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

[September 05, 2024]  By Laurie Chen
 
BEIJING (Reuters) - President Xi Jinping pledged on Thursday to step up Chinese support to Africa, the world's second fastest-growing continent, with funding of nearly $51 billion, backing for more infrastructure initiatives and a promise to create at least 1 million jobs.  

Chinese President Xi Jinping delivers his keynote speech at the opening ceremony of the ninth Forum on China-Africa Cooperation (FOCAC) Summit, at the Great Hall of the People in Beijing, China September 5, 2024. REUTERS/Florence Lo

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 co-ordinated 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 program 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 industrialization 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.

($1=7.0976 Chinese yuan renminbi)

(Reporting by Laurie Chen; Writing by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

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