The Brics Summit has kicked off with momentum in Johannesburg, with the announcement that the Industrial Development Corporation (IDC) and Bank of China (BOC) have signed a Memorandum of Understanding (MOU) to strengthen regional trade and investment.

As part of the MOU, the IDC and BOC are in the process of concluding a R10bn funding package over five years. This capital support will go into tangible projects spread across, energy, infrastructure, manufacturing, agriculture, and mining sectors, and highlights BOC’s resolution in partnering with South Africa in Sustainability, Just Energy Transformation and other funding initiatives.

The agreement’s key objectives are to explore opportunities for joint financing of potential future business ventures, with the Bank of China’s Johannesburg branch focusing on debt financing; and to identify and collaborate on various business sectors, including but not limited to mining, agriculture, telecommunications, and infrastructure development, particularly in China/Africa investment projects.

The agreement also aims to formalise and strengthen the relationship between the IDC and the Bank of China, particularly in supporting Chinese foreign direct investment (FDI) into South Africa.

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