BEIJING – South African President Cyril Ramaphosa dismissed concerns on Thursday that Chinese investments in Africa are leading the continent into a “debt trap,” asserting that the relationship between Africa and China is mutually beneficial. His comments came during the China-Africa summit in Beijing, where representatives from over 50 African nations gathered.
“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 told reporters, in response to China’s recent pledge of $51 billion in new funding for Africa.
China’s commitment includes three times more infrastructure projects across Africa, intensifying competition among global powers like China, Europe, and the United States for influence in the resource-rich continent.
Additionally, Ramaphosa revealed that South Africa and China have reached an agreement on energy security, adding that South Africa could learn from China’s energy sector reforms to help resolve its own energy crisis, marked by frequent power outages.
The South African president also indicated that the country aims to attract Chinese electric vehicle manufacturers, including the industry giant BYD, which has expressed interest in investing in South Africa.