Chinese President Xi Jinping pledged on Thursday to increase China’s support for the world’s fastest-growing continent with about $51 billion in financing over the next three years, back more infrastructure initiatives and vow to create at least 1 million jobs.
Beijing has shown a willingness to move away from financing major infrastructure projects and focus on selling advanced, green technology to developing countries. Chinese companies are investing heavily in this technology.
China, the world’s second-largest economy, will implement 30 key infrastructure projects across the resource-rich continent and provide financial assistance worth 360 billion yuan ($50.70 billion), Xi said in a speech at a summit of the Forum on China-Africa Cooperation for delegates from more than 50 African countries.
He added that Beijing “is ready to enhance cooperation with Africa in the fields of industry, agriculture, infrastructure, trade and investment.”
He called for a “China-Africa network that includes land and sea links and coordinated development”, and asked Chinese companies to return to the continent after the lifting of Covid-19 restrictions that disrupted their plans.
Last year, China approved $4.61 billion in loans to Africa, the first annual increase since 2016.
Xi said the financing pledge includes 210 billion yuan ($29.6 billion) to be disbursed through credit lines, at least 70 billion yuan ($10 billion) in new investment by Chinese companies and smaller amounts for military aid and other projects.
The summit, to be held in Beijing this year, will set a three-year agenda for relations between China and all African countries except Eswatini, which has relations with Taiwan.
In addition to 30 infrastructure-related projects, Xi said “China is willing to launch 30 clean energy projects in Africa,” and proposed cooperation on nuclear technology and addressing the electricity deficit that has long hampered Africa’s broader industrialization goals.
“We are ready to help develop the African Continental Free Trade Area and enhance logistical and financial cooperation to benefit development across various regions in Africa,” he said.
Revolution in renewable energy
For his part, UN Secretary-General Antonio Guterres stressed at the opening of the forum that China and Africa, if they cooperate together, can lead a “renewable energy revolution.”
“China’s impressive record in development, especially in poverty eradication, is a great source of experience and expertise,” Guterres said.
China is Africa’s largest trading partner and is seeking to tap the continent’s vast natural resource wealth, including copper, gold, lithium and rare earth minerals.
Chinese projects in Africa
The following are the most prominent Chinese projects in Africa:
- After meeting Xi on Wednesday, Zambian President Hakainde Hichilema said he had overseen a deal between state power company Zesco and Beijing-based Power China Group to expand the use of rooftop solar panels in his country.
- Nigeria, one of the continent’s largest debtors to China, has signed a communique with Beijing in which they agreed to deepen cooperation in “infrastructure development, energy and mineral resources.”
- Tanzanian President Samia Suluhu Hassan has secured a commitment from China’s president to speed up construction of a railway line linking her country to neighbouring Zambia. According to Zambian media, Beijing has promised $1 billion for the project, which is vital in this resource-rich part of Africa.
- Zimbabwe also received promises from Beijing to deepen cooperation in “agriculture, mining, traditional and environmentally friendly energy and transportation infrastructure,” according to a joint statement from the two countries.
The statement indicated that Harare and Beijing also agreed to sign an agreement allowing the export of avocados produced in Zimbabwe to China. - Kenyan President William Ruto said Xi promised to open China’s markets to his country’s agricultural products.
- China and Kenya have agreed to expand the railway line linking the capital Nairobi to the port of Mombasa, financed in particular by the Export-Import Bank of China (EXIM).
- Ruto also secured a pledge of more cooperation with China on a highway that Kenyan media said was expected to cost $1.2 billion.
- Last year, Ruto asked China for a $1 billion loan and to restructure existing debt to complete other stalled construction projects. The country owes China more than $8 billion.
