China has committed to invest $14.7 billion in South African as the two countries seek to deepen trade and bilateral relations.
According to President Cyril Ramaphosa Chinese president Xi Jinping indicated that China is ready to invest and work with South Africa in various sectors including infrastructure development, the ocean economy, green economy, science and technology, agriculture, environment and finance.
“We have signed several agreements and memoranda of understanding that are intended to further deepen our relations, including investment commitments to the value of US$14.7 billion,”Ramaphosa announced on Tuesday after the State visit by Chinese President Xi Jinping.
Some of the agreements signed are in trade and industry, agriculture and science and technology, including a visa agreement.
Several South African State-owned companies also benefitted. These are Transnet, Naspers and power utility Eskom.
The power SOC bagged a $2.5 billion loan agreement with China’s Development Bank.
Eskom CEO Phakamani Hadebe told the media that the $2.5 billion loan agreement is strategic both for investment and capital growth.
“At the beginning of the year, we indicated we need to borrow R72 billion to operate efficiently. Since January, we have raised R57 billion. Today we signed $2.5 billion. This amount moves our funding from 22% to 66%,” he said.
The two countries also committed to further increase development cooperation in infrastructure, trade, technology and financial cooperation to unlock collaboration potential.
“We support the proposed investment summit and we will be taking active measures to support the government of South Africa in achieving its developmental agenda,” said President Xi Jinping.