President Xi outlines further Chinese investment in Africa

President Xi Jinping has outlined a further US$60 billion of Chinese financing for Africa over the next three-years, and pledged to write-off debts among poorer African nations, Reuters reports.

Speaking at the Forum on China-Africa Cooperation (Focac), a triennial two-day summit in Beijing which hosts leaders from 50 African nations, President Xi said the investment would support sustainable projects and warned against funding “vanity projects.”

“China-Africa cooperation must give Chinese and African people tangible benefits and successes that can be seen, that can be felt,” he said.

The financing will concentrate on commercially viable, sustainable and green investments, President Xi added.

According to the Financial Times, the US$60 billion, which adds to US$125 billion loaned to African nations between 2006 – 2016, includes a US$5bn special fund for African imports, US$15bn in aid, interest free loans and concessional loans, a US$20bn line of credit and US$10bn in a special fund for China-Africa development.

China has come under fire in recent years in light of its heavy investment in Africa, with Beijing facing accusations of practicing debt-trap diplomacy.

China has been Africa’s largest trading partner over the last decade, but most African nations run large deficits with China. Critics claim African economies are burdening themselves with huge amounts of debt that they will be unable to pay, which will force countries to hand over strategic assets to China.  

However, China’s Vice Commerce Minister Qian Keming defended Beijing’s position. Quoted in Aljazeera, he said Africa’s debt burden was long-standing and had been made worse by both the global financial crisis and a fall in commodity prices. “When it comes to the debt problem, there really is not that much Chinese debt in Africa,” Qian said.