China committed to invest $14.7 billion in South Africa and provide loans to its state power utility and logistics company as the two nations look forward to make the economic ties stronger and increase trade. The rand acquired.
The commitment follows alike promises from Saudi Arabia and the UAE and bolsters President Cyril Ramaphosa’s campaign to attract $100 billion in investment to South Africa in the next five years, as he seeks to improve a flagging economy ahead of elections upcoming year.
The investment pledge and loans, the largest yet from the Asian nation to South Africa, were reported after a meeting between Ramaphosa and his Chinese counterpart, Xi Jinping, in Pretoria on Tuesday.
Ramaphosa, who took office in February, stated to the reporters, “China is ready to invest and work with South Africa in various sectors.” He even said, “We also recognized that although trade figures have grown steadily over the past few years, bilateral trade has not reached its potential.”
Xi is on an official state visit to South Africa ahead of the 10th summit of the BRICS nations – Russia, Brazil, China, India and South Africa – that starts in Johannesburg on Wednesday and will also focus to bolster political and trade bonds. China is South Africa’s largest trading partner.
Cash-strapped power utility Eskom Holdings SOC Ltd. obtained a $2.5 billion long-term loan facility with China Development Bank, taking the funding it has secured to almost two-thirds of what it requires for this year.
Port and freight rail operator Transnet SOC Ltd. agreed to a long-term loan with Industrial & Commercial Bank of China Ltd., and Naspers Ltd., the largest investor in Chinese internet giant Tencent Holdings Ltd., signed a multi-currency facility accord with Bank of China.
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