China to launch green technology exports to African leaders as Western restrictions loom By Reuters

By Joe Cash and Duncan Miriri

BEIJING/NAIROBI (Reuters) – China will urge a summit of 50 African nations in Beijing this week to take more of its goods before Western restrictions come into force on its exports such as electric vehicles and panels solar, in exchange for several loan commitments. and investments.

But the dozens of African leaders arriving in the Chinese capital for the triennial event may not be easy bait. They will want to hear how China plans to meet its unfulfilled pledge from the previous summit in 2021 to buy $300 billion in goods.

They will also seek assurances on the progress of incomplete Chinese-funded infrastructure projects, such as a railway designed to link the vast East African region.

“The award will go to those countries that have carefully studied the changes in China and aligned their proposals with China’s new narrow priorities,” said Eric Olander, co-founder of the China-Global South Project.

“That’s a big ask for a continent that generally has very poor literacy in China.”

Africa’s biggest lender, investor and trading partner is moving away from financing big projects on the resource-rich continent, preferring instead to sell it advanced and green technologies in which Chinese firms have invested heavily.

As Western curbs on Chinese exports loom, Beijing’s top priority will be finding buyers for its electric vehicles and solar panels, areas where the US and European Union say it has overcapacity, and building overseas manufacturing bases for emerging markets.

China has already begun tweaking the terms of its loans to Africa, setting aside more for solar farms, electric vehicle installations and 5G Wi-Fi facilities, while cutting back on bridges, ports and railways.

Last year, China provided 13 loans worth just $4.2 billion to eight African states and two regional banks, data from Boston University’s Global Development Policy Center showed, with about $500 million for hydropower and solar projects.

GEOPOLITICAL BOMBING

When President Xi Jinping opens the ninth China-Africa Cooperation Summit Forum on Thursday, he is expected to introduce leaders from The Gambia, Kenya, Nigeria, South Africa and Zimbabwe to connect to the burgeoning energy industry greens from China.

Delegates from every African state will be present, except for Eswatini, with which Beijing has no ties.

To avoid losing market share, China’s geopolitical rival, the United States, has begun hosting African leaders.

Britain, Italy, Russia and South Korea have also held Africa summits in recent years, recognizing the potential of the region’s youth and its 54 UN seats.

But China’s exaggerated role as a financial and trading partner makes its meetings a much bigger deal.

“There is no other development partner that does this much,” said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy.

“But are African leaders able to push China to really develop so that the balance of ‘win’ is much more on the African side?”

MATCHING WANTS AND NEEDS

China will want to talk about boosting trade and access to minerals like copper, cobalt and lithium in countries like Botswana, Namibia and Zimbabwe.

But it could be wary of more funding commitments following debt restructuring offers in economies such as Chad, Ethiopia, Ghana and Zambia from the 2021 summit.

“We are likely to see continued caution in financing mega-projects,” said Lina Benabdallah of Harvard University’s Center for African Studies, adding that Beijing would push for technology transfers.

“I’m certainly keen to understand how many new financial commitments can come out of this and how they will deal with existing debt to African countries,” said Yvette Babb, portfolio manager at asset management firm William Blair.

But China’s enthusiasm for lending could be tempered by security concerns, such as a dispute between Niger and Benin that killed six Nigerian soldiers guarding a PetroChina-backed pipeline, or deadly protests in Kenya over tax hikes .