South Africa, India Seek to Deepen Technology, Trade and Skills Partnership

Mashatile highlighted that the world is currently facing a range of interconnected challenges, including climate change, resource depletion, economic uncertainty and increasing unilateralism.

South Africa's Deputy President Paul Mashatile has called on Indian business leaders and investors to deepen their engagement with South Africa in order to build industries that generate employment, foster technological advancement and develop critical skills for the future economy. Speaking at the South Africa-India Technology, Trade and Investment Roundtable, Mashatile emphasized the importance of strengthening cooperation between the two countries as they navigate global economic, technological and environmental challenges.

Mashatile highlighted that the world is currently facing a range of interconnected challenges, including climate change, resource depletion, economic uncertainty and increasing unilateralism. However, he argued that these challenges also present opportunities for countries to collaborate on innovative solutions that promote sustainable growth and inclusive development. According to the Deputy President, South Africa and India are well-positioned to transform these challenges into opportunities through strategic partnerships focused on technology, industrial development, skills training and investment.

South Africa and India Can Leverage Complementary Economic Strengths

A central theme of Mashatile's address was the strong complementarity between South Africa's industrial and entrepreneurial capabilities and India's highly successful Micro, Small and Medium Enterprises (MSME) ecosystem. He noted that both countries possess unique strengths that, when combined, can create significant economic opportunities for businesses and workers alike.

Mashatile proposed the establishment of a South Africa-India Small, Medium and Micro Enterprise (SMME) Industrial Linkage Programme to capitalize on the advantages. The proposed initiative would focus on integrating supply chains, encouraging co-production and expanding joint access to domestic and international markets. Rather than limiting cooperation to trade facilitation alone, the programme would aim to create deeper industrial partnerships that contribute directly to economic growth and job creation.

The Deputy President identified several sectors where collaboration could produce substantial benefits. These include agro-processing, mining beneficiation, renewable energy components, pharmaceuticals and digital services. These industries are considered strategic because they have the potential to generate employment, stimulate investment and strengthen economic resilience.

Mashatile stressed that future cooperation should be designed around modern digital capabilities. India's experience in building technology-enabled MSMEs through the use of artificial intelligence, automation and digital platforms provides valuable lessons for South Africa as it seeks to improve the competitiveness of its own small business sector. By integrating digital technologies into industrial development strategies, both countries can improve productivity and create new opportunities for entrepreneurs and workers.

The proposed industrial linkage programme represents a shift toward more meaningful economic integration. Instead of focusing solely on the exchange of goods, the initiative seeks to promote joint manufacturing, knowledge sharing and value-added production that can benefit both economies over the long term.

Technology Co-Creation and Digital Infrastructure Must Become Priorities

Another major focus of Mashatile's remarks was the importance of moving beyond traditional technology transfer models toward technology co-creation. He argued that both countries should actively participate in shaping future technologies rather than merely adopting innovations developed elsewhere.

Artificial intelligence was highlighted as one of the most transformative technologies of the coming decades. According to Mashatile, AI will increasingly influence competitiveness across a wide range of sectors, including mining, logistics, retail and public administration. As a result, South Africa and India should work together to become active contributors to AI development and governance.

The Deputy President emphasized that technological progress must be accompanied by responsible governance frameworks. Cooperation between the two countries should therefore include discussions on AI ethics, regulation and public trust. Ensuring that technological innovation remains aligned with societal values will be essential as AI becomes more deeply integrated into economies and public institutions.

Mashatile also called for greater investment in digital infrastructure across Africa. He encouraged businesses to invest in data centres, cloud computing infrastructure and fibre connectivity to support the growth of the continent's digital economy. Such investments are viewed as critical for enabling businesses to scale, improving access to digital services and supporting innovation-driven growth.

The African Continental Free Trade Area (AfCFTA) was identified as a major opportunity that could be strengthened through improved digital infrastructure. By enhancing connectivity and technological capabilities, businesses operating across Africa would be better positioned to take advantage of the larger integrated market created under the AfCFTA framework.

India's expertise in technology development and digital transformation could play an important role in helping South Africa and other African countries accelerate their digital modernization efforts. Through joint investments and collaborative innovation, both nations can contribute to building a stronger and more competitive digital economy.

Investment, Manufacturing and Critical Minerals Offer Major Growth Opportunities

Mashatile also highlighted the importance of expanding investment partnerships between South Africa and India. While India already maintains a significant investment presence in South Africa, he believes there is considerable potential to deepen these economic ties through new manufacturing and beneficiation-focused projects.

Particular attention was given to critical minerals, which are becoming increasingly important in the global transition toward cleaner energy and advanced technologies. South Africa possesses substantial reserves of strategic minerals such as platinum group metals, manganese and vanadium. These resources are essential for a range of industries, including renewable energy technologies, electric vehicles and advanced manufacturing.

The Deputy President encouraged Indian investors to participate in beneficiation-led projects that add value to these resources before export. By processing and manufacturing products locally, South Africa can create more jobs, strengthen industrial capacity and capture a greater share of economic value from its natural resources.

Pharmaceuticals and renewable energy technologies were also identified as promising areas for investment. Both sectors have experienced significant global growth in recent years and offer opportunities for joint manufacturing ventures that can serve African and international markets.

Mashatile's vision extends beyond resource extraction and traditional trade relationships. Instead, he advocates for industrial partnerships that encourage local production, technology sharing and long-term economic development. Such an approach would allow South Africa and India to build more resilient supply chains while reducing dependence on external markets and suppliers.

The Deputy President's emphasis on manufacturing reflects broader efforts to promote industrialization across Africa. By attracting investment into productive sectors, countries can diversify their economies, improve export competitiveness and create sustainable employment opportunities.

Skills Development and Innovation Ecosystems Will Shape Future Cooperation

Recognizing that technological advancement requires a skilled workforce, Mashatile devoted considerable attention to the issue of education and skills development. He noted that South Africa can learn valuable lessons from India's success in technical training and workforce development.

The Deputy President identified software engineering, artificial intelligence, advanced manufacturing and green technologies as priority areas where skills development will be essential. To address these needs, he proposed the creation of a South Africa-India Skills and Innovation Exchange.

This initiative would be built around partnerships between universities, youth technology programmes and vocational training institutions. The goal would be to ensure that educational programmes remain aligned with industry demands and prepare young people for emerging employment opportunities.

Mashatile also highlighted the potential for stronger collaboration between innovation hubs in both countries. Cities such as Cape Town and Johannesburg in South Africa, along with Bengaluru and Hyderabad in India, have become important centres for entrepreneurship and technological innovation. Connecting these ecosystems could create what he described as an "Africa-Asia Innovation Bridge."

Such a bridge would facilitate cooperation among start-ups, investors, researchers and technology companies. It would also support co-investment opportunities and help innovative businesses expand into new markets. Strengthening innovation networks can play a crucial role in accelerating economic growth and technological progress.

The Deputy President further pointed to the growing role of India-affiliated Global Capability Centres operating in South Africa. These centres can leverage South Africa's skilled workforce and strategic location to support operations across the African continent. Their expansion could contribute to job creation, skills development and increased foreign investment.

To ensure that cooperation produces measurable outcomes, Mashatile proposed three flagship initiatives. The first is the launch of the South Africa-India SMME Industrial Linkage Programme within the next year. The second is the establishment of at least two joint technology or pharmaceutical manufacturing projects designed to serve African markets. The third is the implementation of a South Africa-India Youth Technology Skills Programme focused on artificial intelligence, digital services and advanced manufacturing.