MINISTER TAU SIGNS FRAMEWORK AGREEMENT ON ECONOMIC PARTNERSHIP FOR SHARED PROSPERITY (CAEPA)

Minister Parks Tau and his counterpart from the People’s Republic of China, Minister Wang Wentao, have signed the Framework Agreement on Economic Partnership for Shared Prosperity.

This landmark agreement will be followed by negotiation and conclusion of an Early Harvest Agreement by end of March 2026, which will then see China provide duty-free access to South African exported products and will enhance Chinese investment into South Africa. The CAEPA covers a number of areas including:

I. Trade Cooperation
II. Investment Cooperation
III. New Energy Cooperation
IV. Multi-lateral Cooperation

As this agreement is a framework, South Africa looks forward to working with China in a friendly, pragmatic, and flexible manner, while ensuring consistency with WTO principles and the development objectives of both sides, with a view to providing a stable and predictable environment for economic cooperation and win–win outcomes. Both sides intend to further expand bilateral trade, including by promoting the export of South African agricultural products and high-value manufactured goods to China. South Africa already exports a number of agrilcultural products to China including citrus and rooibos tea, amongst others.

“As China-South Africa relations continue to deepen, new opportunities emerge for South African businesses seeking to enter the Chinese market, particularly in sectors such as mining, agriculture, renewable energy, and technology”, Tau said.

China will send an inward buying mission to visit South Africa and invites South Africa to participate in the Country Exhibition and Business Exhibition of the 9th China International Import Expo (CIIE), which will be held in Shanghai, China in November 2026. China also invited South Africa for Steel Investment event to promote investment opportunites in South Africa in the steel industry.

South Africa is a major destination for Chinese investments in Africa and the leading African country in terms of actual investments in China. “We have seen a significant and steady increasing number of Chinese investments in South Africa, whilst South African companies are showing a growing interest in investing in the Chinese market. Chinese automotive companies are investing into the South African economy and creating much need employment opportunities. We look forward to attracting even more Chinese investment into South Africa, and also introducing many South African products into the Chinese market,” Minister Tau said.

The CAEPA is intended to enhance our bilateral trade relationship, with a view to find complimentarities in our economies and not to encroach on the sensitivities in our countries. We will negotiate with a view to create the necessary safeguards built into the agreement so as to protect South Africa’s industrial capacity.

“We hope that the signing of the Framework Agreement and the outcomes of our Joint Economic Trade Commission (JETC) meeting, will signal the urgency we attach to growing our bilateral trade and investment relations. Together with the Framework Agreement, these should provide a strong foundation for a mutually beneficial partnership and for our respective private sectors to do more business together,” Minister Tau remarked.