China has renewed its financial pledges to African nations – even as its economy lurches and geopolitical friction with the West worsens – in a move analysts said shows the country will not let domestic strife disrupt the pursuit of its objectives in the region.
Beijing earmarked a total of 360 billion yuan (US$50.6 billion) – including 210 billion yuan in loans, 80 billion yuan in aid, and at least 70 billion yuan of Chinese companies’ investment – to Africa over the next three years as President Xi Jinping welcomed delegations from more than 50 African nations at the three-day Forum on China-Africa Cooperation (FOCAC) in Beijing this week.
The fresh promises came as China is attempting to restructure its overseas investments and loans while continuing to position itself as a global leader with a diplomatic commitment to developing countries.
“The FOCAC suggests [China] doesn’t just want to maintain relationships with African countries but upgrade them, both politically and economically,” said Hannah Ryder, chief executive of Beijing-based consultancy Development Reimagined.
On top of the financial aid, Xi also vowed to open markets to 33 countries in the continent designated by the United Nations as “least developed”, which will entitle them to zero-tariff treatment. The president also said China would launch at least 30 clean energy projects in Africa and create a minimum of one million jobs.