On Thursday, China’s President Xi Jinping committed to increasing Chinese support to the African continent, with funding amounting to approximately 51 billion dollars.
The funding has been pledged to infrastructure initiatives and the creation of at least one million jobs across the continent, Cape {town} Etc reports.
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Beijing, the world’s largest two-way lender, intends to divert focus to selling advanced and green technology to developing economies, as this is technology in which Chinese firms have already heavily invested.
In doing so, their funding of big-ticket infrastructure will lessen.
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In addition, President Jinping informed delegates from over 50 African countries that China intends to complete 30 infrastructure projects across the continent while offering 360 billion yuan (approximately $51 billion) in financial aid.
This indicates that China is willing to improve and deepen their relations with African countries in various industries such as agriculture, infrastructure, trade and investment. The president confirmed this at a major China-Africa summit in Beijing.
Jinping further called for ‘a China-Africa network featuring land-sea links and coordinated development.’ Chinese contractors were instructed to return to the African continent, following the disruptions caused by Covid-19 restrictions.
In 2023, China sanctioned loans worth $4.61 billion to Africa, marking the first annual increase since 2016.
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Jinping confirmed that 210 billion yuan of the total pledge would be expended through credit lines, a minimum of 70 billion would be allocated towards fresh investment by Chinese companies and smaller amounts would be provided as it pertains to military aid and various other projects.
The FOCAC (Forum on China-Africa Cooperation Summit), which was held in Beijing, outlined a three-year programme for China and every African state bar Eswatini, which maintains close links to Taiwan.
In the summit, it was further mandated that China was willing to launch 30 clean energy projects across the African continent with further promises of cooperation on nuclear technology and overcoming power deficits which uproot attempts at improving industrialisation.
The president did not repeat the 2021 forum promise of buying $300 billion worth of African goods. He did, however, pledge to unilaterally expand access to the market.
According to News24, Beijing’s phytosanitary rules regarding market access are too strict, which in turn makes China unable to keep the initial promise.
In conclusion, President Xi Jinping stated that China was ready to assist in the development of the African Continental Free Trade Area and deepen logistics and financial cooperation for the benefit of trans-regional development in Africa.
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Picture: Pool / Gallo Images