Xi pledges $51bn in new financing for African countries at Forum on China-Africa Cooperation
Chinese President Xi Jinping has pledged to create “at least” one million jobs in Africa as he seeks to position Beijing as the development partner of choice for the Global South.
Speaking at the Forum on China-Africa Cooperation on Thursday, Xi said China would provide African countries 360 billion yuan ($51bn) in new financing and support 30 infrastructure projects to boost connectivity across the continent.
Addressing delegates from more than 50 African nations gathered in Beijing for the forum, he said 210 billion yuan ($29.6bn) of the financing would be disbursed through credit lines and at least 70 billion yuan ($9.9bn) in new investment by Chinese companies, with smaller amounts provided through military aid and other projects.
The financial assistance would be in yuan, in an apparent bid to further internationalise the Chinese currency.
The Chinese leader also called for a China-Africa network of land and sea links and coordinated development.
“We have together built roads, railways, schools, hospitals, industrial parks and special economic zones. These projects have changed the lives and destiny of many people,” Xi told African leaders, according to state news agency Xinhua.
Xi said that the Chinese and African people working together could “accomplish new and even greater feats” and spearhead the “modernisation” of the Global South.
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 2025-27, according to Xinhua.
China is seeking to expand its influence in Africa amid a growing economic and diplomatic divergence with Western countries, including the United States.
Beijing’s outreach also comes as the world’s second-largest economy is slowing down amid challenges that include a prolonged property crisis and a declining population.
China is Africa’s biggest trade partner, with nearly one-quarter of the continent’s exports – mainly minerals, fuels and metals – going to the Asian superpower.
Beijing is also the continent’s biggest lender, pledging $191bn to African countries between 2006 and 2021.
At the 2021 China-Africa summit in Dakar, China promised at least $10bn in investment and the same again in credit lines.
In the run-up to the three-day summit, African leaders announced numerous deals related to cooperation on infrastructure, agriculture, mining and energy.
Among other agreements, Kenya’s President William Ruto announced plans to cooperate on the expansion of the railway between capital Nairobi and Mombasa and a highway in the west of the East African country.
‘Historic injustices’
Xi did not mention debt in his speech, despite China being many African states’ biggest bilateral lender but the Action Plan included terms for repayment postponements and called for the establishment of an African rating agency.
In attendance at the summit, United Nations Secretary-General Antonio Guterres said that African countries’ inadequate access to debt relief and scarce resources was a recipe for social unrest.
It was time, he said, to correct “historic injustices” against the continent, stating that it was “outrageous” that the continent had no permanent seat on the UN Security Council.
He added that “China’s remarkable record of development, including on eradicating poverty, provides a wealth of experience and expertise”.
On Thursday, Xi said China was ready to tackle power deficits that have delayed the Africa’s efforts to industrialise, launching 30 clean energy projects and offering to cooperate on nuclear technology.
