China and South Africa in $6.5bn worth of deals

China will facilitate South Africa’s efforts to lead China-Africa cooperation on production capability and promote Africa’s industrialization, encourage more financing for South Africa, and support the early launch of the establishment of an African regional center for the New Development Bank for BRICS countries, Xi told Zuma.

The South African side gave Xi a grand welcoming ceremony on Wednesday, during which a 21-gun salute was sounded and the two presidents inspected the guard of honor in front of the imposing Union Buildings, which houses the offices of the presidency.

About 26 deals were signed on Wednesday, with $2.5bn going to South Africa’s state-owned rail operator.

“The Chinese president had informed President Buhari of the willingness of his country to finance the whole project through a special loan agreement”, said Shehu, although he did not disclose the proposed sum needed to fund the work. China’s Sinohydro Corp won the $1.5 billion bid to add two generation plants at Hwange in western Zimbabwe in October previous year, in the most ambitious move yet to tackle the country’s crippling electricity shortages.Liu noted that Sino-Africa trade has grown tremendously while partnership in key areas likes infrastructure development, industry, technology and people to people exchanges has flourished. But recent slowing demand from China has hurt trade in those African countries reliant on its exports.

Last year Chinese state news agency Xinhua reported that China Railway Construction Crop had signed a deal to build the railway, but the project has stalled since then.

Xi, who began his tour of Africa in Zimbabwe on Tuesday where he pledged loans to revamp the ailing economy, will also co-chair a two-day Forum on China-Africa Co-operation which begins in Johannesburg on Friday. The two new routes will not only promote the traditional friendship between China and Africa, meeting the ever increasing market demand for air travel, but also reflect Air China’s response to the Chinese government’s “One Belt, One Road” initiative.