China Commits $50 Billion in Support to Africa at Forum on China-Africa Cooperation Summit
Beijing — Chinese President Xi Jinping announced on Thursday that China will provide 360 billion yuan (over $50 billion) in financial support to Africa over the next three years. This commitment was made during the ninth Forum on China-Africa Cooperation Summit, which is poised to set the stage for China-Africa relations in the coming years.
Speaking on the summit’s second day, Xi stated, “The China-Africa relationship is now at its best in history,” according to an official translation of his Mandarin-language remarks. He emphasized China’s readiness to deepen cooperation with Africa across various sectors including industry, agriculture, infrastructure, trade, and investment, urging both sides to advance modernization in an “open and win-win” manner.
The high-profile summit, attended by leaders from over 50 African nations, including South Africa’s President Cyril Ramaphosa and Kenya’s President William Ruto, is a pivotal event as China seeks to recalibrate its economic ties with Africa amid geopolitical tensions with the West. The summit is expected to yield new policies and cooperation agreements, including key documents such as Beijing’s three-year action plan.
Delegates are anticipated to negotiate trade and investment deals, and address Africa’s growing debt burdens with China. The summit also highlights China’s push to expand its green tech exports, such as electric vehicles and solar panels, to Africa—products facing hefty tariffs in Western markets.
This summit represents China’s largest diplomatic event in recent years, as noted by Chinese Vice Foreign Minister Chen Xiaodong on August 23. However, the task may be challenging for Xi, particularly as China did not fulfill a previous pledge made at the 2021 Forum to purchase $300 billion worth of African goods.
China has been Africa’s largest trading partner since surpassing the U.S. in 2009. Trade between the two regions has surged from less than 100 billion yuan in 2000 to 1.98 trillion yuan in 2023, reflecting an annual growth rate of 17.2%, according to data from China Customs. In the first seven months of this year alone, China-Africa trade reached a record 1.19 trillion yuan.
China is also a major creditor to many African nations. Since 2000, it has invested over $180 billion in infrastructure projects, including bridges, rail lines, and hydropower plants. In 2023, Chinese lenders extended a record $4.61 billion in loans to Africa.
Despite these investments, China’s lending schemes, particularly through the Belt and Road Initiative, have faced criticism for contributing to high debt levels in low- and middle-income African countries. This has led to some nations struggling to service their debt or facing default.
In addition to the 360 billion yuan in financial support, Xi announced that China will “encourage and support” Africa in issuing panda bonds in China. The support will be allocated as follows: 210 billion yuan in credit facilities, 80 billion yuan in various forms of assistance, and 70 billion yuan in investments by Chinese firms.
“A friend is someone you share the path with,” Xi said, quoting an African proverb, and emphasized that China and Africa should be on a “shared path” toward modernization. He affirmed China’s unwavering commitment to solidarity and cooperation with Africa, regardless of changes in the international landscape, as noted by Vice Foreign Minister Chen in the briefing.
