CORRECTION: EFF clarifies China loan statement

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EDITORIAL NOTE: In an earlier version of this story, the SABC reported that the EFF had called for loans from China.  This was not an accurate account of the statement and  SABC apologises for the error.

The Economic Freedom Fighters (EFF)  has clarified its position that it seeks meaningful partnerships, not loans, to be created with countries such as China in order to improve South Africa’s infrastructure and accelerate development.

The party reiterated its call during Thursday’s debate in parliament on the International Monetary Fund and World Bank loans.

The World Bank has recently approvedR11.4 billion loan to South Africa.

The EFF has slammed the loan and called for its cancellation. It says loans from these international financial institutions often come with restrictive conditions which impose economic and political policy on countries.


In the video below, SA borrows over R11 billion from World Bank:

The National Treasury in January outlined its plans for the over R11.4 billion loan that the World Bank approved for South Africa.

The loan is intended to support government’s efforts to accelerate its COVID-19 response aimed at protecting the poor and vulnerable from the impact of the pandemic.

Director-General at the National Treasury, Dondo Mogajane said, “What we said we will do, because it is in dollars, we will just keep it as a buffer because we have to have some reserves during dry times to make sure that when we need it,from a cash management and flow point of view, at the right time we will convert it. But for now, we will keep it. We are not about to compromise the sovereignty of the state. We said that at the time we got the loan from the IMF, we are not going to do that.”

SA borrows over R11 billion from World Bank [ January 2022]