NAIROBI\/BEIJING
\nChina stopped short of providing the debt relief sought by many African countries this week, but pledged 360 billion yuan ($50.7 billion) over three years in credit lines and investments.
\nThe Forum for China-Africa Cooperation (FOCAC) launched in 2000 took on an enhanced role after the 2013 inception of President Xi Jinping\u2019s Belt and Road Initiative (BRI), which aims to recreate the ancient Silk Road for the world\u2019s second largest economy and biggest bilateral lender to Africa.
\n\u201cChina is moving back on to the front foot in terms of overseas deployment of capital in the emerging markets,\u201d said Tellimer\u2019s Hasnain Malik, while adding it was not yet at pre-COVID levels.
\nChina has also sought to use FOCAC to counter growing competition in Africa from the United States, the European Union, Japan and others.
\nIn Beijing, diplomats and delegates from around the world mingled in the Great Hall of the People in Tiananmen Square as leaders from more than 50 African countries and Chinese officials led by Xi gathered for a group photo.
\nThe new financial pledge is more than what Beijing promised at the last FOCAC in 2021, but below the $60 billion of 2015 and 2018, which marked the peak of lending to Africa under the Belt and Road Initiative.
\nDuring those peak years, Beijing bankrolled the construction of roads, railways and bridges. But a drying up of funds since 2019 has left Africa with stalled construction projects.
\nThe new funds will go towards 30 infrastructure projects to improve trade links, China said, without giving details.
\nThe 54-nation continent of more than 1 billion people has an annual infrastructure funding deficit estimated at $100 billion, and needs transport links to make a new giant pan-African trade bloc (AfCFTA) a reality.
\nBeijing has in recent years cut funding for such projects as it shifted focus to \u201csmall and beautiful\u201d projects, mainly due to its own domestic economic pressures and an increase in debt risks among African countries.
\nAsked how the new commitments fit into China\u2019s current cautious overseas lending strategy, a foreign ministry spokesperson said there was no contradiction.
\n\u201cThe cooperation between China and African countries, including the specific implementation of projects, is discussed and determined by both sides,\u201d Mao Ning, a foreign ministry spokesperson told a regular news conference on Friday.
\nCURRENCY SWAPS
\nChina also said it will launch 30 clean energy projects in Africa, offer co-operation on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.
\n\u201cThe outcomes of the FOCAC summit signal an impetus for green projects and especially for renewable energy installations,\u201d said Goolam Ballim, head of research at South Africa\u2019s Standard Bank.
\nChina has become a global leader in wind and solar energy, Ballim said, controlling significant supply chains and reducing production costs.
\nOthers were sceptical.
\n\u201cThe issue is not so much about the size of the investments, it\u2019s been about the lack of transparency around the terms of the debt,\u201d said Trang Nguyen, global head of emerging markets credit strategy at French bank BNP Paribas.
\nSuccess was less clear-cut for countries owing a large share of their debt to China, which made no express offer of assistance to those struggling with repayments.
\nBeijing instead urged other creditors \u201cto participate in the handling and restructuring of African countries\u2019 debts under the principle of joint actions and fair burden-sharing\u201d.
\nAfrican leaders hoping to bask in large deals for their countries had to settle for less splashy announcements.
\nEthiopia and Mauritius announced new currency swap lines with China\u2019s central bank. Kenya said it made progress on talks to reopen the lending taps for key projects like its modern railway to link the region.
\nStill, there was optimism from some, as they welcomed China\u2019s increased commitments to Africa\u2019s security, humanitarian challenges and other non-financial affairs.
\n\u201cAfter nearly 70 years of hard work, China-Africa relations are at their best in history,\u201d Tanzania\u2019s President Samia Suluhu said on her X account.<\/p>\n","protected":false},"excerpt":{"rendered":"
NAIROBI\/BEIJING China stopped short of providing the debt relief sought by many African countries this week, but pledged 360 billion yuan ($50.7 billion) over three years in credit lines and investments. The Forum for China-Africa Cooperation (FOCAC) launched in 2000 took on an enhanced role after the 2013 inception of President Xi Jinping\u2019s Belt and […]<\/p>\n","protected":false},"author":2,"featured_media":429925,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-429913","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n