China grants SA R670m for energy crisis

The Chinese government has donated R170m in emergency power equipment and made available an approximately R500m grant as development assistance to alleviate SA’s energy crisis.

This was revealed by President Cyril Ramaphosa during President Xi Jinping’s state visit to the Union Buildings in Pretoria on Tuesday.

“SA deeply appreciates China’s support in addressing our current energy challenges,” said Ramaphosa in his opening remarks. 

He added that Chinese companies, encouraged by their government, responded with enthusiasm to his investment drive, which has raised more than R1.5-trillion in commitments in the past five years.

Ramaphosa, who delivered his opening remarks ahead of the state visit in the cabinet room, was accompanied by senior ministers including Naledi Pandor, Khumbudzo Ntshavheni, Kgosientsho Ramokgopa, Enoch Godongwana, Pravin Gordhan, Thandi Modise and Bheki Cele.

Xi’s visit comes as SA and China celebrate 25 years of diplomatic relations. 

Ramaphosa said China’s support during the liberation struggle will never be forgotten.

“In many ways we achieved our struggle also because of the support we received from China, so for us the relationship between SA and China is very special.”

China has not only been a friend, but also a development partner to SA, said Ramaphosa. 

“The recent assistance and support that we have received from China, the support that we received during the trying period of Covid-19, was enormous. The provision of PPE that was much needed at the time, we got from China at the right time.” 

Ramaphosa also thanked Xi for providing vaccines and other essentials, and cancelling Africa’s debt during the pandemic. 

“This support extended to the cancellation of debt for a number of countries and this followed a telephone call I had with President Xi as we were discussing a number of challenges that African countries were having.”

Thereafter, Xi came forth with a number of packages and measures to assist African countries that had enormous debt. 

“This is something that we will never forget, that it was at a dangerous time, and [in need], we had a friend indeed.”

SA maintains high co-operation with China in politics, trade, infrastructure development, science and technology, innovation and education. 

“Energy co-operation is a recent development that we look to deepen, particularly in line with our respective commitments to low-carbon resilient development,” Ramaphosa said, adding that this year saw the resumption of in-person bilateral mechanisms. 

“At the moment, China is SA’s largest global trading partner.” In turn, SA is China’s biggest trading partner in Africa and an important destination for Chinese investment in Africa, with investment growing exponentially. 

Ramaphosa said SA would like to see the significant trade deficit narrowed, adding: “The development co-operation between our two countries is also strong.”

TimesLIVE