China and South Africa Banks Seal First Yuan Loan Under BRICS

China Development Bank and the Development Bank of Southern Africa have inked a landmark 2.1 billion yuan ($290 million) loan agreement, marking the first yuan-denominated financing collaboration between the two BRICS institutions. The deal signals a structural shift in bloc financing mechanisms.

Proceeds will fund African infrastructure, energy, telecommunications, water sanitation, and manufacturing projects. China's offshore yuan lending continues hitting record volumes, with this transaction further cementing Sino-South African economic ties through concrete financial channels rather than diplomatic rhetoric alone.

The arrangement carries strategic weight beyond its dollar equivalent. "This bridges South Africa's funding gap for critical infrastructure modernization while stimulating economic development," noted Song Wei of Beijing Foreign Studies University. The deal coincides with expanding use of yuan in BRICS trade settlements as de-dollarization efforts gain momentum.