China pledges to create a million jobs and gives Africa $51 billion in new funding

President Xi Jinping announced on Thursday that China will increase its support for debt-ridden Africa by providing nearly $51 billion in financing over the course of three years, supporting additional infrastructure projects, and ensuring the creation of at least 1 million jobs.

Xi informed the delegates from over 50 African nations participating in the three-yearly Forum on China-Africa Cooperation Summit in Beijing that China was prepared to intensify its collaboration with Africa in the areas of infrastructure, agriculture, trade, and investment.

“Chinese and African populations constitute one-third of the global population.” According to Xi, “Global modernization will not occur in the absence of our modernization.”

China, the world’s largest bilateral lender, has pledged to implement three times the number of infrastructure projects in resource-rich Africa, despite Xi’s newly declared preference for “small and beautiful” schemes that are centered around the sale of advanced and green technologies. Chinese firms have made substantial investments in these schemes.

Over the course of three years, the Chinese leader pledged 360 billion yuan ($50.70 billion) in financial assistance. However, it was specified that 210 billion would be disbursed through credit lines and at least 70 billion would be invested in new projects by Chinese companies.

Other initiatives and military aid would provide smaller amounts.

China committed to investing a minimum of $10 billion and providing the same amount in credit lines at the 2021 China-Africa summit in Dakar. This time, the financial assistance would be provided in yuan, which appears to be a move to further internationalize the Chinese yuan.

Chinese state media reported that the Beijing Declaration on building “a shared future in the new era” and the Beijing Action Plan for 2025-2027 were adopted by delegates following the opening ceremony.

Xi also advocated for a China-Africa network of land and sea linkages and coordinated development, as well as for Chinese contractors to return to the continent following the lifting of COVID-19 restrictions that had disrupted their projects.

Despite Beijing’s status as the largest bilateral lender to numerous African nations, he did not address debt during his speech. However, the Action Plan stipulated repayment postponements and requested the establishment of an African rating agency.

Secretary General Antonio Guterres of the United Nations stated at the summit that the scarcity of resources and the inadequate access to debt relief in African countries were a prescription for social unrest.

The provisions for lending in Africa are inconsistent across different countries. Countries such as Ethiopia prioritize Gulf states like Saudi Arabia subsequent to China. Others, such as Kenya, would have numerous creditors, including European nations. Debts to private bondholders and multilateral organizations, including the World Bank, are also present.

ASHARED FUTURE

The forum defines a three-year program for China and all African states except for Eswatini, which maintains diplomatic relations with Taiwan.

In addition to 30 infrastructure connectivity projects, Xi stated that China was prepared to begin 30 renewable energy projects in Africa. He also offered to collaborate on nuclear technology and address a power deficit that has impeded industrialization efforts.

He did not, however, reiterate his commitment to the Asian giant to purchase $300 billion worth of African products at the 2021 forum in Dakar. Instead, he committed to unilaterally expanding market access.

Beijing’s regulations regarding plant sanitation inspections are excessively stringent, according to analysts, rendering it impossible for China to fulfill its commitment.

However, Africa appears to be on the brink of receiving additional funding from China. Last year, China approved loans totaling $4.61 billion for Africa, marking the first annual increase since 2016.

On the summit’s fringes, Princess Dugba, Sierra Leone’s minister of fisheries and marine resources, stated, “I am present to ascertain the most effective method of enhancing our relationship with China.”

“China is getting us a fish harbour, which is one of the first of its kind,” said the representative.

($1 = 7.0976 Chinese yuan renminbi)