China offers Africa $51 billion in fresh funding, promises a million jobs

BEIJING, China – President Xi Jinping pledged on Thursday, September 5, to step up China’s support to the world’s fastest-growing continent with funding of nearly $51 billion, backing for more infrastructure initiatives, and a promise to create at least 1 million jobs.

The world’s biggest two-way lender, Beijing showed a desire to move away from funding big-ticket infrastructure and focus instead on selling to developing economies the advanced and green technologies in which Chinese firms have invested heavily.

Still, Xi told delegates from more than 50 African nations that the world’s second-largest economy would carry out 30 infrastructure projects across the resource-rich continent, and offer 360 billion yuan ($50.70 billion) in financial assistance.

“China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,” Xi told delegates at a major China-Africa summit in Beijing.

He called for “a China-Africa network featuring land-sea links and coordinated development,” as he told Chinese contractors to return to the 1-billion-strong continent, after the lifting of COVID-19 curbs that disrupted its schemes.

Last year, China approved loans worth $4.61 billion to Africa, in the first annual increase since 2016.

Xi said 210 billion yuan of the financing pledge would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies, with smaller amounts provided through military aid and other projects.

The Forum on China-Africa Cooperation Summit, held this year in the Chinese capital, chalks out a three-year programme for China and every African state bar Eswatini, which retains ties to Taiwan.

Besides 30 infrastructure connectivity projects, Xi added, “China is ready to launch 30 clean energy projects in Africa,” offering to co-operate on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.

But the Chinese leader did not reiterate his pledge at the 2021 forum in Dakar for the Asian giant to buy $300 billion worth of African goods, pledging only to unilaterally expand market access.

Analysts say Beijing’s phytosanitary rules for market access are too strict, making China unable to meet that promise.

“We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial co-operation for the benefit of trans-regional development in Africa,” Xi added. – Rappler.com