By Laurie Chen
President Xi Jinping of China has made a historic pledge to boost Chinese support to Africa, the world's second fastest-growing continent. With a funding commitment of nearly $51 billion, China aims to back more infrastructure projects and create at least 1 million jobs in Africa.
As the world's biggest two-way lender, Beijing is shifting its focus from funding large-scale infrastructure projects to promoting advanced and green technologies to developing economies. This move aligns with Chinese firms' heavy investments in these sectors.
During a major China-Africa summit in Beijing, Xi announced plans for 30 infrastructure projects across Africa and offered 360 billion yuan ($50.70 billion) in financial assistance. He emphasized the importance of deepening cooperation with Africa in various sectors, including industry, agriculture, infrastructure, trade, and investment.
Xi also highlighted the need for a comprehensive China-Africa network that includes land-sea links and coordinated development. Chinese contractors are encouraged to resume their projects in Africa following the easing of COVID-19 restrictions.
China approved loans worth $4.61 billion to Africa last year, marking the first annual increase since 2016. Xi specified that 210 billion yuan of the financing pledge will be disbursed through credit lines, with an additional 70 billion yuan in fresh investments by Chinese companies.
The Forum on China-Africa Cooperation Summit outlined a three-year program for China and African nations, excluding Eswatini, which maintains ties with Taiwan. In addition to infrastructure projects, China plans to launch 30 clean energy projects in Africa, focusing on nuclear technology and addressing the region's power deficit.
While Xi did not reiterate his previous pledge to buy $300 billion worth of African goods, he promised to expand market access unilaterally. Analysts note that China's strict phytosanitary rules may hinder its ability to fulfill this commitment.
Xi expressed readiness to support the development of the African Continental Free Trade Area and enhance logistics and financial cooperation for trans-regional development in Africa.
Overall, China's increased support and investment in Africa are expected to boost economic growth, create job opportunities, and enhance infrastructure development on the continent. This partnership has the potential to benefit both Chinese companies and African nations, fostering mutual prosperity and development.
