Manufacturing for Intra-Africa Trade: A Focused Response to China’s Dominant Position in Africa for South Africa

Abstract

An economic stabilization in China that is likely to be short-lived. Even before Covid-19 shook the foundations of the global economy, a range of material downside risks confronted Beijing. The lingering threat of further breakdown in relations with the US. The further erosion of the resilience of China’s financial system. The backdrop of all this is the ongoing structural slowdown, restructuring and rebalancing of the economy. Africa needs to metabolize these forces fast. Importantly, swimming against this more narrow, destructive and counter-productive tide, African nations have come together, doubling-down on regional integration, creating a continental free trade area. This then also, importantly, makes Africa a more alluring opportunity for China. Tying this all together, the chapter argues that the next phase of China–South Africa ties and partnership must more forcefully and single-mindedly prioritize tactics for further industrialization, job creation and technology transfer through Chinese investment in manufacturing industries. This must be on the table now, shaping ties in a manner that supports South African growth, development and intra-Africa trade. To this end, South Africa must make good on its commitment for incremental improvements in ease of doing business and competitiveness to create a better climate for partnerships.