Chinese EV manufacturer BYD and the South African government are currently in discussions about a potential investment from the Chinese electric vehicle maker.
BYD has expressed interest in working and investing in South Africa, but no specific timeframe has been set for next steps.
Magnification
Earlier this week, South African Pres Cyril Ramaphosa visited BYD headquarters in Shenzhen, where he was personally welcomed by the founder and chairman Wang Chuanfu.
Zoom out
BYD has entered many African markets including Tunisia, Rwanda, Morocco, and South Africafollowing a similar trend of other Chinese car brands including SAIC Motors and the smaller new Xpeng.
Because this matters
Chinese EV makers are facing geopolitical pressures as they push to sell their cars in international markets. The US has dropped 100% tariffs.effectively excluding them, and the European Union introduced new measures on July 5 that raised tariffs on Chinese-made EVs to 48%.
Both cited Beijing’s economic support for the industry and the overcapacity it has encouraged.
By The Numbers
On Thursday, Chinese leader Xi Jinping promised financial support of 50 billion dollars for Africa over the next three years, inclusive $10 billion in investment by Chinese companies.
What They Say
“Chinese companies in Africa should continue to localize their operations, create more local jobs, train more talents and further contribute to the prosperity of local people“, he said Li Qiangthe second-in-command of Chinese leader Xi Jinping.
Source: Bloomberg
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