President Cyril Ramaphosa says the multibillion-rand financial commitments made by China will not lead SA into a debt trap, assuring the business community of stability in the country’s future trajectory.
China is SA’s largest trading partner, importing mainly primary goods such as agricultural products and minerals. Both are members of Brics and their diplomatic relations focus on building stronger economic, cultural and political bonds.
However, critics of Chinese investment in Africa have raised concerns about debt-trapping, economic dependence and prioritisation of Chinese interests over local needs.
On Thursday, China committed 360-billion yuan ($50bn) in financial support over the next three years to the continent.
Addressing the media on Thursday, Ramaphosa said the investments by China into Africa — through its state-owned enterprises — would cause returns for all stakeholders. He said China was a partner that “seeks to foster development” in Africa.
“They have wanted to gauge ... whether the relationship between SA and China is going to be enhanced particularly in the seventh administration and in the era of the government of national unity, and we assured them,” he said.
“Their sighting of ministers ... in my delegation from other political parties was actually a real confidence booster. They want confidence. They want to see that we have stability, and they can have confidence in the future trajectory of the country.”
Ramaphosa said climate change and geopolitical rivalry fuelled by the worldwide competition for vital minerals was affecting Africa more severely than other regions.
He said given the implementation of the African Continental Free Trade Area, in which countries are pursuing cross-border trade, the Forum on China-Africa Co-operation could play an important role as Africa works to build an integrated network of linkages between countries, within regions and across the continent.
“If we are to realise a sustainable future for Africa and China — and indeed the entire world — we must acknowledge the reality of the interdependence among our community of nations.
“If we are to build a future that is people-centred, development-orientated and inclusive, we need to work in a spirit of co-operation and collaboration.”
Touting the Forum on China-Africa Co-operation as a valuable forum to support the implementation of the AU’s Agenda 2063, Ramaphosa said Xi’s partnership actions on modernisation would bolster and deepen African development and co-operation.
“We must work together to achieve the Africa we want. Amid these challenges, there is hope and opportunity.”
Xi, who announced a 10-point modernisation partnership between his country and the continent, urged China and Africa to upgrade their relationship.
“Thanks to nearly 70 years of tireless efforts from both sides, the China-Africa relationship is now at its best in history,” he said.
“With its future growth in mind, I propose that bilateral relations between China and all African countries having diplomatic ties with China be elevated to the level of strategic relations and that the overall characterisation of China-Africa relations be elevated to an all-weather China-Africa community with a shared future for the new era.”
Highlighting that China and Africa accounted for one-third of the world’s population, he asserted that without the modernisation of the two entities, “there will be no global modernisation”.
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