President Xi Jinping Promises $51 Billion in Funding and 1 Million Jobs for Africa
President Xi Jinping of China has pledged to increase Chinese support to Africa, the world’s second fastest-growing continent, with a funding commitment of nearly $51 billion. This funding will support more infrastructure initiatives and create at least 1 million jobs in Africa.
Beijing, as the world’s biggest two-way lender, is shifting focus from large infrastructure projects to promoting advanced and green technologies to developing economies. Chinese firms have heavily invested in these technologies and are now looking to sell them to African nations.
President Xi announced that China will carry out 30 infrastructure projects across Africa and provide financial assistance of 360 billion yuan ($50.70 billion). He emphasized the importance of deepening cooperation with Africa in various sectors such as industry, agriculture, infrastructure, trade, and investment.
During a major China-Africa summit in Beijing, President Xi called for a network of land-sea links and coordinated development between China and Africa. Chinese contractors are encouraged to return to Africa after the lifting of COVID-19 restrictions that disrupted their projects.
China approved loans worth $4.61 billion to Africa last year, marking the first annual increase since 2016. President Xi specified that 210 billion yuan of the financing pledge will be disbursed through credit lines, with at least 70 billion in fresh investment by Chinese companies. Additional support will be provided through military aid and other projects.
The Forum on China-Africa Cooperation Summit, which took place in Beijing this year, outlined a three-year programme for China and all African states except Eswatini. President Xi also announced plans to launch 30 clean energy projects in Africa, including cooperation on nuclear technology to address the continent’s power deficit.
While President Xi did not reiterate his previous pledge to buy $300 billion worth of African goods, he committed to expanding market access for African products. Analysts note that China’s stringent phytosanitary rules may hinder their ability to meet this promise.
“We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial cooperation for the benefit of trans-regional development in Africa,” President Xi added.
($1=7.0976 renminbi)
(This story has been corrected to say that Africa is the ‘second fastest-growing’ continent, in paragraph 1)
Analysis:
– President Xi Jinping has pledged significant financial support and job creation for Africa, which could boost economic development on the continent.
– China’s shift towards promoting advanced and green technologies in Africa could lead to sustainable growth and cooperation in various sectors.
– The infrastructure projects and clean energy initiatives announced by China could help address Africa’s power deficit and support industrialization efforts.
– China’s commitment to expanding market access for African goods may face challenges due to strict phytosanitary rules, but the overall cooperation between China and Africa is expected to benefit both regions economically.