Why services, not goods, are Africa’s real key to China

For decades, the narrative of Africa-China trade has been straightforward and stubborn: Africa exports raw materials, and China exports manufactured goods back.

Although this relationship has increased volume, it has often not produced significant change or transformative value for African economies.

Kgomotso Modise chats to former member of the World Economic Forum's Global Agenda Council, Dr Martyn Davies, about how to improve trade within the China-Africa corridor.

Listen to the conversation below:

According to Davies, the time has come to rethink this model fundamentally.

He believes the main challenge for Africa, especially South Africa, is moving beyond commodities. “The opportunities lie in services,” Davies argues, suggesting that the traditional focus on competing in manufacturing is a battle many African economies have already lost due to “premature deindustrialisation.” The real, untapped potential lies not in what Africa can produce, but in the unique experiences and services it can offer.

The most promising low-hanging fruit? Tourism. The figures reveal a stark reality. In 2024, South Africa welcomed only 41,000 Chinese tourists—less than half the 93,000 visitors in 2019. This is a tiny fraction compared to the roughly 60 million Chinese tourists who travel globally each year. For context, countries like Georgia and Uzbekistan now draw more Chinese visitors than South Africa does.

Dr Davies points to a familiar but critical set of obstacles holding South Africa back: visa accessibility, marketing, flight connectivity, and above all, safety and ecurity. The perception of a country matters. “People want to go to a progressive country, a country better seen as succeeding or winning,” he states. Creating a welcoming and secure environment is not just a social imperative but an economic one.

He says the old transactional relationship is no longer enough. The future of Africa-China trade prosperity depends on a strategic pivot. By packaging its unique tourism assets, streamlining access, and decisively addressing safety concerns, Africa can create a powerful new "services export" sector.

This shift from raw materials to rich experiences could finally unlock a more balanced, sustainable, and profitable trade partnership with the world’s second-largest economy. The opportunity is massive; the need for decisive action is now.

China Unlocked is brought to you by Standard Bank Business and Commercial Unlocked China for your business, find partners, cut costs and grow. China is a major food importer, which means South Africa can position itself as a reliable supplier while developing regional agroprocessing value chains.