- Chinese leader Xi Jinping has pledged over $50 billion in financing for Africa over the next three years.
- This sets the stage for Beijing-led cooperation in the financing of infrastructure, trade, agriculture, mining, and energy projects.
- Beijing has also offered to create at least one million jobs in Africa.
In recent years, economies across Africa and the world’s second biggest economy, China, have been enjoying strong ties, powered by Beijing’s massive financing of key projects. A the ongoing China-Africa forum, several financing, investment, and trade deals are, however, poised to further cement this relationship, raising the continent’s relevance in the global contest for its rich resources and a fast growing market.
On Thursday, Chinese leader Xi Jinping’s pledged over $50 billion in financing for Africa over the next three years, setting the stage for deeper Beijing-led cooperation in critical industries such as infrastructure, trade, agriculture, mining, and energy.
The 2024 Summit of the Forum on China-Africa cooperation, which has attracted more than 50 African leaders and UN Secretary-General Antonio Guterres, demonstrated China’s continued interest in supporting Africa’s economic transformation at a time when other global powers such as the US, Russia and Europe are also seeking economic partnerships with several countries across the continent.
With a focus on mutual development, job creation, and sustainable growth, Beijing is fashioning several multibillion-dollar pacts with African countries, opening a window of opportunity in driving Africa’s development agenda.
China-Africa partnerships
Speaking at the forum on Thursday, Xi Jinping lauded the ties between China and Africa, stating that they are in their “best period in history.” The deals signed during the summit demonstrate the growing influence of China in Africa’s development trajectory.
Over the next three years, China has committed to providing 360 billion yuan ($50.7 billion) in financial support. Over half of this financing will be credit facilities, while a total of $11 billion will be disbursed in various forms of assistance.
Additionally, Xi’s pledge also includes $10 billion to encourage Chinese firms to invest in Africa. This move is tailored to help create at least one million jobs on the continent that is grappling with high levels of joblessness especially among the youth.
In addition to economic development, China has promised $141 million in grants for military assistance, as well as training programs for African military personnel and law enforcement officers. These initiatives underscore the breadth of China’s involvement in Africa, spanning economic, social, and security domains.
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Infrastructure development at the heart of Africa-China cooperation
Infrastructure has been a focal point of Africa-China cooperation, with many African countries looking to Beijing to help build roads, railways, ports, and power plants. China has already played a significant role in financing and constructing large-scale infrastructure projects across the continent, helping address Africa’s infrastructural deficit.
At the summit, several African leaders secured major deals to expand infrastructure cooperation. For instance, Tanzania and China made headway in resuming a long-stalled railway project connecting Tanzania to Zambia.
This railway, crucial for the transportation of minerals and other resources, is expected to receive a $1 billion commitment from Beijing, cementing China’s continued interest in improving Africa’s transportation networks.
Similarly, Nigerian President Bola Tinubu struck agreements with China to deepen cooperation in infrastructure, specifically in transportation, ports, and free trade zones. These agreements will help Nigeria boost its industrial capacity and further integrate into global trade networks.
Additionally, Kenya also secured new commitments for the expansion of its Standard Gauge Railway (SGR), a crucial link between the capital Nairobi and the port city of Mombasa. The SGR, which was financed by China’s Exim Bank, has become a key asset in facilitating trade and reducing transport costs, and Kenya has been seeking financing to extend it from Naivasha to her border with Uganda.
Agriculture: A Growing Priority
Agriculture remains a cornerstone of many African economies, and the deals inked during the summit reflect a growing emphasis on this industry which accounts for the highest percentage of jobs. China has been increasingly interested in tapping into Africa’s agricultural potential, both for its food security and to diversify its economic engagement with the continent.
Zimbabwe and China signed agreements for deeper cooperation in agriculture, with a focus on environmentally friendly practices and modernizing traditional farming methods. One particularly notable outcome was the agreement allowing Zimbabwe to export fresh avocados to China.
This deal highlights China’s growing appetite for African agricultural products, creating new export markets for African countries and offering the potential for farmers to benefit from increased trade opportunities.
Kenya, which has long sought to increase its agricultural exports, also secured China’s commitment to open up its markets to Kenyan products. By enhancing market access for Kenya’s agricultural sector, this deal represents a win for the country’s farmers and agribusinesses, positioning them to tap into the vast Chinese market.
Energy and Mining: Tapping Africa’s Rich Resources
China’s interest in Africa’s natural resources has been a key driver of its engagement on the continent. As the world’s second-largest economy, China’s growing demand for minerals such as copper, gold, lithium, and rare earth metals has fueled its investment in Africa’s mining sector. Many African countries, rich in these resources, have benefited from Chinese investments in mining infrastructure and extraction operations.
At the summit, Zambian President Hakainde Hichilema secured a major deal with PowerChina to expand the use of rooftop solar panels in Zambia. This renewable energy project is part of a broader effort by Zambia to diversify its energy mix and reduce its reliance on hydropower. The deal also reflects China’s growing interest in renewable energy projects, aligning with global efforts to transition towards greener energy solutions.
In Zimbabwe, mining cooperation was also a key focus of discussions. The two countries agreed to deepen collaboration in environmentally friendly mining practices, as well as in developing new energy technologies. These agreements will help Zimbabwe modernize its mining industry, making it more sustainable and efficient, while tapping into China’s expertise in renewable energy.
One of the most significant promises made by China at the forum is the creation of at least one million jobs across Africa. Job creation is a top priority for many African governments, as the continent faces a growing youth population and high unemployment rates.
