Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have continued to lend in tandem to African countries ahead of a major emerging markets summit in Johannesburg, South Africa, beginning on Wednesday.
Xi, arriving in South Africa on Tuesday, pledged $14.7 billion of investment to the country.
His South African counterpart Cyril Ramaphosa is attempting to reboot the country’s economy after years of mismanagement and stagnation under former President Jacob Zuma. Ramaphosa’s target is to raise $100 billion in foreign investment.
The South African rand rose 1 percent on the news of China’s commitment, according to Reuters.
$2.8 billion of China’s cash will be siphoned off into South Africa’s primary state utility Eskom. The struggling public firm reported a $171 million full-year loss on Monday.
Modi’s lending on behalf of India has been more modest, as the world’s fastest-growing major economy trails China’s ubiquity on the African continent.
During a flying visit to Uganda, Modi pledged $205 million to the East African country. The sum is intended to help Uganda develop its dominant agricultural sector and electricity distribution infrastructure.