“In the next three years, the Chinese government wants to provide financial support of 360 billion yuan”: on the occasion of the Forum on China-Africa Cooperation, Chinese President Xi Jinping promised this Thursday, September 5, more than 50 billion dollars in financing over three years to African countries, a sum equivalent to 45 billion euros.
The largest diplomatic meeting held in Beijing since the Covid-19 pandemic, the forum summit has brought together more than 50 African leaders since Wednesday 4 and until Friday 6 September, according to Chinese state media. The opportunity to strengthen China-Africa relations which are currently experiencing, according to Xi Jinping’s speech at the opening ceremony, their “best period in history”. “China is ready to deepen its cooperation with African countries in industry, agriculture, infrastructure, trade and investment,” added the head of state.
In addition to promising to create at least one million jobs in Africa, Beijing will provide $141 million in military grants and extensive training. In total, 6,000 military personnel and 1,000 police and law enforcement officers in Africa are expected to benefit from this support.
Projects that raise questions
These actions are part of the Middle Kingdom’s strategy of influence on the continent. With 167.8 billion dollars (151.8 billion euros) in bilateral trade in the first half of 2024, according to Chinese official media, the country is already the largest trading partner of the African continent. Over the past two decades, hundreds of thousands of workers and engineers have been sent to Africa, allowing China to gain privileged access to the continent’s vast natural resources, including copper, gold and lithium.
Loans from public banks have, for their part, made it possible to finance numerous infrastructures intended to boost African growth (railways, ports, roads, etc.). Projects that have not failed to raise questions by contributing to increasing the indebtedness of certain countries. The amount of loans granted by China to African countries had, however, been divided by six last year compared to the peaks reached in 2016, when it was close to 30 billion dollars (27 billion euros).
A reduction in investments in Africa justified, according to analysts, by the current economic slowdown in China. And this, despite the growing competition with the United States on this continent, in terms of political influence and access to natural resources.
More cooperation
On the sidelines of the summit, the Chinese president has held one-on-one talks with a dozen African leaders in recent days, promising more cooperation on a range of projects. On Wednesday, September 4, Zambian President Hakainde Hichilema announced an agreement between the Zambian national electricity company (ZESCO) and the Chinese group PowerChina to expand the use of rooftop solar panels in this southern African country. According to Zambian media, Beijing has also promised a billion dollars to advance the Tanzania-Zambia train project. A crucial development in this part of the African continent rich in natural resources.
Nigeria, one of the African countries that has borrowed the most from China, and the Asian giant have announced plans to “strengthen cooperation” in infrastructure, including “transport, ports and free trade zones”. Zimbabwe, for its part, has obtained the promise of strengthened cooperation in “agriculture, mining, clean energy and transport infrastructure”, according to a press release.
Kenyan President William Ruto, for his part, indicated that Xi Jinping had promised to open the Chinese market to his country’s agricultural products. The two sides also agreed on the expansion of the Standard Gauge Railway (SGR) line, linking the capital Nairobi to the port of Mombasa, notably financed by the Export-Import Bank of China (Exim Bank). In addition to these projects, Beijing has also committed to more cooperation on the Rironi-Mau Summit-Malaba highway, which is expected to cost $1.2 billion according to Kenyan media. Last year, William Ruto asked China for a $1 billion loan and the restructuring of existing debt: his country must now repay more than $8 billion to China.
Also speaking in Beijing, UN Secretary-General Antonio Guterres said that China and Africa could “lead the renewable energy revolution.” On one condition: cooperation.