By Enyichukwu Enemanna
The President of South Africa, Cyril Ramaphosa has dismissed insinuations that Chinese investments in Africa were driving the continent into a “debt trap”.
Instead, he says the deals are part of a mutually beneficial relationship.
Ramaphosa made the remarks on the sidelines of the ongoing China-Africa summit in Beijing, where about 50 delegates comprising African leaders are participating in the three-day yearly event.
“I don’t necessarily buy the notion that when China (invests), it is with an intention of, in the end, ensuring that those countries end up in a debt trap or in a debt crisis,” Ramaphosa said, when asked by reporters about China’s pledge at the summit of $51 billion in new funding for Africa.
Heritage Times HT reports that Chinese leader, President Xi Jinping pledged on Thursday to assist debt-ridden Africa with nearly $51 billion fresh funding over three years, in addition with at least 1 million jobs.
The Chinese leader committed 360 billion yuan ($50.70 billion) in financial assistance over three years, but specified that 210 billion would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies.
Analysts say the disbursement of the fund in Chinese yuan is in effort to internationalise the currency.
The resource-rich Africa has in recent years become the focus of intense geopolitical competition between global powers like China, Europe and the United States.
Ramaphosa speaking on Thursday also said South Africa had reached agreement with China on aspects of its energy security, but did not provide details.
He said South Africa could learn from China on reforming its energy sector.
“They already have done exactly what we are seeking to do. So there are lessons for us to learn from China and how to do it,” he said.
South Africa has been battling disturbing power blackouts over the years, a development that has constrained economic growth.
Ramaphosa also said South Africa would look to attract China’s electric vehicle manufacturers including its largest, BYD.
“We had good exchanges with BYD, which has shown a great interest to come and invest in South Africa,” he said.
