According to the president of South Africa, China is not forcing Africa into a debt trap

President Cyril Ramaphosa of South Africa stated on Thursday that he did not think Chinese investments in Africa were forcing the continent into a “debt trap,” but rather that they were a mutually beneficial partnership.

Speaking on the sidelines of a China-Africa meeting this week in Beijing, where representatives from over 50 African countries convened, was Ramaphosa.

Pressed about China’s offer of $51 billion in fresh investment for Africa at the summit, Ramaphosa said, “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.”

Together with the three-year financial support, China also committed to completing three times as many infrastructure projects in resource-rich Africa, which has recently become the center of fierce geopolitical conflict between the US, Europe, and China.

Ramaphosa also indicated that South Africa and China had reached an understanding on certain areas of South Africa’s energy security, but he did not elaborate. He stated that South Africa may benefit from China’s energy sector reforms.

“They’ve already accomplished everything we’re trying to. Thus, China can teach us valuable lessons about how to accomplish things,” he stated.

Power blackouts that come and go every year have hindered economic growth in South Africa for many years.

Ramaphosa added that China’s electric car producers, chief among them BYD (002594.SZ), would be targeted by South Africa, opens new tab.

“We had good exchanges with BYD, which has shown a great interest to come and invest in South Africa,” according to him.