China would invest $14.7 billion in South Africa President Cyril Ramaphosa said on Tuesday after talks between the two countries, news that sent the rand one percent firmer.
Speaking at the same event, Chinese President Xi Jinping said the worldโs second-biggest economy would take active measures to expand imports from South Africa to support development in Africaโs most industrialised economy.
Ramaphosa, who has promised to revive the economy since becoming president in February and after winning the leadership of the ruling African National Congress last year, said โXi has indicated that China is ready to invest and work with South Africa in various sectors.โ
The rand firmed after Ramaphosaโs announcement, spurred by offshore demand for the currency, traders said.
South Africaโs struggling state-run power firm Eskom, which swung to a full year loss on Monday, received a $2.5 billion loan from the China Development Bank.
Ramaphosa has focused on revitalising Eskom, Africaโs largest public utility, which was embroiled in corruption scandals under former president Jacob Zuma and narrowly avoided a liquidity crunch early this year after banks halted lending. Zuma has denied wrongdoing.
South Africaโs logistics utility Transnet also received a cash injection, as well as other sectors of the economy, officials said.
Xi said China and South Africa were important emerging economies with similar perspectives on many global issues.
โHence the need to strengthen cooperation,โ Xi said.
Speaking at the same event, Chinese President Xi Jinping said the worldโs second-biggest economy would take active measures to expand imports from South Africa to support development in Africaโs most industrialised economy.
Ramaphosa, who has promised to revive the economy since becoming president in February and after winning the leadership of the ruling African National Congress last year, said โXi has indicated that China is ready to invest and work with South Africa in various sectors.โ
The rand firmed after Ramaphosaโs announcement, spurred by offshore demand for the currency, traders said.
South Africaโs struggling state-run power firm Eskom, which swung to a full year loss on Monday, received a $2.5 billion loan from the China Development Bank.
Ramaphosa has focused on revitalising Eskom, Africaโs largest public utility, which was embroiled in corruption scandals under former president Jacob Zuma and narrowly avoided a liquidity crunch early this year after banks halted lending. Zuma has denied wrongdoing.
South Africaโs logistics utility Transnet also received a cash injection, as well as other sectors of the economy, officials said.
Xi said China and South Africa were important emerging economies with similar perspectives on many global issues.
โHence the need to strengthen cooperation,โ Xi said.
