Chinese President Xi Jinping committed more than $50 billion in financing for Africa over the next three years on Thursday, aiming to increase infrastructure and economic relations with the continent at Beijing’s largest conference since the Olympics.
According to official media, more than 50 African leaders, including UN Secretary General Antonio Guterres, will attend this week’s China-Africa Forum.
African leaders have already signed a number of agreements this week to increase collaboration in infrastructure, agriculture, mining, trade, and energy.
Addressing the leaders at the forum’s opening ceremony on Thursday in Beijing’s grandiose Great Hall of the People, Xi praised relations with the continent as being in their “best period in history”.
“China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment,” he said.
“Over the next three years, the Chinese government is willing to provide financial support amounting to 360 billion yuan ($50.7 billion),” Xi said.
Over half of that will be in credit, he said, with $11 billion “in various types of assistance” as well as $10 billion through encouraging Chinese firms to invest.
He also promised to help “create at least one million jobs for Africa”.
The Chinese leader pledged $141 million in grants for military assistance to the continent as well.
Beijing would “provide training for 6,000 military personnel and 1,000 police and law enforcement officers from Africa”, Xi said.
Also addressing the meeting, UN chief Guterres told African leaders that growing ties between China and the continent could “drive the renewable energy revolution”.
“China’s remarkable record of development — including on eradicating poverty -– provides a wealth of experience and expertise,” he said.
Deals and pledges
China, the world’s second-biggest economy, is Africa’s major trading partner and has attempted to exploit the continent’s huge natural riches, which include copper, gold, lithium, and rare earth minerals.
It has also provided billions of dollars in loans to African countries, which have helped create much-needed infrastructure but have also sparked controversy by burdening governments with massive debts.
According to analysts, Beijing’s generosity toward Africa is being rebalanced in the face of domestic economic difficulties, and geopolitical concerns over a developing schism with the United States may increasingly be dictating policy.
However, bilateral meetings held on the margins of the summit resulted in a plethora of commitments for increased cooperation on projects ranging from railways to solar panels to avocados.
Following discussions on Wednesday, Zambian President Hakainde Hichilema announced that he had overseen a deal between the country’s state-owned electricity firm, ZESCO, and Beijing’s PowerChina to increase the use of rooftop solar panels.
Nigeria, one of Beijing’s largest debtors on the continent, and China signed a joint statement committing to “deepen cooperation” in infrastructure, including “transportation, ports, and free trade zones”.
Expanding transport links
Tanzanian President Samia Suluhu Hassan, in turn, received a vow from Xi to fight for new progress on a long-stalled railway connecting his country to Zambia.
According to Zambian media, Beijing has offered $1 billion for a project to improve transportation in the continent’s resource-rich east.
Zimbabwe also received assurances from Beijing to strengthen cooperation in “agriculture, mining, environmentally friendly traditional and new energy (and) transportation infrastructure,” according to a joint statement by the two countries.
According to the joint statement, Zimbabwe and Beijing have also agreed to strike a contract that will allow fresh Zimbabwean avocados to be exported to China.
And Kenyan President William Ruto stated that Xi had promised to expand China’s markets to agricultural exports from his country.
The two sides agreed to collaborate on the expansion of Kenya’s Standard Gauge Railway, which connects the capital Nairobi to the port city of Mombasa and was funded by Exim Bank of China.
Ruto also got a guarantee for further cooperation with China on the Rironi-Mau Summit-Malaba road, which Kenyan media has reported will cost $1.2 billion.
Last year, Ruto requested a $1 billion loan from China as well as the restructuring of existing debt in order to complete other stalled development projects. The country currently owes China more than $8 billion.