By Laurie Chen and Joe Cash
Summary
Xi pledges billions in additional funding for Africa.
pledges three times as many infrastructure projects as at the previous summit
UN chief issues a societal unrest warning due to insufficient debt relief
delegates approve the China-African Relations Action Plan to 2027.
The plan is to create an agency that rates Africa.
Sept. 5, Beijing (Reuters) – On Thursday, President Xi Jinping promised to increase China’s assistance to debt-ridden Africa, including funding of approximately $51 billion over three years, support for further infrastructure projects, and the creation of a minimal
China’s Expanding Influence through Strategic Financial Aid
Speaking to delegates from over 50 African countries gathering in Beijing for the three-yearly Forum on China-Africa collaboration Summit, Xi declared that China was prepared to increase its collaboration with Africa in the areas of industry, agriculture, infrastructure, commerce, and investment.
The populations of China and Africa make up one-third of the global population. Global modernization cannot exist without our modernization, according to Xi.
China, the largest bilateral lender in the world, pledged to fund three times as many infrastructure projects in resource-rich Africa, even in light of Xi’s declared preference for “small and beautiful” programs that revolve around selling cutting-edge and environmentally friendly technologies, in which Chinese companies have made significant investments.
Expanding Influence through Strategic Financial Aid
Over the course of three years, the Chinese premier promised a significant cash package totaling 360 billion yuan ($50.70 billion). It was made clear that at least 70 billion of this will come from new capital investments from Chinese businesses, with the remaining 210 billion going through credit facilities.
A smaller portion of the aid package would go toward supporting the armed forces and other various projects.
At the 2021 China-Africa meeting in Dakar, China committed to investing a minimum of $10 billion and extending a corresponding amount in loans. Notably, the yuan will be used as the unit of account for this fresh wave of financial assistance, indicating a possible attempt to hasten the adoption of the Chinese currency worldwide.
