After it was report that South Africa had fallen into a technical recession last week, South African President Cyril Ramaphosa, promise that he would provide a stimulus package to revive the South African economy.
Today it’s been announced China would provide South Africa with R375 Billion to finance the recession stimulus package, improving infrastructure and accelerating industrialization of the country.
Minister of International Relations and Co-operation, Lindiwe Sisulu told the media that if South Africa wasn’t in financial constraints they would have not taken financial aid from China. She also pointed that South Africa needed to elevate the economic pressure and China have made itself available with lessor priced interest rates.
Of the $60 Billion dollars China promised to Africa at the Forum on China–Africa Co-operation last week $15 Billion was reserved for South Africa. President Ramaphosa also acquired another $10 Billion.
Another reason for that Cyril Ramaphosa decides to get financial assistance from China, was because of the lack of a strong enough economic strategy by the economic cluster to boost the economy. Even though China has assisted in the stimulus, South Africa needs a total of R40 Billion to turnaround the economy.