South Africa's Transnet secures $2.5bn guarantee from Chinese ECA

(The Citizen, Johanesburg, 3 December 2015) Transnet and China Export Credit Insurance Corporation (Sinosure) on Wednesday agreed to a $2,5 billion funding guarantee in a ceremony attended by South African President Jacob Zuma and his Chinese counterpart Xi Jinping, who is on a State visit to South Africa. The news came in a flurry of deal-making on the eve of the first Forum for China-Africa Co-operation (Focac) summit in Africa, being held in Johannesburg this week. South Africa and China announced a number of other deals worth a total US$6 billion on Wednesday.Transnet announced that it would use the guarantee to finance procurement of mechanical, electrical products and equipment from Chinese enterprises. It would also cover funding for operation, maintenance and other services from Chinese enterprises in South Africa. The credit terms are not intended to exceed 15 years, in line with Transnet’s stated objective of matching its liabilities with the life of assets.