By Charles Muchoki | Africa Guardian
Chinese President Xi Jinping pledged nearly $51 billion in financial support for Africa over the next three years, with plans to fund infrastructure projects and create at least one million jobs. Speaking at the Forum on China-Africa Cooperation (FOCAC) in Beijing, Xi outlined China’s readiness to enhance cooperation with Africa across various sectors, including industry, agriculture, infrastructure, trade, and investment.
Major Financial Commitments
Xi announced that China, the world’s largest bilateral lender, would provide 360 billion yuan (approximately $51 billion) in support to Africa over the next three years. This commitment includes 210 billion yuan in credit lines and at least 70 billion yuan in fresh investment by Chinese companies. Additional funds will be allocated through military aid and other specific projects. The financial assistance, to be provided in yuan, is also seen as an effort to further internationalize the Chinese currency.
Expanding Infrastructure and Technological Cooperation
During his speech, Xi highlighted China’s plans to triple the number of infrastructure projects across Africa, focusing on smaller and more sustainable initiatives, particularly those involving advanced and green technologies developed by Chinese firms. He also called for the development of a China-Africa network of land and sea links to facilitate coordinated growth and urged Chinese contractors to return to the continent following the lifting of COVID-19 restrictions.
Adoption of the Beijing Declaration and Action Plan
Following the opening ceremony, the summit delegates adopted the Beijing Declaration, emphasizing a “shared future in the new era,” and approved the Beijing Action Plan for 2025-2027. This plan includes terms for debt repayment postponements and proposes the establishment of an African rating agency. However, Xi did not specifically address debt in his speech, despite China’s status as the largest bilateral lender to many African countries.
Calls for Greater Market Access
While Xi reiterated China’s commitment to Africa, he did not repeat his 2021 pledge to purchase $300 billion worth of African goods. Instead, he vowed to unilaterally expand market access for African products, though stringent Chinese regulations on sanitary checks have been criticized for limiting trade. Analysts suggest that Africa may receive increased Chinese financing as an alternative. Last year, China approved $4.61 billion in loans to Africa, marking the first annual increase since 2016.
UN Secretary-General Addresses Debt Relief
United Nations Secretary-General Antonio Guterres, who also attended the summit, warned that the lack of adequate debt relief and limited financial resources for African countries could lead to social unrest. He called for more accessible debt relief mechanisms to ensure stability across the continent.
Broader Cooperation and Future Plans
China’s plans for the next three years include launching 30 new clean energy projects in Africa and exploring cooperation on nuclear technology to address the continent’s power deficits. These energy initiatives are part of a broader effort to help African nations industrialize and promote sustainable growth.
China remains committed to fostering stronger ties with Africa, with Xi’s latest pledges highlighting an intent to deepen the economic partnership and address the continent’s developmental challenges. As Sierra Leone’s Fisheries and Marine Resources Minister Princess Dugba stated, “I’m here to see how best we can foster our relationship with China. China is getting us a fish harbor, which is one of the first of its kind.”
These new commitments underscore China’s strategic interest in Africa and its vision for a shared future of development and modernization.
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