Mashatile's India Trip Seals Trade Deals Worth Billions for South Africa

Deputy President Paul Mashatile touched down in New Delhi on Monday, kicking off a three-day visit that South African officials say could unlock billions in new trade and investment flows between Africa's most industrialised economy and the world's fifth-largest economy. The trip marks the first high-level bilateral engagement under the newly formed South Africa-India Strategic Economic Cooperation Framework.

The South African delegation includes Trade and Industry Minister Ebrahim Patel, Small Business Development Minister Stella Ndabeni-Abrahams, and a 45-member business delegation representing sectors from agro-processing to green hydrogen. Indian External Affairs Minister S. Jaishankar received Mashatile at Hyderabad House, where the two sides signed a memorandum of understanding on manufacturing cooperation.

Trade targets top $4 billion by 2027

South African officials revealed the two countries have set a joint target of $4.2 billion in bilateral trade by 2027, up from approximately $2.8 billion recorded in 2023. Current exports from South Africa to India include coal, iron ore, and citrus fruits, while imports from India are dominated by refined petroleum products, pharmaceutical ingredients, and automotive components.

Patel told reporters the visit aims to diversify this trade basket. "We are not satisfied with raw commodity exports," he said in New Delhi. "We want to see more South African manufactured goods entering Indian markets — specifically in sectors where we have competitive advantages like mining equipment, chemicals, and renewable energy technology." The minister added that South Africa is seeking Indian investment in special economic zones being developed in the Durban-KwaZulu Natal corridor.

Green hydrogen dominates investment talks

A cornerstone of the visit is a proposed $1.3 billion Indian investment in South Africa's nascent green hydrogen sector. India-based renewable energy firm ReNew Power signed a preliminary agreement with South Africa's Industrial Development Corporation to explore co-development of green hydrogen production facilities in the Northern Cape province.

The deal aligns with South Africa's just energy transition framework, which seeks to shift away from coal dependency while creating new industrial jobs. South Africa's Green Economy Minister, Dr. Blade Nzimande, who travelled with the delegation, said the partnership could create up to 12,000 direct jobs over five years. "This is exactly the kind of south-south cooperation that African nations need," Nzimande told the Johannesburg Mail during a press briefing. "We are building value chains, not just exporting raw materials."

Pharmaceutical and health sector cooperation

Beyond energy, health sector cooperation featured prominently in the talks. India's Sun Pharmaceutical Industries announced a $200 million investment in a generic drug manufacturing plant near Johannesburg. The facility, expected to begin production by late 2026, will focus on antiretrovirals and medications for non-communicable diseases — a priority area given South Africa's high burden of HIV, hypertension, and diabetes.

Dr. Anil Kumble, managing director of Sun Pharma's African operations, said the plant would initially employ 800 workers and source active pharmaceutical ingredients from both Indian and South African suppliers. "Our goal is to reduce dependence on imported medicines and make essential drugs more affordable for South African patients," he explained.

Criticism and domestic concerns

Not all reactions have been positive. South Africa's trade unions have raised concerns about the potential flooding of domestic markets with cheaper Indian goods. The Confederation of South African Trade Unions issued a statement warning that without strong local content requirements, the trade deals could "export jobs rather than create them."

Mashatile acknowledged these concerns during a roundtable with Indian and South African business leaders. "We will protect industries that need time to become globally competitive," he said. "But we cannot hide behind protectionism forever. The market access we gain in India must translate into real gains for South African workers and communities."

Implications for African continental trade

The visit carries weight beyond bilateral relations. South Africa, as the African Union's chair for 2025, has made intra-continental trade a diplomatic priority. Analysts say the India deal could serve as a template for similar engagements between African nations and Asian economies.

Dr. Miriam Makeba, director of the African Trade Policy Centre at the UN Economic Commission for Africa, said such agreements matter for the continent's development. "South Africa using its AU chairmanship to broker deals that create industrial capacity — that is the kind of leadership Africa needs," she said. "The test will be whether these investments actually transfer technology and skills to South African workers."

The deal also comes as the African Continental Free Trade Area continues to expand. India has observer status in AfCFTA negotiations, and both sides expressed interest in exploring how the new South Africa-India framework could complement broader African trade integration efforts.

What happens next

The delegation returns to Johannesburg on Thursday. Business leaders from both countries have 90 days to finalise term sheets for the priority projects identified during the visit. The South African cabinet is expected to review the outcomes and present a progress report to parliament by September.

Watch for whether the green hydrogen investment receives final investment commitment before South Africa's next budget cycle in February. If approved, it would represent the largest single Indian investment in South Africa since theInfosys technology campus opened in Johannesburg in 2019.