duty-free access to 98% of Kenyan exports, with a full agreement expected to follow.

Kenya’s Cabinet Secretary for Investment, Trade and Industry, Lee Kinyanjui, said once finalised, the deal would allow Kenyan goods to enter China without tariffs or volume restrictions—unlocking access to a consumer market of more than 1.4 billion people.

Kinyanjui said the agreement forms part of Kenya’s broader strategy to reposition itself as a regional trade champion and deepen economic engagement with China.

“Africa has much to learn from China’s development experience,” he said, adding that Kenya has developed a clear vision for expanding bilateral trade and capturing value in high-demand sectors.

Kenyan farmers are expected to be among the biggest beneficiaries of the agreement, particularly producers of avocados, tea, coffee and flowers—commodities that have seen rising demand across Asian markets. The government plans to deploy extension and quality-control officers nationwide to help farmers meet China’s export standards.

“China’s market is vast,” Kinyanjui said. “If even a small fraction of its demand is met by Kenyan produce, the impact on employment, youth livelihoods and rural incomes could be transformational.”

From market access to value addition

Beyond primary exports, Kenyan authorities see expanded access to China as a catalyst for agro-processing and value-added manufacturing, helping move the country up the value chain while supporting sustainable development goals.

For South Africa, the economic partnership framework reinforces Beijing’s role as a key trade and investment partner at a time when global trade relationships are becoming increasingly fragmented.

Taken together, the progress made by South Africa and Kenya signals a broader shift in Africa–China trade relations—from preferential access in principle toward concrete agreements that could reshape export flows, industrial development and investment patterns across the continent in the years ahead.

error: Content is protected !!