South African President Cyril Ramaphosa’s state visit to China is expected to open and strengthen economic ties and attract investment to the country. During his visit, Ramaphosa will on Tuesday travel to Shenzhen, a major economic and technology hub in Guangdong Province, where he will engage with industry leaders and tour the headquarters of leading battery and tech companies.
A key highlight of the visit is expected to be a tour of BYD Auto Co., Ltd, a global leader in the manufacturing of electric vehicles (EVs) and batteries. BYD’s FinDreams Battery Co., Ltd is the largest lithium-ion battery firm in the world, making this visit a significant opportunity for South Africa. Ramaphosa’s visit could potentially spur investment in South Africa’s EV sector, create jobs, and drive the industrialisation of battery metals in the country, particularly Nickel-Manganese-Cobalt (NMC) batteries, simultaneously assisting South Africa’s commitment to Stated Policy Scenarios(STEPS) and other Net Zero Emissions targets.
Industrialisation of Battery Metals
South Africa is rich in battery metals such as platinum, lithium, manganese, nickel, and cobalt, which are crucial components of EV batteries. The visit to BYD could lead to partnerships and investments that would enable the country to industrialise these metals, creating a new era of economic growth and job creation.
BYD’s pioneering leadership has been defined by its extensive vertical integration, enabling the company to control the entire supply chain from raw material extraction to battery and electric vehicle production, thereby making China a dominant player in new energy vehicles. By owning stakes in lithium mines and integrating downstream processing, BYD has achieved unparalleled control over its manufacturing process compared to other automakers.
Addressing the South Africa-China Business Forum
The President will address the South Africa-China Business Forum on Wednesday, 4 September 2024, on the margins of the FOCAC in Beijing. This platform will provide an opportunity for him to showcase South Africa’s investment potential and strengthen business ties between the two nations.
In 2018, China committed to injecting $14.7 billion into the South African economy and providing loans to embattled power utility Eskom and other SOEs, following a meeting between Presidents Cyril Ramaphosa and Xi Jinping in Pretoria. This significant investment pledge and loan agreement marked a major milestone in strengthening bilateral economic relations and boosting trade between the two nations.
On Thursday, 5, September 2024, President Ramaphosa, will participate in the FOCAC Summit held under the theme, Joining Hands to Advance Modernisation and Build a High-Level China-Africa Community with a Shared Future.
Editor/Lloyd Nedohe/ESGFrontiers| info@esgfrontiers.co.za
