On Thursday, Chinese President Xi Jinping made a significant announcement at Beijing’s most significant summit since the pandemic, pledging over $50 billion in financing for Africa over the next three years.
This move aims to enhance cooperation in infrastructure and trade with the continent, signaling a new era of partnership.
A Week of Major Deals
This week’s China-Africa forum has seen more than 50 African leaders, including South Africa’s Cyril Ramaphosa, and UN Secretary General Antonio Guterres, gathering in Beijing.
During the summit, African leaders have secured a range of deals focusing on infrastructure, agriculture, mining, trade, and energy.
Strengthening Ties
At the forum’s opening in the opulent Great Hall of the People, Xi praised the current state of China-Africa relations as the “best period in history.”
He emphasized China’s readiness to bolster cooperation across various sectors, including industry, agriculture, and trade.
Xi announced that the Chinese government would provide financial support totaling 360 billion yuan (approximately $50.7 billion) over the next three years.
This will include more than half in credit, with additional funds designated for assistance and encouraging Chinese firms to invest in Africa.
Xi also committed to creating at least one million jobs on the continent.
UN’s Perspective on China-Africa Relations
UN Secretary General Guterres highlighted the potential for China-Africa cooperation to drive the renewable energy revolution.
He noted China’s impressive development record and expertise in eradicating poverty as valuable assets for the continent.
Ongoing and New Projects
China, already Africa’s largest trading partner, is deeply involved in tapping the continent’s rich natural resources.
While this has involved substantial loans for infrastructure, it has also led to controversies over debt.
Recent bilateral meetings on the summit’s sidelines have resulted in several new pledges and deals.
For instance, Zambian President Hakainde Hichilema facilitated an agreement with Beijing’s PowerChina to expand rooftop solar panels in Zambia.
Nigeria and China have also agreed to enhance cooperation in infrastructure projects like transportation, ports, and free trade zones.
Expanding Transport and Trade
Tanzanian President Samia Suluhu Hassan secured a commitment from Xi to advance a long-delayed railway project connecting Tanzania with Zambia.
This project, reported to receive $1 billion in funding from China, aims to improve transport links in the resource-rich eastern part of Africa.
Zimbabwe gained promises for deeper cooperation in agriculture, mining, and transportation infrastructure.
Notably, Zimbabwe and China agreed to a deal allowing the export of fresh Zimbabwean avocados to China.
Kenya’s President William Ruto achieved several key agreements, including opening up China’s markets to Kenyan agricultural products and collaborating on expanding the Standard Gauge Railway, which connects Nairobi to Mombasa.
Additionally, a pledge was made for greater cooperation on the Rironi-Mau Summit-Malaba motorway, a project expected to cost around $1.2 billion.
Looking Ahead
As China continues to invest heavily in Africa, it remains to be seen how these new deals will impact the continent’s development and China’s strategic interests in the region.
The ongoing economic and geopolitical shifts will likely shape the future of this partnership.
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