Chinese President Xi Jinping on Thursday 5 September pledged more than $50 billion (€45 billion) over three years to African countries, around fifty of whose leaders are in Beijing for the Forum on China-Africa Cooperation.
“China is willing to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment”said the Head of State during the opening ceremony of the summit, which is being held until Friday at the People’s Palace.
“In the next three years, the Chinese government wants to provide financial support worth 360 billion yuan”or $50.7 billion, he announced, also promising to help “Create at least one million jobs in Africa”. Also at the summit, UN Secretary-General Antonio Guterres said that China and Africa, through cooperation, can “Leading the renewable energy revolution”.
“China’s remarkable development record, particularly in poverty eradication, is a great source of experience and knowledge”estimated.
China is already the African continent’s largest trading partner, with $167.8 billion (€151.8 billion) in trade in the first half of 2024, according to official Chinese media. Over the past two decades, it has sent hundreds of thousands of workers and engineers there 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 a number of growth-enhancing infrastructure projects (railways, ports, roads, etc.), but have raised questions about the debt of some countries. However, the amount of loans granted by China to African countries in 2023 is six times lower than the highs reached in 2016, when they were close to $30 billion (€27 billion).
According to analysts, the current economic slowdown in China is pushing Beijing to reduce its investments in Africa, despite growing competition from the United States on the continent in terms of political influence and access to natural resources.
Trains and roads
On the sidelines of the summit, the Chinese president has met with a dozen African leaders in recent days, promising them greater cooperation on a range of projects.
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On Wednesday, Zambian President Hakainde Hichilema announced a deal between Zambia’s national power company (Zesco) and the PowerChina Group to expand the use of rooftop solar panels.
Nigeria – one of the African countries that has gone into the most debt – and China, for their part, have announced plans to “strengthening cooperation” in infrastructure, particularly “Transport, ports and free trade zones”.
Tanzanian President Samia Suluhu Hassan has secured a commitment from Xi Jinping to move forward with the delayed rail link project with Zambia. According to Zambian media, Beijing has pledged $1 billion for this crucial project in this resource-rich part of the African continent.
As for Zimbabwe, he obtained the promise of enhanced cooperation in “agriculture, mining, clean energy and transportation infrastructure”According to a joint press release, Kenyan President William Ruto also announced that his Chinese counterpart had promised to open the Chinese market to Kenyan agricultural products.
The two sides also agreed to extend 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 promised greater cooperation on the Rironi-Mau Summit-Malaba highway, which is expected to cost $1.2 billion, according to Kenyan media. Last year, William Ruto asked China for a $1 billion loan and restructuring of existing debt – his country now has to repay more than $8 billion to China.
