(Beijing) Chinese President Xi Jinping on Thursday pledged more than 68 billion Canadian dollars in funding over three years to African countries, some 50 of whose leaders are in Beijing for a summit.
This sum aims to strengthen collaboration in infrastructure and trade between the Asian giant, the world’s second largest economy, and Africa.
The largest diplomatic gathering held in Beijing since the COVID-19 pandemic, the Forum on China-Africa Cooperation summit is bringing 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.
Xi Jinping, Chinese President
“In the next three years, the Chinese government wants to provide financial support of 360 billion yuan” ($68.5 billion), half of which will be in the form of credits, he announced, promising to help “create at least one million jobs in Africa.”
In addition, Beijing will provide $190 million in military grants and “train 6,000 military personnel and 1,000 police and law enforcement officers 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.”
PHOTO GREG BAKER, ASSOCIATED PRESS
UN Secretary-General Antonio Guterres
“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 $226.7 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 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 were close to 40 billion dollars.
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 this southern 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.
PHOTO ZHAI JIANLAN, ASSOCIATED PRESS
Tanzanian President Samia Suluhu Hassan, Chinese President Xi Jinping and Zambian President Hakainde Hichilema applaud during the signing of a Memorandum of Understanding (MoU) on the Tanzania-Zambia Railway Authority Revitalization Project.
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 said that Xi Jinping had promised to open the Chinese market to his country’s agricultural products.
PHOTO FLORENCE LO, REUTERS
Chinese President Xi Jinping and Kenyan President William Ruto
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, which is expected to cost $1.6 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 $10.8 billion.