Chinese President Xi Jinping on Thursday pledged more than £40bn in financing for Africa over the next three years, promising to boost cooperation in infrastructure and trade with the continent.
Speaking at China’s largest summit since the pandemic in Beijing, Mr Xi told more than 50 African leaders and UN Secretary General Antonio Guterres that ties with the continent were at 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 $50.7 billion,” Mr Xi added.
More than half of this will be in credit, with £8.8bn “in various types of assistance” and £8bn to encourage Chinese firms to invest.
Mr Xi also vowed to help “create at least one million jobs for Africa”.
UN chief Mr Guterres told the gathering that growing China-Africa ties 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.
China, the world’s second-largest economy, is Africa’s biggest trading partner. It has provided billions in loans to African nations, helping to build infrastructure but sometimes sparking controversy over debt burdens.
Analysts suggest Beijing may be recalibrating its approach due to domestic economic challenges and growing geopolitical tensions with the United States.
However, the summit has already yielded numerous agreements. Zambian President Hakainde Hichilema secured a deal between state-owned ZESCO and China’s PowerChina to expand rooftop solar panel use.
Nigeria, one of Beijing’s largest African debtors, signed a joint statement with China to “deepen cooperation” in infrastructure, including “transportation, ports and free trade zones”.
China’s economic footprint in Africa continues to expand, with Beijing positioning itself as the continent’s primary trading ally. The Asian powerhouse has shown keen interest in Africa’s rich mineral deposits, including sought-after resources such as copper, gold, lithium and rare earth elements.
Over the years, China has extended substantial financial support to African nations, funnelling billions into infrastructure development. However, this approach has not been without controversy. Critics argue that the generous lending practices have left some African governments grappling with overwhelming debt burdens.
Recent shifts in China’s domestic economic landscape, coupled with escalating geopolitical tensions with the United States, may be prompting a recalibration of Beijing’s African strategy, according to some analysts. They suggest that China’s traditionally expansive approach to the continent might be undergoing a subtle transformation.
Nevertheless, the ongoing summit has yielded a flurry of new cooperative agreements. These span a diverse range of sectors, from traditional infrastructure projects like railways to renewable energy initiatives and even agricultural ventures.
A case in point is Zambia’s recent engagement with China. In talks held on Wednesday, Zambian President Hakainde Hichilema brokered a deal between ZESCO, the national power utility, and PowerChina, a Chinese state-owned enterprise. The agreement aims to significantly boost the adoption of rooftop solar technology across Zambia, marking a step towards greener energy solutions on the continent.
