Chinese President Xi Jinping on Thursday promised more than $50 billion in funding over three years to African countries, some 50 of whose leaders are in Beijing for a summit. This sum, equivalent to around 45 billion euros, aims to strengthen infrastructure and trade between the Asian giant, the world’s second-largest economy, and Africa.
The summit of the Forum on China-Africa Cooperation, the largest diplomatic meeting held in Beijing since the Covid-19 pandemic, brings together more than 50 African leaders from Wednesday to Friday, according to Chinese state media.
China-Africa relations are enjoying their “best period in history,” Xi Jinping said at the opening ceremony in the Great Hall of the People, a colossal building on the edge of the famous Tiananmen Square.
“China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment,” he added.
“In the next three years, the Chinese government wants to provide financial support of 360 billion yua
n,” or $50.7 billion, he announced, also promising to help “create at least one million jobs in Africa.”
Also speaking at the summit, UN Secretary-General Antonio Guterres said that China and Africa, by working together, could “lead the renewable energy revolution.”
“China’s remarkable record in development, especially in poverty eradication, is a great source of experience and expertise,” he said.
– More cooperation –
China is already the African continent’s largest trading partner, with $167.8 billion (pound 151.8 billion) in bilateral trade in the first half of 2024, according to Chinese official media.
It has sent hundreds of thousands of workers and engineers to Africa over the past two decades to build these major projects, and gained privileged access to Africa’s vast natural resources, including copper, gold and lithium.
Loans from Chinese state-owned banks have helped finance many infrastructures designed to boost African growth (railways, ports, roads, etc.). But they have raised questions by
contributing to increasing the debt of certain countries.
However, the amount of loans granted by China to African countries last year was divided by six compared to the peaks reached in 2016, when they approached 30 billion dollars (27 billion euros).
Analysts say the current economic slowdown in China is pushing Beijing to reduce its investments in Africa, despite growing competition with the United States on the continent for political influence and access to natural resources.
On the sidelines of the summit, the Chinese president has held one-on-one talks with a dozen African leaders in recent days, promising more cooperation on a range of projects.
– Trains and roads –
On Wednesday, Zambian President Hakainde Hichilema announced an agreement between the Zambian national electricity company (ZESCO) and the Chinese group PowerChina to expand the use of solar panels on roofs in the African country.
Nigeria – one of the African countries that has borrowed the most from China – and China have announced
plans to “strengthen cooperation” in infrastructure, including “transport, ports and free trade zones.”
Tanzanian President Samia Suluhu Hassan has secured Xi Jinping’s commitment to move forward with a delayed train project between her country and Zambia.
According to Zambian media, Beijing has pledged $1 billion for the project, which is crucial in this part of the African continent rich in natural resources.
As for Zimbabwe, it was promised enhanced cooperation in “agriculture, mining, clean energy and transport infrastructure,” according to a joint statement.
Kenyan President William Ruto also indicated that his Chinese counterpart had promised to open the Chinese market to his country’s agricultural products.
The two parties also agreed on the expansion of the Standard Gauge Railway (SGR) line, linking the capital Nairobi to the port of Mombasa, financed in particular by the Export-Import Bank of China (Exim bank).
China has also pledged more cooperation on the Rironi-Mau Summit-Malaba highway, whi
ch is expected to cost $1.2 billion according to Kenyan media.
Last year, William Ruto asked China for a $1 billion loan and the restructuring of existing debt: his country now owes China more than $8 billion.
Source: Burkina Information Agency