CYRIL HITS BIG JACKPOT WITH MASSIVE CHINESE INVESTMENT DEAL
President secures R466.7-billion commitment from Beijing, aime at infrastructure‚ the ocean economy‚ the green economy‚ science and technology.
President Cyril Ramaphosa has secured close to $35-billion (R466.7-billion) worth of investment for South Africa in July so far.
On Monday he sealed $14.7billion (R196-billion) worth of investment commitment from China during a state visit to the Union Buildings by the Asian economic powerhouse.
Ramaphosa said the commitment‚ along with several agreements and memorandums of understanding that were signed between the two countries‚ would “deepen” the 20-year-old trade relationship between SA and China.
“President Xi has indicated that China is ready to invest in and work with South Africa in various sectors such as infrastructure‚ the ocean economy‚ the green economy‚ science and technology‚ agriculture and the environment, as well as finance,” said Ramaphosa after a meeting with his Chinese counterpart‚ Xi Jinping.
The investment commitment comes barely two weeks after Ramaphosa secured back-toback $10-million (R133.3-million) investments with Saudi Arabia and United Arab Emirates respectively.
The latest investment deal with China takes Ramaphosa closer to his target of $100billion (R1.33-trillion) worth of investment within his first year in the presidential seat.
Other agreements reached during the China state visit include simplification of visa requirements‚ a joint declaration of international development cooperation and a $2.5-billion (R33.3-billion) loan to Eskom by the China Development Bank.
Eskom chief executive Phakamani Hadebe said the loan would boost the power utility’s funding to 62% for the current financial year.
Hadebe said the loan was a “normal commercial loan” which is guaranteed by the South African government.
Jinping emphasised a need for the two countries to continue working together on trade and political issues, given the longstanding relations between the two countries‚ which were “normalised” by former president Nelson Mandela.
Meanwhile‚ minister of trade and industries Rob Davies said South Africa was giving more than it got in its investment partnerships with Brics countries – and this had to change.
Davies was speaking to media on the sidelines of the China visit to the Union Buildings.
He revealed that the inward quantum investment to South Africa by Brics countries between 2003 and 2017 was $18billion (R239.9-billion).
This was in sharp contrast to the $60-billion (R799.9-billion) outward investment by South Africa to Brics countries.
Davies decried the budding trade war between the United States and China‚ saying it was hurting SA badly.
He explained: “We are not the main target of the trade war but we have become collateral damage.
“It has already impacted on us in the imposition of the steel and aluminium tariffs.”
We are not the main target of the trade war but we have become collateral damage