China offers US$60 billion to Africa – AIM report

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China offers US$60 billion to Africa – AIM report

2:29 CAT | 05 Sep 2018

Chinese President Xi Jinping attends the 2018 Beijing Summit Of The Forum On China-Africa Cooperation - Round Table Conference at the Great Hall of the People in Beijing, on Sept. 4, 2018. (Lintao Zhang / Pool photo via AP)

The Chinese government on Monday announced a new financing package for Africa amounting to 60 billion US dollars, covering a variety of cooperation programmes, as well as debt forgiveness for the poorest countries on the continent.

Chinese President Xi Jinping made the announcement in Beijing at the opening of the third summit of the Forum on China-Africa Cooperation (FOCAC) at which African and Chinese leaders will, over two days, discuss their cooperation mechanisms within the existing partnership framework.

Xi said that, of the money announced, 20 billion dollars will be for lines of credit, 15 billion for soft loans, 10 billion for a special China-Africa fund for development financing, 10 billion for Chinese companies to invest in Africa, and five billion to finance African imports.

He did not put a figure on debt cancellation, but said it would cover the debt incurred by least developed countries, heavily indebted and poor countries, landlocked developing countries and small island developing countries “in the form of interest-free Chinese government loans due to mature by the end of 2018”.

Xi pledged that “China is doing everything to comply with the promises made to our African brothers”. He stressed that China follows a “five nos” policy towards Africa – that meant “no interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; no imposition of our will on African countries; no attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa”.

He hoped this approach “could apply to other countries as they deal with matters regarding Africa. For China, we are always Africa’s good friend, good partner and good brother. No one could undermine the great unity between the Chinese people and the African people”.

Instead, he told the delegations from 53 African nations that China will respect the moral values and principles of cooperation with mutual gains.

Xi claimed that China “has followed the principle of sincerity, real results, amity and good faith and the principle of pursuing the greater good and shared interests. China has stood with African countries. Together, we have worked in unity and forged ahead”.

“China believes that the sure way to boost China-Africa cooperation is for both sides to leverage their respective strength; it is for China to complement Africa’s development through its own growth, and it is for both China and Africa to pursue win-win cooperation and common development”, Xi said. “In doing so, China follows the principle of giving more and taking less, giving before taking and giving without asking for return. With open arms, we welcome African countries aboard the express train of China’s development”.

The Chinese leader promised eight major initiatives, the first of which is for industrial promotion. “We have decided to open a China-Africa economic and trade expo in China; we encourage Chinese companies to increase investment in Africa, and will build and upgrade a number of economic and trade cooperation zones in Africa”, he said. “We will support Africa in achieving general food security by 2030, work with Africa to formulate and implement a program of action to promote China-Africa cooperation on agricultural modernisation. We will implement 50 agricultural assistance programs, provide 147 million dollars of emergency humanitarian food assistance to African countries affected by natural disasters, send 500 senior agriculture experts to Africa, and train young researchers in agri-science and entrepreneurs in agri-business”.

There will also be an “infrastructure connectivity” initiative, focusing on “enhancing cooperation on energy, transport, information, telecommunications and cross-border water resources”, a trade facilitation initiative and a green development initiative.

“We have decided to undertake 50 projects for green development and ecological and environmental protection in Africa to expand exchanges and cooperation with Africa on climate change, ocean, desertification prevention and control, and wildlife protection”, Xi said.

He also promised a peace and security initiative. “China has decided to set up a China-Africa peace and security fund”, Xi announced. “China will continue to provide military aid to the AU, and will support countries in the Sahel region and those bordering the Gulf of Aden and the Gulf of Guinea in upholding security and combating terrorism in their regions”.

Source: AIM