Chinese EV maker BYD and the South African government are currently in conversations over a possible investment by the Chinese electric vehicle manufacturer.
BYD has expressed interest in working and investing in South Africa but no specific time frame has been set for the next steps.
Zoom In
Earlier this week, South African President Cyril Ramaphosa paid a visit BYD’s Shenzhen headquarters, where he was personally greeted by founder and chairman Wang Chuanfu.
Zoom Out
BYD has entered several African markets, including Tunisia, Rwanda, Morocco, and South Africa, following a similar trend of other Chinese auto brands, including SAIC Motors and smaller upstart Xpeng.
Why This Matters
Chinese EV makers are facing geopolitical pressures as they push to sell their cars on international markets. The US has slapped 100% tariffs, effectively shutting them out, and the European Union introduced new measures on July 5 that raised duties on Chinese-made EVs to as high as 48%.
Both have cited Beijing’s financial backing for the industry and the overcapacity it has encouraged.
By The Numbers
On Thursday, Chinese leader Xi Jinping pledged $50 billion in financial support for Africa over the next three years, including $10 billion in investment by Chinese companies.
What They’re Saying
“Chinese companies in Africa should continue to localize their operations, create more local jobs, train more local talent, and further contribute to local people’s well-being,” said Li Qiang, the second in command to Chinese leader Xi Jinping.
Source: Bloomberg
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