China: Xi promises African countries $50 billion over three years

Chinese President Xi Jinping on Thursday pledged more than $50 billion in funding over three years to African countries, including some 50 leaders in Beijing for a summit.

This sum, equivalent to around €45 billion, aims to strengthen collaboration in infrastructure and trade between the Asian giant, the world's second-largest economy, and Africa.

The largest diplomatic meeting held in Beijing since the Covid-19 pandemic, the summit of the Forum on China-Africa Cooperation brings together more than 50 African leaders from Wednesday to Friday, according to Chinese state media.

China-Africa relations are at their “best time in history,” Xi Jinping said at the opening ceremony in the Great Hall of the People, a colossal building on the edge of the famous Tiananmen Square.

“China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment,” he added.

“In the next three years, the Chinese government wants to provide financial support of 360 billion yuan” ($50.7 billion), half of which will be in the form of credits, he announced, promising to help “create at least one million jobs in Africa.”

Beijing will also provide $141 million in military and will provide “training for 6,000 military personnel and 1,000 police and law enforcement officers in Africa.”

Also speaking at the summit, UN Secretary-General Antonio Guterres said China and Africa, working together, could “lead the renewable energy revolution.”

“China's remarkable development record, particularly in eradicating poverty, is a great source of experience and expertise,” he said.

– More cooperation –

Chinese President Xi Jinping (C) delivers a speech at the Forum on China-Africa Cooperation summit in Beijing on September 5, 2024 © AFP – GREG BAKER

China is already Africa's largest trading partner, with $167.8 billion (€151.8 billion) in bilateral trade in the first half of 2024, according to Chinese state media.

It has sent hundreds of thousands of workers and engineers to Africa over the past two decades and gained privileged access to Africa's vast natural resources, including copper, gold and lithium.

Loans from Chinese public banks have helped finance many infrastructures designed to boost African growth (railways, ports, roads, etc.). But they have raised questions by contributing to increasing the debt of certain countries.

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Chinese President Xi Jinping (C) receives applause before delivering his speech at the Forum on China-Africa Cooperation summit in Beijing on September 5, 2024 © AFP – GREG BAKER

The amount of loans granted by China to African countries last year was nevertheless divided by six compared to the peaks reached in 2016, when they were close to 30 billion dollars (27 billion euros).

According to analysts, the current economic slowdown in China is pushing Beijing to reduce its investments in Africa, despite the growing competition with the United States on this continent, in terms of political influence and access to natural resources.

On the sidelines of the summit, the Chinese president held one-on-one talks in recent days with a dozen leaders Africans, promising more cooperation in a range of projects.

– Trains and roads –

Loans granted by China in Africa © AFP – John SAEKI

On Wednesday, Zambian President Hakainde Hichilema announced an agreement between the Zambian national electricity company (ZESCO) and the Chinese group PowerChina to expand the use of rooftop solar panels in the southern African country.

Nigeria – one of the African countries that has borrowed the most from China – and China have announced plans to “strengthen cooperation” in infrastructure, including “transport, ports and free trade zones”.

Tanzanian President Samia Suluhu Hassan obtained a commitment from Xi Jinping to advance the train project between her country and Zambia, which has been delayed.

According to Zambian media, Beijing has pledged $1 billion for the project, which is crucial in this part of the African continent rich in natural resources.

As for Zimbabwe, it obtained the promise of reinforced cooperation in “agriculture, mining, clean energy and transport infrastructure”, according to a joint statement.

Kenyan President William Ruto also said that Xi Jinping had promised to open the Chinese market to his country's agricultural products.

Chinese President Xi Jinping (C) delivers a speech at the Forum on China-Africa Cooperation summit in Beijing on September 5, 2024 © AFP – GREG BAKER

The two sides also agreed on the expansion of the Standard Gauge Railway (SGR) line, linking the capital Nairobi to the port of Mombasa, financed in particular by the Export-Import Bank of China (Exim bank).

China has also committed to greater cooperation on the Rironi-Mau Summit-Malaba highway, which is expected to cost $1.2 billion according to Kenyan media.

Last year, William Ruto asked China for a billion-dollar loan and the restructuring of existing debt: his country now has to repay more than $8 billion to China.

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