China offers Africa $51 billion in fresh funding and promises a million jobs, by Reuters

By Laurie Chen

BEIJING (Reuters) – President Xi Jinping on Thursday pledged to step up China’s support for Africa, the world’s second-fastest-growing continent, with nearly $51 billion in funding, supporting several infrastructure initiatives and a promise of to create at least 1 million jobs.

The world’s biggest two-way lender, Beijing has signaled its willingness to move away from financing big infrastructure and focus instead on selling to developing economies the advanced, green technologies in which Chinese firms have invested heavily .

However, Xi told delegates from more than 50 African nations that the world’s second-largest economy will carry out 30 infrastructure projects on the resource-rich continent and provide financial assistance of 360 billion yuan (50 .70 billion dollars).

“China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,” Xi told delegates at a major China-Africa summit in Beijing.

He called for “a China-Africa network that features land-sea links and coordinated development” as he told Chinese contractors to return to the 1 billion-strong continent after the lifting of COVID-19 restrictions that have they disrupted the schemes.

Last year, China approved $4.61 billion in loans to Africa, the first annual increase since 2016.

Xi said 210 billion yuan of the financing commitment would be paid through credit lines and at least 70 billion in new investment from Chinese companies, with smaller amounts provided through military aid and other projects.

The forum for the China-Africa Cooperation Summit, held this year in the Chinese capital, sets out a three-year program for China and every African state in Eswatini that maintains ties with Taiwan.

In addition to 30 infrastructure connectivity projects, Xi added, “China is ready to launch 30 clean energy projects in Africa,” offering to cooperate on nuclear technology and address an energy shortage that has delayed efforts of industrialization.

But the Chinese leader did not reiterate his commitment at the 2021 Dakar forum for the Asian giant to buy $300 billion worth of African goods, promising only to unilaterally expand market access.

Analysts say Beijing’s phytosanitary rules for market access are too strict, making it impossible for China to fulfill that promise.

“We are ready to assist the development of the African Continental Free Trade Area and deepen logistics and financial cooperation for the benefit of trans-regional development in Africa,” Xi added.

(1 USD=7.0976 Renminbi)

(This story has been corrected to say Africa is the “second fastest growing continent” in paragraph 1)