- Mar 6, 2004
https://mg.co.za/article/2018-09-14-00-china-gifts-sa-with-r370bnPresident Cyril Ramaphosa has secured nearly R370-billion in financing from the Chinese government towards an economic stimulus package.
The massive financial input is expected to largely fund government’s planned financial stimulus, speed up infrastructure development and rapidly increase the rate of South Africa’s industrialisation.
International Relations and Co-operation Minister Lindiwe Sisulu said government had initially been very cautious about accepting financial assistance from China but had come to the realisation there was “no way we can grow our economy on our own”.
Sisulu was part of the South African delegation at the Forum on China–Africa Co-operation last week. The minister said South Africa needed to access finance that would help it grow the economy faster and China, whose interest rates are not exorbitant, was available.
Of the $60-billion China pledged towards Africa to finance key development projects, $15-billion is earmarked for South Africa. Following Ramaphosa’s visit to Beijing, a further $10-billion has been secured.
As a response to the economic downturn, the economic cluster has been tasked with providing a concrete turnaround plan for the South African economy.
Government insiders told the Mail & Guardian Ramaphosa was unimpressed with the presentation made by ministers in the economic cluster this week as he was not convinced that the proposed measures would be able to resuscitate the economy.
Government leaders have been working on developing a model for the stimulus packages since Ramaphosa announced their planned rollout in August. A clear plan on how the packages will be structured is expected to be announced during the medium- term budget speech in October.