Gov't hunts P12bn deals in landmark China mission
Mbongeni Mguni | Friday August 31, 2018 18:00
The projects include the Mosetse – Kazungula Railway, Palapye – Martin’s Drift Road and Francistown – Nata – Maun – Sehithwa - Mohembo road. The three projects are at varying stages of study and include full construction of infrastructure, revamping or resealing.
President Mokgweetsi Masisi and five Cabinet ministers left Tuesday and Wednesday on the first official voyage to China by a sitting president since 2006.
Masisi and his ministers are due to spend 10 days in China during which they will participate in a state visit and the highly anticipated FOCAC, the central trade and development platform between China and Africa.
Ahead of FOCAC, BusinessWeek is informed that China had invited Botswana – like other African states – to make submissions for areas of possible funding and/or technical cooperation.
Annually, each FOCAC features a commitment by China of funds in the form of lending, grants, and others. The 2015 FOCAC saw China commit US$60 billion to Africa in aid, loans, industrialisation credit, export support and state-backed investment over a period of three years. This year’s FOCAC is expected to yield higher values, in line with the general trend over the years.
This week, in a response to written enquiries, Finance Ministry officials said the three projects submitted under FOCAC had a total estimated cost of P12.37 billion.
“Submissions under FOCAC means proposed projects submitted to the Chinese for consideration under the Forum on China Africa Cooperation (FOCAC) facility,” the Ministry said in its emailed response.
“We would like to confirm our continued bilateral cooperation with the Chinese government.”
According to the Finance ministry, Botswana will also sign an agreement for a P340 million economic and technical cooperation grant to assist the implementation of certain projects to be agreed upon between the two countries.
Responding to BusinessWeek enquiries, the Ministry also clarified that Botswana presently owes the Chinese government P262.8 million in outstanding loans as at August 28.
Last month, China pledged to invest US$14.7 billion in South Africa, during an official visit by the Oriental giant’s President, Xi Jinping.
During the visit, Chinese banks also signed agreements to lend that country’s struggling power utility, Eskom US$2.8 billion.
Masisi will be hoping to seal similar deals, as he meets with Jinping during the state visit running from August 31 to September 2. The new president is also scheduled to officiate at a Botswana-China Business Forum.
Thereafter, Masisi and his ministers will participate in the FOCAC between September 3 and 4, returning to Botswana on September 7.