China’s Xi Pledges $50 Billion for Africa Over the Next Three Years

President Xi Jinping of China has committed $50 billion in funding for Africa over the next three years, aimed at boosting development projects and strengthening bilateral ties.

Addressing Beijing’s largest summit since the pandemic on Thursday, Chinese leader Xi Jinping vowed to provide more than $50 billion in funding for Africa over the next three years. He expressed his commitment to enhance collaboration with the continent by investing in infrastructure and trade.

State media reports that over 50 African leaders and UN Secretary General Antonio Guterres are present at the China-Africa forum being held this week.

This week, African leaders have already obtained numerous agreements to strengthen collaboration in the areas of infrastructure, agriculture, mining, trade and energy.

On Thursday, during the opening ceremony of the forum held in Beijing’s magnificent Great Hall of the People, Xi expressed his appreciation for relations with Africa and noted that they are currently experiencing their most prosperous era yet.

He stated that China is prepared to intensify collaboration with African nations in sectors such as industry, agriculture, infrastructure, trade and investment.

Xi stated that the Chinese government is committed to offering financial assistance totaling 360 billion yuan ($50.7 billion) during the upcoming three years.

He said that more than 50% of the total amount would be in credit, consisting of $11 billion provided as “assistance” and another $10 billion through incentivizing Chinese companies to invest.

He made a commitment to support the establishment of at least one million job opportunities for Africa.

In addition, the Chinese leader promised $141 million in grants for military support to the continent.

Xi announced that Beijing will offer training to 6,000 military personnel and 1,000 police as well as law enforcement officers from Africa.

The UN chief, Guterres, spoke at the meeting and pointed out to African leaders that the increasing links between China and Africa could be a significant force behind fostering renewable energy.

He stated that China’s impressive progress in various spheres, including poverty eradication, has resulted in a valuable reserve of knowledge and skills.

Promises and commitments

Africa’s principal trading partner is China, which ranks as the world’s second-largest economy. As such, it has actively endeavored to explore Africa’s abundant reserves of precious natural resources like rare earth minerals, lithium, gold and copper.

African nations have received billions of loans from it, which has been utilized to construct necessary infrastructure. However, they also faced controversy when the governments were burdened with substantial debts due to such lending activities.

According to analysts, Beijing’s generosity towards Africa is being adjusted due to economic difficulties within China. Additionally, policy decisions may increasingly be influenced by geopolitical tensions arising from a growing rivalry with the United States.

However, numerous commitments towards improved collaborations in various projects including railway systems, solar panels and avocados surfaced through bilateral meetings conducted during the summit.

After Wednesday’s meetings, Zambia’s President Hakainde Hichilema announced that he had facilitated an agreement between the state-owned power company ZESCO and Beijing-based PowerChina to broaden the implementation of rooftop solar panels in his nation.

China and Nigeria, with the latter being one of Beijing’s major debtors in Africa, have signed a joint statement to enhance their cooperation in infrastructure development. The agreement encompasses several areas such as transportation, ports and free trade zones.

The enhancement of transportation connections.

President Samia Suluhu Hassan of Tanzania, in exchange, secured a promise from Xi to drive fresh developments on an impeded railway linking her nation with neighboring Zambia.

The project, which according to Zambian media has been promised a fund of $1 billion by Beijing, aims to enhance transportation infrastructure in the eastern region of Africa known for its abundant natural resources.

According to a joint statement by both nations, Zimbabwe secured pledges of enhanced collaboration with Beijing in fields such as agriculture, mining, ecologically sustainable traditional and novel energy sources, along with transportation infrastructure.

According to the joint statement, Zimbabwe and Beijing have reached an agreement to permit the exportation of fresh avocados from Zimbabwe into China.

William Ruto, the Kenyan leader announced that Xi had pledged to facilitate access of agricultural products from his country into China’s market.

Agreement was reached by both parties to collaborate on the expansion of the Standard Gauge Railway in Kenya, which was financed by Exim Bank of China. The railway links Nairobi with Mombasa, a major port city.

Ruto managed to obtain a promise for increased collaboration with China concerning the Rironi-Mau Summit-Malaba expressway, which has been estimated by Kenyan media outlets as costing $1.2 billion.

Last year, Ruto appealed to China for a $1 billion loan and the reorganization of current debt in order to finalize other halted construction ventures. Presently, the country is indebted to China for an amount exceeding $8 billion.

AFP