Chinese President Xi Jinping has announced a commitment to create “at least” one million jobs in Africa, solidifying China’s role as a key development partner for the Global South. This pledge came during the Forum on China-Africa Cooperation (FOCAC), where Xi revealed plans to provide African nations with 360 billion yuan ($51 billion) in new financing.
Speaking to delegates from over 50 African countries in Beijing, Xi outlined that 210 billion yuan ($29.6 billion) would be distributed through credit lines, and 70 billion yuan ($9.9 billion) would come in the form of fresh investments from Chinese companies. Additional funding will be allocated for military assistance and other developmental projects.
The Chinese president emphasized that the financial aid would be offered in yuan, a move that seems aimed at promoting the global use of China’s currency. Xi also called for the creation of a China-Africa network of land and sea routes, promoting greater regional connectivity and coordinated growth.
“We have built roads, railways, schools, hospitals, industrial parks, and special economic zones together. These projects have transformed the lives and futures of countless individuals,” Xi stated, according to the Chinese state media outlet Xinhua.
China’s expanding engagement in Africa is happening as tensions rise between Beijing and Western nations like the United States. This outreach coincides with China’s economic slowdown, driven by challenges such as a protracted property market crisis and a shrinking population.
Currently, China is Africa’s largest trading partner, accounting for almost 25% of the continent’s exports, which are largely composed of minerals, fuels, and metals. Additionally, China is Africa’s biggest creditor, having lent African nations $191 billion between 2006 and 2021.
During the 2021 China-Africa summit in Dakar, China pledged $10 billion in investments and an equivalent amount in credit. Ahead of this year’s three-day forum, African leaders secured various agreements on infrastructure, agriculture, mining, and energy development.
One notable deal was announced by Kenya’s President William Ruto, who revealed plans to collaborate with China on expanding the railway system between Nairobi and Mombasa, as well as enhancing a major highway in western Kenya.
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