China’s President Xi Jinping has committed 360 billion yuan ($50.70 billion, Kshs. 6.512 trillion*) in financing to the continent and at least one million jobs at the ongoing Forum on China-Africa Cooperation Summit in Beijing.
- •58.3 percent of the financial assistance will be channelled as credit, while 22.6 percent will be invested by Chinese companies over the next three years.
- •Jinping also pledged to expand access for goods from the continent to the Chinese market.
- •At the summit, 50 African leaders and China signed an action plan for the next three years, which includes a call to establish a rating agency for the continent.
Jinping also promised to assist the continent create “at least one million jobs.” “China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment,” he added.
The Debt Question
China pledges come at the back of renewed debt flow onto the continent after a five-year slowdown. In 2023, the East Asian giant loaned $4.61bn which while still far below the high levels seen between 2009 and 2018, is the highest since 2019.
Debt repayment has been a lingering concern for many African economies, after a decade of binging on different kinds of debt to fund infrastructure projects. At the summit, UN Secretary General Antonio Guterres said that debt hampers development. “Many African countries are mired in debt and struggling to invest in sustainable development,” Guterres said.
“They have no access to effective debt relief, scarce resources, and clearly insufficient concessional funding to respond to the basic needs of their population,” he said.
He also highlighted the need to “correct some historic injustices” such as the fact that Africa does not have a permanent seat at the UN Security Council.
China’s Basket of Promises
At bilateral meetings in the lead up to the Summit, Tanzania got a commitment for assistance in completing the TAZARA railway that connects the country to Zambia. Zambia signed a partnership on solar panels for its state utility firm, while Nigeria signed a wide ranging deal including collaboration in developing “transportation, ports and free trade zones.” Kenya obtained a commitment to cooperate in completing the Standard Gauge Railway and the Rironi-Mau Summit-Malaba road.
The Summit coincides with a similar event hosted by Indonesia, which saw a smaller turnout as most African nations chose to send delegations to China. About 29 nations sent delegations to the Bali summit, where Indonesia plans to sign business deals worth $3.5billion.
- •(1 Chinese Yuan=KShs. 18.09)