South Africa’s Department of Public Enterprises (DPE) and China Development Bank (CDB) signed a Collaboration Framework Agreement to enhance their strategic cooperation and foster growth by exchanging expertise and sharing technical skills. The agreement was signed during the 15th BRICS Summit, reflecting the recent Official State visit of Chinese President Xi Jinping to South Africa.
Building the Foundation of Collaboration
The collaboration was established after Minister Pravin Gordhan and his team held discussions in Beijing with the CDB in May 2020. The agreement expands the scope of cooperation between CDB and South Africa beyond logistics and power utility to other sectors such as mining and forestry.
Empowering SOCs for Economic Opportunity
The Collaboration Framework Agreement aims to provide an enabling framework for ongoing reforms within South Africa’s State-Owned Companies (SOCs), which are vital for driving service delivery, economic opportunity, and improving the lives of the nation’s citizens. CDB’s Vice Chairman and President, Mr. Tan Jiong, highlighted the bank’s existing relationship with Transnet and Eskom and expressed confidence that this collaboration would position South Africa’s SOCs on a path towards future growth.
Strengthening Financial Prowess
The CDB is the world’s largest development finance institution, with over 18.2 trillion yuan (USD 2.5 trillion) in total assets at the end of 2022. Its financial prowess has made the bank a valuable partner for some of South Africa’s most critical infrastructure projects.
Funding Critical Infrastructure Projects
In recent years, the CDB has provided funding for various significant developments in South Africa, such as the construction of the Medupi and Kusile power stations and the purchase of locomotives by Transnet.
A New Chapter in the Relationship
The new Collaboration Framework Agreement between South Africa’s Department of Public Enterprises and China Development Bank signifies a new chapter in the relationship between the two nations. By working together, they are paving the way for mutual growth, development, and prosperity.
The agreement between South Africa’s DPE and CDB is strategically important for both countries as it will empower SOCs and enhance the growth, development, and prosperity of the nation’s citizens. By expanding cooperation to other sectors and continuing to fund critical infrastructure projects, the two nations are strengthening their ties and forging a mutually beneficial relationship.
