China’s willingness to assist Africa demonstrated at the 15th BRICS Summit in South Africa.

By George Nsamba

Published: August 28,2023

Business advisory & Risk management practitioner based in Johannesburg

The 15th BRICS meeting has just concluded in Johannesburg South Africa with groundbreaking milestones achievements. Johannesburg’s richest square mile (Sandton), as it is famously known, has been a hive of activity with hundreds of dignitaries from far and wide and thousands of other interested parties attending this meeting. 

Covid 19 had hampered physical meetings of this nature, and this has been the first of such meetings since Covid 19 travel restrictions were lifted. The meeting started on 22 August 2023 and was concluded on 24 August 2023.

China’s willingness to assist Africa solve their pressing issues has again been demonstrated at this meeting where his Excellency Xi Jinping the President of the People’s Republic of China donated R167 million (US$8.8million) worth of equipment to assist South Africa’s struggle with its power problems referred to as loadshedding in south Africa and an extra R 500 million (US$26.3) grant meant for development assistance.

“A friend in need is a friend indeed” as the saying goes because South Africa has been struggling with the power crisis for the last 15years and China is the first country that has been able to directly assist where they problem is. 

Apart from the assistance and the grant, China’s Commerce Minister Wang Wentao, under the auspices of the Joint Economic and Trade Committee (JETC) has signed contracts worth R 41 billion (US$2.2 billion) with his South African counterpart for Chinese companies to purchase South African locally manufactured and agricultural products. 

Other agreements reached involve China’s commitment to help South Africa industrialise on a large scale starting with resolving the energy crisis. Some of the signatories that have signed the memorandum to assist South Africa end its energy crisis include the State Grid Corporation of China (the largest electric utility in the world), the China National Electric Engineering Company, the China General Nuclear Power Corporation, the China-Africa Development Fund to mention just a few.

South Africa’s trade with China reached a whooping R900billion (US$47.4 billion) in 2022 and Chinese investments in South Africa are estimated to be around R200 billion (10.5 billion) by the time of this BRICS meeting. South Africa is the smallest of the current BRICS members comprising of Brazil, Russia, India, China and South Africa. 

Other than South Africa, a number of other Africa countries were also represented and were able to strike a number of bilateral deals that will assist African development. Most of these deals again were with Chinese companies. 

Among the groundbreaking milestones reached was the expansion of BRICS membership where new members Egypt, Argentina, Ethiopia, UAE, Iran and Saudi Arabia will become members effective 1 January 2024 which is just three months from now. More interestingly discussions to end dollar dependence and plans on how different member countries will advance the implementation geared to end the dependency were also developed to an advanced level. 

China is always present where Africa needs it and that is what real friendship and partnership is. Long live the friendship between Africa and the People’s Republic of China.

George Nsamba is a Business advisory & Risk management practitioner based in Johannesburg