South African President Cyril Ramaphosa expressed confidence on Thursday that Chinese investments in Africa do not place the continent in a “debt trap,” but rather foster a mutually advantageous relationship.
Speaking at the China-Africa summit in Beijing, where representatives from over 50 African nations convened, Ramaphosa addressed concerns raised about China’s substantial financial commitment to Africa. China announced a $51 billion funding pledge for the continent, alongside plans to significantly increase infrastructure development over the next three years.
Ramaphosa dismissed the idea that Chinese investments are designed to ensnare African nations in debt crises. “I do not subscribe to the view that China’s investments are intended to result in debt traps or financial crises for recipient countries,” he remarked.
Additionally, Ramaphosa highlighted that South Africa has reached an agreement with China regarding energy security. He noted that South Africa is keen to adopt best practices from China in transforming its energy sector, which has struggled with persistent power outages impacting economic growth.
Ramaphosa revealed that South Africa is aiming to attract Chinese electric vehicle manufacturers, particularly BYD, which has expressed significant interest in investing in the country.
