In a bold move to enhance China-Africa relations, Chinese President Xi Jinping announced on Thursday that China will extend 360 billion yuan (over $50 billion) in financial aid to Africa over the next three years.
This announcement was made during the ninth Forum on China-Africa Cooperation Summit, a key event aimed at shaping future policies and cooperation between the two regions.
Xi highlighted the unprecedented strength of the China-Africa relationship, stating that it is currently at its peak.
He expressed China’s commitment to expanding cooperation across various sectors, including industry, agriculture, infrastructure, trade, and investment, with a focus on mutual modernization that benefits both parties.
The summit, which has attracted leaders from more than 50 African nations, comes as China seeks to reframe its economic partnerships and trade relations amid rising geopolitical tensions with the West.
During the summit, African leaders, including South Africa’s Cyril Ramaphosa and Kenya’s William Ruto, have engaged in direct discussions with Xi.
Expected outcomes of the summit include new trade and investment agreements, along with the signing of Beijing’s three-year action plan. This summit follows previous ones where China made substantial financial commitments for infrastructure development across Africa.
In addition to the 360 billion yuan pledge, Xi also promised to support Africa in issuing panda bonds in China. The financial package includes 210 billion yuan in credit facilities, 80 billion yuan in various forms of assistance, and 70 billion yuan in investments from Chinese enterprises.
Despite these promising commitments, China’s previous pledge to purchase $300 billion in African goods by 2021 was not fully realized.
Nevertheless, China remains Africa’s largest trading partner, with trade volume soaring to nearly 2 trillion yuan in 2023 and a record 1.19 trillion yuan in the first seven months of this year alone.
China, also the largest creditor to many African nations, has channeled over $180 billion into infrastructure projects since 2000.
However, there have been concerns about the debt burdens resulting from these loans, with some countries struggling to meet their obligations.
Despite these challenges, Xi reiterated China’s unwavering support for Africa, emphasizing that no matter how international dynamics shift, China remains dedicated to deepening solidarity and cooperation with the continent.
