China’s $51 Billion Funding and Job Creation Plan Set to Transform Africa

The Chinese leader also proposed a network of land and maritime ties between China and Africa, as well as coordinated development.

The President of China pledges about 360 billion yuan ($51 billion) as an extended help towards Africa. As he addressed Beijing at the biggest summit after the pandemic, he promised the debt-laden country a deepened cooperation in infrastructure and trade with the continent along with the creation of at least 1 million jobs. 

China has stepped up cooperation with Africa in many sectors like, industry, agriculture, infrastructure, investment and trade as mentioned by President Xi. At the three yearly Forum on China-Africa Cooperation summit there were over 50 African nations and UN Secretary General Antonio Guterres that came together at the summit in Beijing. 

China President Xi said 210 billion yuan ($29.6 billion) of the financing would be disbursed through the credit lines and the rest of the 70 billion yuan ($9.9 billion) would be new investment by Chinese companies. While the smaller amounts will be provided through the means of military aid and various other projects. President Xi mentioned this while addressing the delegates from more than 50 African nations gathered in Beijing for the forum.  

China attempts to internationalize the Chinese currency and hence plans to make the financial support in yuan.

The Chinese leader also proposed a network of land and maritime ties between China and Africa, as well as coordinated development.

“We have together built roads, railways, schools, hospitals, industrial parks and special economic zones. These projects have changed the lives and destiny of many people,” Xi told African leaders, according to state news agency Xinhua.

The President of China Xi mentioned that the two countries, Africa and China working together could accomplish new and greater feats and strive to achieve modernization of the Global South. 

On Thursday morning, Xi addressed the leaders at the forum’s opening ceremony in Beijing’s magnificent Great Hall of the People, hailing ties with the continent as being in their “best period in history”.

According to Xinhua, after the opening ceremony, delegates accepted the Beijing Declaration on “a shared future in the new era” and the Beijing Action Plan for 2025-27. 

China is aiming to widen its influence in the African nations amid the increasing economic and diplomatic separation with Western countries which includes the US.

Beijing’s outreach coincides with the second-largest economy in the world slowing down due to a number of issues, including a protracted real estate crisis and a shrinking population.

Almost one quarter of continent’s exports, which is mainly minerals, metals and fuels, are contributing to the giant’s economy and hence the African continent becomes China’s biggest trade partner. 

On the contrary Beijing is Africa’s biggest financier and has promised $191 billion to most African countries between the years 2006 and 2021. 

China pledged a sum of $10 billion as investment and investments through credit lines at the 2021 China-Africa summit held in Dakar. 

In the lead-up to the three-day summit, African leaders announced a slew of agreements on infrastructure, agriculture, mining, and energy.

Beijing and South Africa also made an agreement to sign a deal that would waive off the export of  fresh Zimbabwean avocados to China. Kenyan President William Ruto claimed Xi promised to open up China’s markets to agricultural exports from his country.

The two sides agreed to collaborate on the expansion of Kenya’s Standard Gauge Railway, which connects the capital Nairobi to the port city of Mombasa and was funded by Exim Bank of China.

Ruto also got a guarantee for further cooperation with China on the Rironi-Mau Summit-Malaba road, which Kenyan media has reported will cost $1.2 billion.

Ruto appealed to China for a $1 billion loan last year in order to finish other development projects that had hit a standstill. He also asked for the restructuring of current debt. At present, the nation owes China in excess of $8 billion.