Chinese President Xi Jingping signs $6.5B worth deals with South Africa

China and South Africa has come up with a million worth mutual agreement to improve infrastructure in South Africa, benefiting both of the countries economically and financially.

According to Pulse.ng, President Jacob Zuma said in a statement on Wednesday that an agreement of 94 billion rands ($6.5 billion) was signed between two countries, South Africa and China.

Furthermore, he added that level of relationship between the two nations was at the peak and labeled it as their "best ever". However, the meeting with the Chinese President Xi Jinping mainly was focusing on upgrading the investment and trade between the two countries.

Through improving the infrastructural facilities in the African country, China will be benefited by gaining greater access to the country's valuable commodities, including oil, as mentioned by City A.M.

Around 26 deals were signed between two countries yesterday. However, one of the major single deals involving South Africa's national rail operator received about $2.5bn of the investment.

Additionally, China will also provide $500m to South Africa's state-owned power company to assist in boosting nuclear co-operation between the two nations. China also promised to fund a car manufacturing plant in South Africa.

The deals were made during a four-day trip made by China's President Xi Jingping to South Africa. There, the two nations held meetings to improve their trade and investment.

According to China's Ministry of Commerce, the first of the year came up with about 40% decline of Chinese investments in Africa, as mentioned by BBC. However, the act of President Xi Jingping visiting Africa reassured African nations that China's slowing growth would not halt their hands in investing in the continent.

In advance of Mr. Xi's visit to Africa, the deal of investing around $930m in metal, energy and pharmaceutical sectors was already announced by Chinese and South African firms.

Chinese President Xi's began his tour to Africa on Tuesday, starting from Zimbabwe. During the meeting, he promised to provide them with the loan to boost the struggling economy of the country.

Moreover, on Friday in Johannesburg, he will also co-chair a two-day China-Africa cooperation summit, where several heads of the continents' countries are expected to be present.

According to several reports, Nigeria's President Muhammadu Buhari is expected to ask Mr. Xi to fund their rail and power projects as the country's oil-exporting economy is suffering from continuous falling prices. However, the summit is also expected to result in gaining billions of dollars worth new loans for African nations.