China has signed a landmark trade agreement with South Africa that will grant duty-free access to South African exports, a move expected to significantly boost bilateral trade and investment between the two countries.
The Minister of Trade, Industry and Competition, Parks Tau, signed the agreement with the People’s Republic of China on 6 February 2026. According to the Department of Trade, Industry and Competition (DTIC), the agreement is formally titled the Framework Agreement on Economic Partnership for Shared Prosperity, also known as the China-Africa Economic Partnership Agreement (CAEPA).
What the CAEPA Covers
In a statement released on 6 February, the DTIC said the CAEPA covers key areas including:
-
Trade cooperation
-
New energy cooperation
-
Investment cooperation
-
Multilateral cooperation
The agreement is also expected to unlock increased Chinese investment into South Africa, particularly in strategic sectors.
Duty-Free Access by March 2026
The DTIC confirmed that an Early Harvest Agreement will be concluded by the end of March 2026. This will allow South African businesses to export selected products to China on a duty-free basis.
The department said both countries intend to expand bilateral trade, with a strong focus on increasing exports of agricultural products and high-value manufactured goods to the Chinese market.
Tau welcomed the deal, saying it would open new opportunities for South African businesses seeking to enter or expand within China.
“The CAEPA will create new opportunities for South African companies in mining, technology, renewable energy and agriculture,” Tau said.
Investment and Trade Promotion
As part of the agreement, China has invited South African businesses to participate in the 9th China International Import Expo. In addition, China will send an inward buying mission to South Africa to explore trade and investment opportunities.
China and South Africa are both members of the BRICS bloc and have maintained strong trade relations in recent years.
In 2024, the two countries concluded a bilateral trade agreement allowing the export of South African chicken feet to China, valued at approximately R300 million. Tourism and trade agency Wesgro, along with four banks, were involved in facilitating the deal.
Broader Economic and Strategic Cooperation
China has also been linked to several large-scale investment and cooperation projects in South Africa. Reports indicate that the Chinese government will contribute a significant portion of the R500 million required to refurbish a key South African military base in Bloemfontein.
In addition, it has been alleged that a R260 million military aid and assistance agreement was signed between South Africa and China in Beijing in 2024.
Mixed Public Reaction
While government has hailed the CAEPA as a major economic boost, public reaction to the deal has been mixed, with some South Africans expressing concerns about trade imbalances and local industry protection.
The DTIC maintains that the agreement is designed to promote shared prosperity and position South African exporters more competitively in one of the world’s largest consumer markets.
