By South African President Cyril Ramaphosa rejected claims that Chinese investments are driving African nations into a “debt trap,” describing the relationship instead as mutually beneficial. Ramaphosa made these remarks on Thursday on the sidelines of a major China-Africa summit in Beijing, which brought together delegates from over 50 African countries.
“I don’t necessarily buy the notion that when China (invests), it is with an intention of, in the end, ensuring that those countries end up in a debt trap or in a debt crisis,” Ramaphosa stated when questioned about China’s new $51 billion funding pledge for Africa announced at the summit.
The summit saw China commit to this substantial financial support over a three-year period, along with a promise to triple its infrastructure projects across the resource-rich African continent. This increased engagement comes as Africa has become a focal point of intense geopolitical competition among global powers, including China, Europe, and the United States in recent years.
Ramaphosa’s comments seek to address concerns raised by some Western countries and international financial institutions about the sustainability of Chinese loans to African nations. Critics have argued that China’s lending practices could lead to unsustainable debt levels in some African countries, potentially giving Beijing undue influence over these nations.
The South African leader also revealed that his country had reached an agreement with China on aspects of energy security, though he did not provide specific details. Ramaphosa expressed interest in learning from China’s experience in reforming its energy sector, stating, “They already have done exactly what we are seeking to do. So there are lessons for us to learn from China and how to do it.”
This interest in Chinese expertise comes as South Africa grapples with persistent rolling power blackouts that have significantly hampered economic growth. The country’s state-owned power utility, Eskom, has struggled to meet electricity demand, leading to frequent load-shedding that has negatively impacted businesses and households alike.
In addition to energy cooperation, Ramaphosa indicated South Africa’s intention to attract Chinese electric vehicle manufacturers, including BYD, China’s largest electric vehicle producer. “We had good exchanges with BYD, which has shown a great interest to come and invest in South Africa,” he said. This potential investment aligns with South Africa’s efforts to modernize its automotive industry and reduce carbon emissions.
The summit and Ramaphosa’s comments highlight the growing economic ties between China and African nations. China has become Africa’s largest trading partner and a significant source of foreign direct investment in recent years. Beijing’s Belt and Road Initiative, a global infrastructure development strategy, has further deepened Chinese engagement across the continent.
While Ramaphosa’s statements reflect a positive view of China-Africa relations, the topic remains contentious in international discourse. As African nations continue to seek development financing and infrastructure investments, the debate over the long-term implications of Chinese involvement in Africa is likely to persist.
Reuters
