Deputy President Kgalema Motlanthe has today told a small news conference that China has agreed to invest approximately R19 billion in investment projects around South Africa. He’s been on a three-day visit to China, and has avoided all mention of the constant South African headache that is deciding whether the Dalai Lama should get a visa or not.

Speaking to attendees of the news conference, Motlanthe clarified that nothing other than the financial side of things had really been agreed upon as yet:

This financial cooperation agreement is between development banks and the specific projects in which they are going to invest, they still have to identify these projects.

The two banks, the Development Bank of South Africa and China Development Bank, will work together to decide on strategic investment opportunities and the two countries have also signed a memorandum of understanding on “geology and mineral resources”.

Currently, South Africa exports about R43 billion a year in minerals to China and the new projects will be designed to “strike a healthy balance” in trade volume between the two countries.

The mining and mineral sectors have long been plagued by the problem of exporting too many of our resources for manufacturing overseas and this is something Motlanthe hopes the new deal will help rectify:

To that end, the difference is, instead of just exporting these minerals as raw materials, there will be … value add to create jobs on both sides.

Motlanthe has made it clear that his visit to China, which included a meeting with China’s Vice President Xi Jinping and one with President Hu Jintao tomorrow, is about strengthening economic ties between the two nations.

China repeatedly warns other countries not to receive the Dalai Lama and one hopes Desmond Tutu will still be given the opportunity to celebrate his 80th the way he wants to – with the Dalai Lama in attendance.

[Source: Fin24]