China to invest $2.8 billion in South Africa's Northern Cape

China will be investing $2.8 billion in the Northern Cape, South Africa, after signing trade agreements between the Hunan Province and the Northern Cape as part of Friendship Week between the two regions.

The investment will be focused on developing the economy of the province and will be spent on machinery, transport, infrastructure and engineering, as well as an investment of $40 million in the Port Nolloth harbour.

Northern Cape Premier Sylvia Lucas said: “China remained our friend even during the difficult days of apartheid when the government of the day oppressed its non-white majority and denied them rights to live as humans in their land.”

“Today South Africa is the People’s Republic of China’s largest trading partner in Africa. Since 2009, under the leadership of our President Jacob Zuma, stern inroads have been made in strengthening the relations between the two countries.

“The outcome is manifested in bilateral trade which has soared to $60 billion by 2012 from $1.5 billion in the late 1990s. Our undertaking to consolidate our relations with the People’s Republic of China and the Hunan Province in particular is mainly influenced by our common agenda of advancing development in countries to eradicate poverty, unemployment and inequality.”

Lucas noted that the Northern Cape offered investment opportunities in agriculture, mining, manufacturing, tourism, infrastructure and fishing, as well as aquaculture and renewable energies.

She said: “With the newly-established University of Sol Plaatje and our urban and rural Technical, Vocational and Education Training Colleges, we are raising the skills base of especially our youth to respond effectively to the social needs of our community.”

“During the course of this engagement we will be signing Memorandums of Understanding with Hunan Province as a recommitment and dedication of our desire to work together in areas of co-operation, benefits and implementation strategies."