Transnet SOC, South Africa’s state-owned ports and rail operator, and China Development Bank have signed an agreement to jointly explore and identify opportunities for the Chinese state-owned bank to have a role in Transnet’s infrastructure upgrade programs.
As part of the deal, the bank also agreed to lend Transnet $5 billion to support South Africa’s infrastructure development, Bloomberg reports.
The cooperation includes, but is not limited to, the financing of the construction and upgrade of railway and port infrastructure, and localization of equipment manufacturing, especially rail and port. In addition, the two agreed on future collaboration on research and development initiatives, manufacturing, marketing and the construction of cross-border infrastructure throughout the continent.
The agreement is one of the various country-to-country partnership agreements intended to strengthen economic and trade relations among BRICS countries (Brazil, Russia, India, China and South Africa), Transnet said in a written statement.