South African President Cyril Ramaphosa has rejected the notion that Chinese investments in Africa are leading the continent into a "debt trap."
Speaking on Thursday during the sidelines of the China-Africa summit in Beijing, Ramaphosa affirmed that China’s financial support is part of a mutually beneficial relationship rather than an exploitative strategy.
"I don’t necessarily buy the notion that when China [invests], it is with the intention of ensuring those countries end up in a debt trap or crisis," Ramaphosa was quoted as saying.
His comments came after China pledged $51 billion in new funding for African nations over the next three years, alongside commitments to triple the number of infrastructure projects across the continent.
Ramaphosa’s statement was a direct response to criticisms from some quarters that Chinese financing of large infrastructure projects in Africa might place undue debt burdens on African nations. However, the South African president maintained that the partnership with China has proven to be beneficial for Africa, enabling much-needed infrastructure development and economic growth.
“I don’t subscribe and believe the relationship is oppressive, that it is neocolonial. It should be seen as a mutually beneficial relationship that is based on recognition, respect and advancing each county’s own development,” Ramaphosa stated.
However, he also called for a more balanced trade relationship between South Africa and China, noting that the current trade favors the Asian giant, according to local media.