China Pledges Billions in African Investment, Sidestepping Debt Relief

China has announced a substantial financial commitment to Africa, promising 360 billion yuan (about $50.7 billion) over the next three years in credit lines and investments. This pledge, made during the Forum for China-Africa Cooperation (FOCAC), marks a significant step in China’s ongoing engagement with the continent.

The new funds will support 30 infrastructure projects aimed at improving trade links across Africa. Additionally, China plans to launch 30 clean energy projects and offer cooperation on nuclear technology to address the continent’s power deficit.

While the commitment surpasses China’s 2021 pledge, it falls short of the $60 billion promised in both 2015 and 2018. This shift reflects China’s more cautious approach to overseas lending in recent years, focusing on “small and beautiful” projects due to domestic economic pressures and increased debt risks among African nations.

Notably absent from the announcements was any substantial debt relief, which many African countries had hoped for. Instead, China urged other creditors to participate in debt restructuring efforts.

The forum also saw individual agreements, with Ethiopia and Mauritius announcing new currency swap lines with China’s central bank. Kenya reported progress in talks to restart lending for key projects.

Despite the lack of debt relief, many African leaders expressed optimism about China’s increased commitments to the continent’s security, humanitarian challenges, and non-financial affairs. The summit underscores China’s ongoing efforts to maintain its influential position in Africa amid growing competition from other global powers.

 

About Geraldine Boechat 2850 Articles
Senior Editor for Medafrica Times and former journalist for Swiss National Television. former NGO team leader in Burundi and Somalia