The People’s Republic of China has pledged to support African nations with US$50 billion through credit, food aid, security, and infrastructure.
Through its President Xi Jinping, on Thursday, September 5, he pledged to step up China’s support across debt-laden Africa with funding of nearly $51 billion over three years, backing for more infrastructure projects, and the creation of at least 1 million jobs.
According to Reuters, Xi told delegates from more than 50 African nations gathered in Beijing for the three-yearly Forum on China-Africa Cooperation Summit that China was ready to step up cooperation with Africa in industry, agriculture, infrastructure, trade, and investment.
“China and Africa account for one-third of the world’s population. Without our modernization, there will be no global modernization,” Xi said.
China, noted as the world’s biggest bilateral lender, has promised to carry out three times as many infrastructure projects across resource-rich Africa despite Xi’s avowed new preference for “small and beautiful” schemes based around selling advanced and green technologies in which Chinese firms have invested heavily.
Presenting his keynote address, the Chinese leader vowed China’s commitment to implementing ten proposed partnership actions.
According to him, China will provide over US$50 billion of financial support to Africa over the next three years. Of this amount, about US$29 billion will be credited, while over US$11 billion will be for assistance in various forms.
He indicated that about US$10 billion will be aimed at investment in Africa by Chinese companies.
President Xi Jinping outlined the ten proposed areas: Partnership Action for Mutual Learning among Civilizations, Partnership Action for Trade Prosperity, Partnership Action for Industrial Chain Cooperation, Partnership Action for Connectivity, Partnership Action for Development Cooperation, and Partnership Action for Health. He also mentioned Partnership Action for Agriculture and Livelihoods, Partnership Action for People-to-People Exchanges, Partnership Action for Green Development, and Partnership Action for Common Security as trajectories for building intimacy between China and Africa.
The Chinese leader’s financial commitment of 360 billion yuan, equivalent to US$50.70 billion in financial assistance, will last for over three years but specified that 210 billion would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies.
In Reuters’ report, it is indicated that smaller amounts would be provided through military aid and other projects.
After the opening ceremony, delegates adopted the Beijing Declaration on building “a shared future in the new era” as well as the Beijing Action Plan for 2025-2027, according to Chinese state media.
Xi also called for a China-Africa network of land and sea links and coordinated development, urging Chinese contractors to return to the continent now that COVID-19 curbs that disrupted their projects had been lifted.
According to the President, this is also in alignment with three times more infrastructure projects than at the last summit.
Meanwhile, the UN also warned of social unrest over inadequate debt relief.
The summit has resulted in delegates passing an Action Plan for China-Africa ties until 2027. Part of the plan, however, calls for the establishment of an African ratings agency.
