09/06 – International News Story

Chinese President Xi Jinping has committed to generating “at least” one million jobs in Africa as part of China’s effort to strengthen its role as the preferred development partner for the Global South. [Al Jazeera]

For nearly 25 years, the Forum on China-Africa Cooperation (FOCAC) has been a key diplomatic event for African leaders, serving as an indicator of the evolving relationship between Africa and its largest trading partner, China. Since its inception in 2000, analysts have looked to this triennial event to assess the state of these ties.

During the Forum on China-Africa Cooperation this week, Xi announced that China would offer African nations 360 billion yuan ($51 billion) in new financial support, along with backing for 30 infrastructure projects aimed at improving connectivity across the continent. This initiative highlights Beijing’s strategic focus on fostering development partnerships and deepening ties with Africa.

Addressing representatives from over 50 African nations in Beijing for the forum, President Xi Jinping announced that 210 billion yuan ($29.6 billion) of the pledged financing would be provided through credit lines, with at least 70 billion yuan ($9.9 billion) allocated for new investments by Chinese companies. [Al Jazeera]

Additional support would come through smaller amounts designated for military aid and other projects. Notably, the financial assistance will be given in yuan, a move likely aimed at promoting the international use of China’s currency.

Xi also advocated for the creation of a China-Africa network of land and sea routes, promoting coordinated development across the continent. He highlighted the achievements of China-Africa cooperation, mentioning joint efforts that have resulted in the construction of roads, railways, schools, hospitals, industrial parks, and special economic zones. According to Xi, these projects have significantly impacted the lives and futures of many people across Africa, as reported by the state news agency Xinhua.

President Xi Jinping expressed confidence that by working together, the Chinese and African people could achieve “new and even greater feats” and lead the “modernisation” of the Global South. 

Following the opening ceremony of the forum, delegates endorsed the Beijing Declaration, which focuses on building “a shared future in the new era.” They also adopted the Beijing Action Plan for 2025-27, outlining future cooperation initiatives, as reported by Xinhua. [Al Jazeera]

Opinion: 

China is aiming to increase its influence in Africa as it faces growing economic and diplomatic tensions with Western nations, particularly the United States. This push for greater engagement comes at a time when China’s economy is experiencing slower growth, grappling with issues such as a long-lasting property crisis and a shrinking population.

As Africa’s largest trade partner, China accounts for nearly a quarter of the continent’s exports, which primarily consist of minerals, fuels, and metals. This strong trade relationship underscores China’s strategic interest in securing resources and maintaining its foothold in the region.

As China’s economy slows and African governments face tighter budgets, few expected major financial commitments from Beijing this year. President Xi ultimately pledged $50 billion, an increase from 2021 but still below pre-pandemic levels. The relationship is less intense compared to the 2000s and 2010s, when China poured billions into African infrastructure as part of the Belt and Road Initiative (BRI). During that period, geopolitical competition in Africa was mostly seen as a contest between “China and the West.” 

China is not withdrawing from Africa, and African countries remain engaged. A senior official in Ethiopia noted that despite perceptions, China remains Africa’s largest economic partner, and maintaining good relations with Beijing is essential. 

China continues to be Africa’s biggest trade partner, with trade volumes reaching a record $282 billion in 2023, partly driven by demand for minerals crucial to green energy. This figure is more than double that of Africa’s second-largest trade partner, India. [The Economist] 

China also remains the top lender to sub-Saharan Africa. After years of declining lending, there was a resurgence in 2023, with new loans supporting both green projects, like solar farms, and large infrastructure, such as a $1 billion railway loan to Nigeria. Despite talk of a shift toward smaller, more sustainable projects, China remains involved in large-scale infrastructure development.

– P.T.