China Pledges Fresh $60B to Africa

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Beijing is pledging to extend new funding of $60 billion to Africa, aimed at areas from industrial enhancement to infrastructure. China also says it will wipe clean the debt for certain African countries when interest-free loans come due later this year.

President Xi Jinping made the pledge Monday during the opening ceremony of the triennial Forum on China Africa Cooperation in Beijing.

He did not say which countries would have their debt absolved, but the move appeared to be the latest effort by Beijing to deflect concerns about debt levels on the continent and the risks of “debt trap diplomacy.”

Speaking to leaders from more than 30 African countries at Beijing’s Great Hall of the People, Xi said China’s investment and engagement on the continent would continue, with no political strings attached to Beijing’s investments in Africa.

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

China has denied it is engaged in debt trap diplomacy and Chinese state media have argued that concerns raised in Western media and by politicians are nothing but sour grapes.

According to data from John Hopkins University’s China Africa Research Initiative, China has already loaned around $125 billion to the continent between 2000 and 2016. That has led to high debt risks in countries like Djibouti — where China recently opened its first overseas military base — and Zambia.

Xi did not say which countries China would extend debt relief to, but he noted they would be Africa’s least developed, heavily indebted and poor as well as small island developing countries that have diplomatic relations with China.

Xi said during the next three years and beyond, China would carry out eight major initiatives with African countries. The initiatives include infrastructure connectivity, green development, and health care, as well as peace and security.

Xi said China would set up a China-Africa peace and security fund and that a total of 50 “security assistance” programs will be carried out, such as U.N. peacekeeping missions, fighting piracy and combating terrorism.