News in brief:
– Chinese President Xi Jinping pledged $51 billion to finance African countries during the FOCAC summit.
– The funding would be used for infrastructure projects, agricultural development, and job creation.
During the Forum on China-Africa Cooperation (FOCAC), Chinese President Xi Jinping promised to finance African countries with $51 billion. He mentioned that this would come with support for 30 infrastructure projects to boost connectivity and create a minimum of one million jobs.
Jinping revealed that the funding would be split between credit lines ($30 billion) and investments through Chinese companies ($21 billion). Some other financing would be made in military aid and more.
Additionally, a news report mentioned that the financing would be made available in yuan as a means of making the Chinese currency more acceptable on the international scene.
Another report claimed that China would provide Africa with $141 million in emergency food assistance and build about 6,670 hectares of standardized agriculture demonstration areas. It would also send 500 agricultural experts and establish a China-Africa agricultural science and technology innovation alliance.
The Chinese president recalled the success of collaborating with African countries. He spotlighted projects like railways, schools, hospitals, industrial parks, and special economic zones that have transformed lives.
The Asian country’s influence on Africa’s economy is enormous. Trade between China and Africa reached $282 billion in 2023, making it the largest trade partner since 2009. Most of the traded items between the economies include minerals, fuels, and metals.
As of 2022, Nigeria was the third-biggest beneficiary of the partnership, earning $23.9 billion, behind South Africa ($35.9 billion) and Angola ($27.3 billion).
In addition to trade partnership, China is also the biggest lender to Africa and has provided funding of up to $191 billion from 2006 to 2021.
Yet, Jinping’s speech did not include debt but revealed an Action Plan for repayment postponements. He also pitched the idea of an African rating agency.
According to Senegal President Bassirou Diomaye Faye, the forum would include commitments in favor of industrialization, agriculture, energy, and digital technology.
China also planned to build a platform for governance experience sharing, a China-Africa knowledge network for development, and 25 centers on China and Africa studies.
It was also looking at a zero-tariff treatment for 100 percent tariff lines which 33 African countries could benefit from as well as other least developed countries (LDCs) having diplomatic relations with it.
