In the first half of 2024, China was Africa’s largest trading partner in the world, with trade worth around 152 billion euros.
Some fifty African leaders met in Beijing on Thursday for the 2024 Summit of the Forum on China-Africa Cooperation.
Chinese President Xi Jinping has promised financial support of more than 360 billion yuan (45 billion euros) over the next three years, about half of which will be in the form of loans.
“China is willing to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investment”the Chinese leader said. “We stand side by side to firmly defend our legitimate rights and interests”.
Preferred business partners
In the first half of 2024, China was Africa’s largest trading partner in the world, with trade worth around 152 billion euros.
Chinese companies have invested heavily on the African continent in the exploitation of critical industrial resources – including copper, gold and lithium – and in the construction of infrastructure such as railways and roads.
African leaders, as a whole, welcome China’s aid, but are pushing for it to be more aligned with the continent’s development goals.
“As part of our industrialization drive, the private investment portfolio in Africa should expand beyond the traditional domain of mining and energy resources”says Moussa Faki Mahamat, president of the African Union Commission.
“A new characterization of relations between China and Africa”
Reflecting Expanding China-Africa relations, Xi Jinping presented ten “partnership actions”including training African politicians and future leaders, continuing to open up Chinese markets, vocational and technical training, green energy projects and 1 billion yuan (127 million euros) in grants for military assistance.
The Chinese president also announced that Beijing to soon remove tariffs on products from most of the world’s poorest countries33 of which are in Africa.
Tanzanian President Samia Suluhu Hassan, speaking on behalf of East Africa, welcomed “a new characterization of relations between China and Africa”.
From business to politics
China is the country that produces the most military professionals in Africa, and His extensive training in leadership and governance gives him additional influence over the continent’s politicssays Paul Nantulya, a China relations specialist at the Africa Center for Strategic Studies in Washington.
“Modernization is an inalienable right of all countries”Xi Jinping said. “But the Western approach has inflicted immense suffering on developing countries.”
“Since the end of World War II, Third World nations, represented by China and African countries, have gained independence and have sought to redress the historical injustices of the modernization process.”he adds.
Beijing’s challenge to the international order resonates with several African nations that feel abandoned by their Western partners.
Many African countries have openly criticized the US role in the war in Ukraine and refused to condemn Russia’s invasionadopting a non-aligned position that has led to political friction with Washington.
ADVERTISEMENT“As our history demands, South Africa will continue to pursue progressive internationalism”South African President Cyril Ramaphosa said during talks with Xi Jinping earlier this week.
“Building on the solid foundation of solidarity, we continue to provide our support to promote our interests, those of the African continent and all the countries of the South”he adds.
Chinese lending rebounds after sharp decline
According to Boston University’s Global Development Policy Center, China’s development loans to Africa have fallen sharply from their peak in 2016although they rebounded from COVID-era lows to $4.6 billion last year.
This decline is partly explained by the budgetary crises of the governments of several beneficiary countries, which are unable to repay their loans.
ADVERTISEMENTMany heavily indebted African countries cannot meet the basic needs of their populationsUN Secretary-General António Guterres said at the forum.
“This situation is unsustainable and is causing social unrest”he said, stressing the need for deep reform of what he called a “obsolete, inefficient and unfair international financial system”.
