Chinese President, Xi Jinping, announced on Thursday that China will provide 360 billion yuan, over $50 billion, in financial support to Africa over the next three years.
This statement was made on the second day of the ninth Forum on China-Africa Cooperation Summit, which is anticipated to introduce new policies and agreements shaping China-Africa relations for the coming years.
Xi stated, “The China-Africa relationship is now at its best in history,” emphasizing China’s readiness to enhance cooperation with Africa across various sectors including industry, agriculture, infrastructure, trade, and investment.
He urged both sides to advance modernization in an “open and win-win” manner.
The high-profile summit is part of China’s effort to realign its economic relations and trade agreements with Africa while strengthening ties with developing economies amid ongoing geopolitical tensions with the West.
Over 50 African leaders attended the summit in Beijing, with notable figures such as South Africa’s President Cyril Ramaphosa and Kenya’s President William Ruto engaging in one-on-one discussions with Xi prior to the summit, as reported by Chinese state media.
“China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,” Xi told delegates at a major China-Africa summit in Beijing.
“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.
The summit is expected to culminate in new trade and investment deals, along with a three-year action plan. Historically, the summit has seen China making substantial financial commitments for large-scale infrastructure projects across Africa.
Delegates are also anticipated to negotiate loan terms to address rising debt issues in their respective countries.
Additionally, the summit aims to promote the sale of green technology products, such as electric vehicles and solar panels, to Africa.
This is a strategic move to circumvent high export tariffs imposed by Western countries.
Chinese Vice Foreign Minister Chen Xiaodong described the summit as the largest diplomatic event hosted by China in recent years.
However, Xi faces challenges as China fell short of its previous pledge to purchase $300 billion worth of African goods during the last Forum on China-Africa Cooperation Summit in 2021.
Since surpassing the U.S. in 2009, China has become Africa’s largest trading partner, with total trade volume soaring from less than 100 billion yuan in 2000 to 1.98 trillion yuan in 2023, marking an annual growth rate of 17.2%, according to data from China Customs.
In the first seven months of this year, trade between China and Africa reached a record 1.19 trillion yuan.
China is also the largest creditor to numerous African countries, having invested over $180 billion in infrastructure projects such as bridges, railways, and hydropower plants from 2000 to 2023.
In 2023 alone, Chinese lenders extended loans totaling $4.61 billion, the highest since 2019.
Nonetheless, these lending practices, particularly under the Belt and Road Initiative, have faced criticism for imposing excessive debt burdens on low- and middle-income countries, leading some to struggle with debt servicing or default.
In addition to the 360 billion yuan pledge, Xi stated that China will “encourage and support” Africa in issuing panda bonds in China.
The financial assistance will be allocated as follows: 210 billion yuan in credit facilities, 80 billion yuan in various forms of assistance, and 70 billion yuan in investments by Chinese companies in Africa.
“A friend is someone you share the path with,” Xi quoted an African proverb, underscoring that China and Africa should pursue a “shared path” toward modernization. H
e assured that “no matter how the international landscape may evolve, China shall never waver in its determination to pursue greater solidarity and cooperation with Africa,” as reiterated by Vice Foreign Minister Chen in the briefing.
