China, South Africa ink deals, loans valued at $6.5 billion

PanARMENIAN.Net - China and South Africa have signed deals and loans valued at $6.5bn, with the focus on building infrastructure in the African giant, BBC News reports.

The deals were announced during a four-day visit by Chinese President Xi Jinping to increase trade and investment between the two countries.

About 26 deals were signed on Wednesday, December 2 with $2.5bn going to South Africa's state-owned rail operator.

China has given a series of loans to African countries for development.

The countries, in turn, provide oil and other key commodities to the world's second largest economy. But recent slowing demand from China has hurt trade in those African countries reliant on its exports.

Chinese investment in Africa plunged 40% in the first half of the year, according to China's Ministry of Commerce.

President Xi's visit has been viewed as a move to reassure African nations that China's slowing growth would not limit its investment in the continent.