Grace Ashiru
President Xi Jinping announced a commitment to enhance China’s support for debt-stricken Africa, pledging nearly $51 billion in funding over the next three years, alongside support for additional infrastructure projects and the creation of at least 1 million jobs.
Speaking to delegates from over 50 African nations gathered in Beijing for the triannual Forum on China-Africa Cooperation Summit, Xi expressed China’s readiness to bolster cooperation in industry, agriculture, infrastructure, trade, and investment. “China and Africa account for one-third of the world population. Without our modernization, there will be no global modernization,” Xi stated.
As the world’s largest bilateral lender, China committed to executing three times as many infrastructure projects across resource-rich Africa, despite Xi’s expressed preference for “small and beautiful” initiatives centered around the sale of advanced and green technologies, where Chinese firms have heavily invested.
The Chinese leader announced a financial assistance package of 360 billion yuan ($50.70 billion) over three years, detailing that 210 billion would be allocated through credit lines, with at least 70 billion designated for new investments from Chinese companies. Smaller amounts will also be allocated for military aid and other projects.
During the 2021 China-Africa summit in Dakar, China committed at least $10 billion in investment and an equivalent amount in credit lines. This time, the financial aid will be in yuan, reflecting an apparent initiative to further internationalize the Chinese currency.
Following the opening ceremony, delegates endorsed the Beijing Declaration aimed at building “a shared future in the new era” and the Beijing Action Plan for 2025-2027, as reported by Chinese state media.
Xi urged the establishment of a China-Africa network of land and sea connections and coordinated development, encouraging Chinese contractors to return to the continent now that COVID-19 restrictions that hindered projects have been lifted.
Notably, Xi did not address the issue of debt during his speech, despite Beijing being the largest bilateral lender for many African nations. However, the Action Plan did include provisions for repayment postponements and the establishment of an African rating agency.
United Nations Secretary-General Antonio Guterres addressed the summit, highlighting that the inadequate access of African countries to debt relief and scarce resources could lead to social unrest.
The lending arrangements across Africa vary significantly; for instance, Gulf states like Saudi Arabia follow China in lending to nations such as Ethiopia, while countries like Kenya have multiple creditors, including European nations. Additionally, there are debts owed to multilateral organizations such as the World Bank and private bondholders.
SHARED FUTURE
The forum outlines a three-year program for China and all African countries, with the exception of Eswatini, which maintains its ties to Taiwan. In addition to 30 infrastructure connectivity projects, President Xi Jinping indicated that China is prepared to initiate 30 clean energy projects in Africa, offering cooperation on nuclear technology to address a power deficit that has hindered industrialization efforts.
However, he did not restate his commitment from the 2021 forum in Dakar, where he pledged that the Asian giant would purchase $300 billion worth of African goods, instead promising only to unilaterally enhance market access.
Analysts have pointed out that Beijing’s regulations regarding plant sanitary checks are excessively stringent, which has hindered China’s ability to fulfill that promise. Nonetheless, Africa seems poised to receive increased Chinese financing. Last year, China
approved loans amounting to $4.61 billion to Africa, marking the first annual increase since 2016.
“I’m here to see how best we can foster our relationship with China,” said Princess Dugba, Sierra Leone’s Minister of Fisheries and Marine Resources, during discussions on the sidelines of the summit. “China is providing us with a fish harbor, which is one of the first of its kind,” she added.
($1=7.0976 Chinese yuan renminbi)
