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Sputnik News: China’s Loans Saved Two South African Companies

On its Chinese Edition site, well-known Russian news agency Sputnik recently reported that the large amount of aid loans China provided South Africa during President Xi Jinping’s visit to that country will probably save two large South African state-owned companies, Eskom and Transnet. The South African newspaper City Press also reported that these two large companies will have significant relief from financial pain and will get their health back. In July, Eskom, as the national energy resource provider, just declared a financial loss of US$174 million and it will receive a US$2.5 billion loan from China Development Bank. Transnet, a major transportation company, will receive a large loan from the Industrial and Commercial Bank of China as well. According to South Africa President Cyril Ramaphosa, President Xi thinks China has significant special interests in Africa, especially in South Africa. President Xi will continue to provide aid to the region. Ramaphosa has been trying to save Eskom for many years. The company was deeply involved in political scandals during the time of the previous administration. Banks later stopped providing loans to Eskom.

Source: Sputnik Chinese Edition, July 26, 2018