China Pledges $51 Billion to Africa, Expanding Strategic Ties
Xi emphasized that past joint projects have transformed the lives of millions, from roads and railways to hospitals and industrial zones
At the ninth Forum on China-Africa Cooperation (FOCAC) in Beijing, Chinese President Xi Jinping unveiled a $51 billion financing package for African countries, reinforcing China’s commitment as a key partner for the Global South. The pledge highlights Beijing's strategy to enhance its influence across Africa amid rising tensions with the West.
Xi announced plans to create at least one million jobs and fund 30 new infrastructure projects across the continent. The $51 billion package, equivalent to 360 billion yuan, will primarily consist of credit lines (210 billion yuan or $29.6 billion) and new investments by Chinese companies (70 billion yuan or $9.9 billion). Smaller amounts will support military aid and other projects. Notably, the financing will be in yuan, aiming to further internationalize the Chinese currency and reduce reliance on the US dollar.
Strengthening Economic and Infrastructure Ties
China has long been Africa’s largest trading partner and a major lender. Xi emphasized that past joint projects have transformed the lives of millions, from roads and railways to hospitals and industrial zones. He called for a "China-Africa network of land and sea links" to boost connectivity, urging Chinese contractors to re-engage with Africa now that COVID-19 restrictions have been lifted.
The summit saw delegates adopt the "Beijing Declaration" for a "shared future" and a "Beijing Action Plan" for 2025-2027, signaling a renewed commitment to cooperation. The Action Plan includes terms for debt repayment postponements and proposes the creation of an African credit rating agency to manage financial risks more effectively.
China’s Expanding Role Amid Global Shifts
China’s increased engagement in Africa comes as it faces a slowing economy at home due to a prolonged property crisis and demographic shifts. By offering substantial financial support, Beijing aims to consolidate its influence in Africa, a region rich in resources and strategic potential. Xi stated, "China and Africa account for one-third of the world population. Without our modernization, there will be no global modernization."
This pledge marks a significant increase from the 2021 summit, where China committed $10 billion in investments and credit lines. Xi's speech did not address Africa's growing debt to China directly but focused instead on mutual benefits, cooperation, and development.
Mixed Reactions and Future Prospects
African leaders have generally welcomed the new funding, though concerns about financial dependency remain. United Nations Secretary-General António Guterres warned of potential social unrest if debt relief is not adequately addressed. “African nations need careful management of their debt to ensure stability,” Guterres noted.
China's expanding role in Africa offers both opportunities and challenges. As Beijing continues to offer financial incentives, African countries are balancing their partnerships to navigate the shifting geopolitical landscape. The results of these efforts will significantly influence the future of China-Africa relations and global dynamics.
