By Joe Cash
BEIJING (Reuters) – South African President Cyril Ramaphosa said on Thursday he did not believe Chinese investment in Africa was leading the continent into a “debt trap” but was instead part of a mutually beneficial relationship.
Ramaphosa made the remarks on the sidelines of a China-Africa summit in Beijing, where delegates from more than 50 African nations gathered this week.
“I don’t necessarily buy the notion that when China (invests) it’s with the intention of ultimately getting these countries into a debt trap or into a debt crisis,” Ramaphosa said when asked by reporters about China’s pledge at the $51 billion summit in new financing for Africa.
In addition to the financial support over three years, China promised to implement three times as many infrastructure projects across resource-rich Africa, which in recent years has become the focus of intense geopolitical competition between global powers such as China, Europe and the United States.
Without giving details, Ramaphosa also said South Africa had reached an agreement with China on aspects of its energy security. He said South Africa can learn from China on reforming its energy sector.
“They have already done exactly what we want to do. So there are lessons for us to learn from China and how to do it,” he said.
South Africa has for several years been plagued by power outages that have limited economic growth.
Ramaphosa also said South Africa would seek to attract China’s electric vehicle manufacturers including its largest, BYD.
“We had good exchanges with BYD, who have shown great interest in coming and investing in South Africa,” he said.
(Reporting by Joe Cash; Writing by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning and Angus MacSwan)