IN a landmark move that underscores the shared values and mutual desire to improve lives across the world’s most populous country and largest continent, China and Africa have announced a groundbreaking deal aimed at fostering development and modernization.
Chinese President Xi Jinping, addressing delegates from over 50 African nations at the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, unveiled an ambitious plan to inject nearly $51 billion into African economies over the next three years. This financial commitment is part of a broader strategy to deepen cooperation between China and Africa in key areas such as industry, agriculture, infrastructure, trade, and investment.
“China and Africa account for one-third of the world population. Without our modernization, there will be no global modernization,” Xi declared, highlighting the global significance of this partnership.
Key points of the new deal include:
1. Financial support: China has pledged 360 billion yuan ($50.70 billion) in financial assistance, with 210 billion yuan to be disbursed through credit lines and at least 70 billion yuan in fresh investment by Chinese companies.
2. Infrastructure boost: China has committed to tripling the number of infrastructure projects across Africa, despite Xi’s previous emphasis on “small and beautiful” schemes.
3. Job creation: The initiative aims to create at least 1 million jobs across the African continent.
4. Clean energy focus: China has offered to launch 30 clean energy projects and cooperate on nuclear technology to address Africa’s power deficit.
5. Debt relief considerations: While not explicitly mentioned in Xi’s speech, the Beijing Action Plan for 2025-2027 includes terms for repayment postponements and calls for the establishment of an African rating agency.
The summit also saw the adoption of the Beijing Declaration on building “a shared future in the new era” and the Beijing Action Plan for 2025-2027, outlining a comprehensive roadmap for China-Africa relations in the coming years.
However, the deal is not without its challenges. UN Secretary-General Antonio Guterres warned that inadequate access to debt relief and scarce resources for African countries could lead to social unrest. Additionally, China’s previous pledge to buy $300 billion worth of African goods was not reiterated, with analysts citing strict Chinese plant sanitary checks as a potential barrier.
Despite these concerns, many African nations view the partnership optimistically. Ahead of the finalisation of the 2024 FOCAC Summit, the following bilateral deals were struck between China and African countries, represented by their heads of state:
- China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving rail-sea transportation in resource-rich East Africa.
- China signed multiple agreements with Chad and Senegal involving projects ranging from electricity and infrastructure to drinking water and communications technology.
- China and Nigeria agreed to international cooperation on financial intelligence against money laundering and terrorist financing, and to support Nigeria’s efforts to maintain order in financial and foreign exchange markets.
