- President Cyril Ramaphosa has secured a deal between the South African government and the Bank of China worth $1.1 billion (R15 billion)
- The deal will see the Chinese bank invest heavily in special economic zones in South Africa
- A special economic zone is due to be established in the Musina-Makhado corridor in Limpopo and will include a power plant and various heavy metal processing plants
President Cyril Ramaphosa has secured a deal between the South Africa government and the largest commercial bank in China, Bank of China, worth $1.1 billion (about R15 billion). The deal will see the bank invest heavily in establishing special economic zones in South Africa.
A special economic zone is due to be established in the Musina-Makhado corridor in Limpopo. The zone will include the construction of a coal power plant, a cement production plant and several stainless steel and chromium/manganese plants.
The deal to develop the Musina-Makhado corridor is worth an estimated $10 billion (R140 billion) according to Limpopo premier Stan Mathabatha. He noted that the deal was separate from the other deal signed by Ramaphosa and was signed by the Department of Trade and Industry (DTI) and the National Development and Reform Commission of the People's Republic of China (NDRC).
Briefly.co.za gathered that Mathabatha said the deal would benefit all the people of South Africa because it would introduce massive Chinese corporations to the South African market.
SowetanLive.co.za reported that Mathabatha said the Musina-Makhado special economic zone would employ around 21 000 people and would cover around 60km. He added that all of the companies who had committed to the deal were huge Chinese corporations.
The details of the deal between the government and the Bank of China is expected to be finalised in the coming days. The parties are in the final stages of finalising the deal and currently working on which projects will receive funding.
Ramaphosa is due to co-chair the China-Africa cooperation forum in Beijing which starts on Monday. The summit serves as a platform for the Chinese government to offer support, investment and loans to African countries.
On Sunday Ramaphosa said South Africa was recalibrating itself to become more attractive to foreign investors. Ramaphosa said this would be crucial in restarting the stalled South African economy.
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