Chinese electric vehicle manufacturer BYD is exploring investment opportunities in South Africa, according to Trade, Industry, and Competition Minister Parks Tau. The company has expressed interest in working with South Africa, leveraging the country’s automotive expertise and access to key resources like lithium and manganese for battery production.
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During the Forum on China-Africa Cooperation (FOCAC), Tau accompanied President Cyril Ramaphosa to BYD’s Shenzhen headquarters, where they were impressed by the company’s advanced EV technology.
Chinese EV makers are facing increasing geopolitical pressures as they expand into international markets. The US has imposed tariffs, and the EU has raised duties on Chinese-made EVs. These measures have prompted Chinese companies to reassess their global strategies.
Tau emphasized South Africa’s commitment to working with Chinese companies in the EV industry. He highlighted ongoing discussions with BYD and other Chinese EV-related companies to promote industrialization on the African continent.
At FOCAC, Chinese leader Xi Jinping pledged US$50 billion in financial support for Africa over three years, including $10 billion in investment from Chinese companies. Li Qiang, China’s number 2, called for deeper economic integration between China and Africa, encouraging Chinese companies to localize operations, create jobs, and train local talent.
While the African market for electric and plug-in hybrid vehicles is still developing, Chinese companies are making early investments in the supply chain. Xiaomi has expressed interest in increasing investment in Africa and collaborating with local firms in the EV sector.
BYD has entered several African markets, including Tunisia, Rwanda, Morocco, and South Africa, following the trend of other Chinese car brands like SAIC Motors and Xpeng.
