Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
In a significant move, China has pledged nearly $51 billion in financial support for Africa, focusing on infrastructure projects and job creation amid ongoing concerns about debt diplomacy. The announcement was made by Chinese President Xi Jinping at the Forum on China-Africa Cooperation Summit held in Beijing.
The substantial commitment includes a mix of financial assistance and investment. Xi Jinping detailed that 360 billion yuan (approximately $50.70 billion) will be allocated, with 210 billion yuan provided through credit lines and at least 70 billion yuan in direct investments by Chinese companies. Additionally, smaller amounts will be allocated for military aid and other projects.
The new pledges come as Beijing, the world’s largest bilateral lender, seeks to enhance its influence across the resource-rich continent. China has also promised to increase its infrastructure projects in Africa threefold, despite President Xi’s recent emphasis on “small and beautiful” projects centered on advanced and green technologies.
During his address, Xi Jinping highlighted China’s intention to deepen cooperation with Africa across various sectors, including industry, agriculture, infrastructure, trade, and investment. He emphasized the mutual benefits of a strong China-Africa partnership, noting that both regions together represent one-third of the global population.
The Forum also saw the adoption of the Beijing Declaration and the Beijing Action Plan for 2025-2027, which outline a vision for a “shared future” and strategic cooperation between China and Africa. Xi Jinping called for enhanced land-sea links and coordinated development, encouraging Chinese contractors to return to Africa following the lifting of COVID-19 restrictions that had previously disrupted projects.
The new financial assistance will be provided in yuan, signaling China’s intent to promote the international use of its currency. Although debt was not directly addressed by Xi Jinping, the Action Plan for 2024-2027 includes provisions for debt repayment postponements and proposes the establishment of an African rating agency to improve credit ratings and debt management.
United Nations Secretary-General Antonio Guterres, addressing the summit, highlighted the challenges faced by African countries due to inadequate debt relief and limited resources. He called for reforms to the international financial system to address these issues and prevent social unrest.
The summit’s agenda also included a focus on 30 infrastructure connectivity projects and 30 clean energy initiatives in Africa, with China offering to collaborate on nuclear technology and address the continent’s power deficit, which has hindered industrialization efforts.
Despite the new commitments, Xi Jinping did not reiterate a previous pledge from the 2021 summit to purchase $300 billion worth of African goods, instead promising to expand market access unilaterally. Critics argue that stringent phytosanitary rules have made it difficult for China to fulfill this promise.
Nevertheless, the increased financial backing reflects China’s ongoing support for Africa’s development. Last year, China approved $4.61 billion in loans to Africa, marking the first annual increase in such funding since 2016.
As the relationship between China and Africa continues to evolve, representatives from African nations, such as Sierra Leone’s Princess Dugba, express optimism about the partnership. “China is getting us a fish harbour, which is one of the first of its kind,” she noted, emphasizing the tangible benefits of the collaboration.
Sources By Agencies
