President Xi Jinping announced on Thursday that China will significantly increase its support for debt-laden African nations, pledging nearly $51 billion in funding over the next three years. The commitment includes backing for more infrastructure projects and the creation of at least 1 million jobs, as Beijing looks to deepen its economic ties with the continent.
Addressing delegates from over 50 African nations at the triennial Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, Xi promised a renewed focus on cooperation in industry, agriculture, infrastructure, trade, and investment.
"China and Africa account for one-third of the world population. Without our modernization, there will be no global modernization," Xi told the assembled leaders, underscoring the strategic importance of Africa in China’s long-term plans.
As the world’s largest bilateral lender, China has long used its economic might to secure influence in resource-rich Africa. Xi’s latest pledge to triple the number of infrastructure projects on the continent comes despite his recent focus on more targeted "small and beautiful" projects centered on green technologies. China has heavily invested in advanced tech, a shift Xi aims to capitalize on as part of his broader development strategy.
The $51 billion commitment will see 360 billion yuan ($50.7 billion) in financial assistance, of which 210 billion yuan will come through credit lines, while at least 70 billion yuan will be invested directly by Chinese companies. A smaller portion of the aid will be dedicated to military assistance and other projects.
This represents a significant increase in support from the 2021 China-Africa summit in Dakar, where China pledged $10 billion in investment and another $10 billion in credit lines. This time, the financial aid will be denominated in yuan, a move seen as part of China's efforts to internationalize its currency and reduce reliance on the U.S. dollar.
Following Xi’s speech, the summit delegates adopted the "Beijing Declaration," which outlines a shared vision for a "new era" of China-Africa cooperation, along with the Beijing Action Plan for 2025-2027. Chinese state media reported that the declaration focused on building a "shared future," while the action plan laid out specific steps for expanding connectivity and infrastructure on the continent.
In his address, Xi also proposed a network of land and sea links between China and Africa, emphasizing the need for coordinated development. He urged Chinese contractors to return to the continent now that COVID-19 restrictions, which had disrupted many Chinese-led projects in Africa, have been lifted.
Despite the scope of China's financial commitment, Xi notably avoided direct mention of the mounting debt burdens faced by many African nations—an issue that has increasingly strained relations with Beijing, their largest bilateral creditor. However, the Beijing Action Plan included provisions for debt repayment postponements and proposed the creation of an African credit rating agency to improve transparency in future lending.
United Nations Secretary-General António Guterres, speaking at the summit, highlighted the urgent need for debt relief for African nations, warning that limited access to financial resources could lead to social unrest in the region.
African debt obligations vary widely across the continent, with China being the primary lender for many countries, such as Ethiopia, while others, like Kenya, owe substantial amounts to European nations and multilateral institutions like the World Bank, as well as private bondholders.
Building a "Shared Future"
FOCAC, which serves as the main platform for China’s engagement with the continent, lays out a three-year roadmap for cooperation with every African country except Eswatini, which maintains diplomatic ties with Taiwan.
China plans to launch 30 major infrastructure projects to improve connectivity, along with an additional 30 clean energy initiatives aimed at reducing Africa's persistent power deficit and fostering industrialization. Xi also offered Chinese expertise in nuclear technology as part of these efforts.
However, unlike at the 2021 Dakar summit, Xi did not reiterate his pledge to buy $300 billion worth of African goods, a target that has been hampered by China’s stringent regulations on sanitary and phytosanitary standards for imports. Analysts have pointed out that China’s strict plant health checks have prevented African goods from meeting Beijing’s market access standards.
Instead, Africa appears poised to receive more financial assistance from China. Last year, Chinese loans to Africa rose to $4.61 billion, the first increase since 2016.
For many African leaders, the potential for more Chinese-backed infrastructure projects is a welcome development. "I'm here to see how best we can foster our relationship with China," Princess Dugba, Sierra Leone's fisheries and marine resources minister, said on the sidelines of the summit. She noted that China is helping to build a fish harbor in her country, a project she described as "one of the first of its kind."
As China continues to expand its influence in Africa, both sides look toward a future of deepened economic integration, with Chinese funding promising to shape the continent's development for years to come.
