Chinese President Xi Jinping has pledged to increase China’s financial support for Africa with a $51 billion commitment, which includes infrastructure funding and a promise to create 1 million jobs across the debt-distressed continent. The announcement was made at the Forum on China-Africa Cooperation Summit in Beijing, where delegates from over 50 African nations gathered.
During the summit, Xi promised 360 billion yuan ($50.7 billion) in financial aid, with 210 billion to be disbursed through credit lines, 70 billion in direct investment by Chinese companies, and smaller amounts allocated to military aid and various projects. Xi’s pledge to create 1 million jobs and expand infrastructure aligns with China’s long-standing involvement in Africa’s development, with a focus on deepening cooperation in industry, agriculture, trade, and investment.
Xi highlighted China’s readiness to initiate 30 clean energy projects across Africa and undertake 30 new infrastructure projects. These initiatives are aimed at tackling Africa’s power deficits, which have slowed industrialization. The projects will focus on nuclear technology and sustainable energy, marking a shift in China’s approach from large-scale endeavors to smaller, targeted projects that support green technologies.
Although Xi did not reiterate his earlier commitment to buy $300 billion worth of African goods, he expressed a willingness to expand market access for African products. However, analysts have pointed out that China’s stringent phytosanitary rules have made it difficult to fully meet these promises.
China also plans to assist in the development of the African Continental Free Trade Area and improve logistics and financial cooperation, aiming to boost trans-regional development.
Despite Xi’s significant financial pledges, the issue of debt was not explicitly addressed in his speech. As Africa’s largest bilateral lender, China has faced accusations of “debt diplomacy,” with critics arguing that its financial assistance leads to unsustainable debt levels. However, the summit’s Action Plan for 2024-2027 includes provisions for debt repayment postponements and calls for the establishment of an African rating agency to improve credit terms.
United Nations Secretary-General Antonio Guterres emphasized the need for better access to debt relief for African countries, warning that limited resources and inadequate debt relief could lead to social unrest. Guterres proposed reforms to the international financial system to address these concerns.
As China continues to expand its influence in Africa, the continent remains a crucial part of its global strategy. However, questions surrounding the long-term impact of China’s financial assistance and the potential for debt traps continue to loom large.
