BEIJING (Reuters) — In a significant boost to its relations with Africa, China has unveiled a new aid package worth nearly $51 billion, with a focus on advancing infrastructure and technology on the continent, and a commitment to create at least 1 million jobs. The announcement was made by President Xi Jinping during the Forum on China-Africa Cooperation Summit held in Beijing.
Xi’s pledge marks a continuation of China’s extensive involvement in Africa, where it has long been a major lender and investor. This new financial commitment underscores Beijing’s strategic shift towards promoting advanced and green technologies alongside traditional infrastructure projects. The move also signals China’s intention to solidify its economic and diplomatic ties with Africa, the world’s fastest-growing continent.
At the summit, which brought together delegates from over 50 African nations, Xi detailed China’s comprehensive support plan. The plan includes financing of 360 billion yuan ($50.70 billion) for various initiatives across the continent. This funding is part of a broader strategy that encompasses not only infrastructure but also industry, agriculture, and trade.
“We are ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade, and investment,” Xi said in his keynote address. He emphasized the importance of creating a “China-Africa network featuring land-sea links and coordinated development,” highlighting China’s desire to rejuvenate its construction projects on the continent following the disruption caused by COVID-19 restrictions.
Among the key components of China’s new pledge are 30 infrastructure projects and 30 clean energy initiatives. The infrastructure projects will aim to enhance connectivity across Africa, while the clean energy projects will focus on addressing power deficits and promoting sustainable energy solutions. Xi also expressed willingness to collaborate on nuclear technology to bolster Africa’s industrialization efforts.
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In addition to the infrastructure and energy commitments, Xi outlined that 210 billion yuan of the funding would be provided through credit lines, with another 70 billion yuan earmarked for fresh investments by Chinese companies. This comes as a substantial increase from the $4.61 billion in loans China approved for Africa last year, which marked the first annual increase since 2016.
Despite these ambitious plans, the Chinese leader refrained from reiterating a previous pledge made at the 2021 forum in Dakar to purchase $300 billion worth of African goods. Analysts have noted that stringent phytosanitary regulations and other barriers have hindered China’s ability to meet that promise. Instead, Xi focused on expanding market access and supporting the African Continental Free Trade Area (AfCFTA), which aims to enhance intra-African trade and economic integration.
“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,” Xi stated.
The new guidelines and promises reflect China’s evolving approach to its relationship with Africa, shifting from predominantly infrastructure-focused assistance to a more diversified strategy that includes technology transfer and job creation. This approach is expected to bolster China’s influence on the continent and support Africa’s long-term economic growth.
As China continues to position itself as a key partner in Africa’s development, the impact of this new financial package will likely be closely watched by both African nations and international observers. The effectiveness of these initiatives in addressing Africa’s infrastructure needs, energy challenges, and economic development goals will be crucial in shaping the future of China-Africa relations.
