Chinese President Xi announces $60 billion to ‘support’ Africa

Beijing(Reuters): Chinese President Xi Jinping announced US $ 60 billion of assistance and loans for Africa at a summit in Johannesburg today, signalling China’s commitment to the continent despite a recent fall in investment.

Xi Jinping

China’s economic growth has taken a dip this year, triggering a global commodities slump and causing Beijing to slash investment in Africa by more than 40% in the first six months of 2015.
Xi said that China has decided “to provide a total of US$60 billion of funding support that includes U $ 5 billion of grants in zero interest loans (and) US$ 35 billion in preferential facility and export credit loans and concessional loans.”

In a slew of pledges at his speech opening the Forum on China-Africa Cooperation (FOCAC), he also announced drought aid for the continent. “China is greatly concerned about the poor harvest caused by El Nino in many African countries and will provide one billion renminbi yuan (US $ 156 million) worth of emergency food aid to the affected countries,” he said. The two-day FOCAC meeting is the second time China has brought together African leaders since the forum was launched in Beijing in 2000.

Since then, China’s trade with Africa has overtaken that of the traditional partners, Europe and the United States. A fall in mineral prices has hit African countries who relied on Chinese demand, with large lay-offs by mining companies in resource-rich countries such as Zambia and South Africa. “We are keen to explore cooperation with China to ensure the long term viability of African mining,” South Africa President Jacob Zuma told the summit.
“This is important in light of the declining demand for commodities.”

Xi — accompanied by his wife Peng Liyuan — landed in South Africa after a brief visit to Zimbabwe, where Chinese projects have helped prop up an economy plunged into crisis under President Robert Mugabe’s rule.

Mugabe, who addressed the summit’s opening session as chair of African Union, lavished praise on the Chinese leader.

“We say he is a god-sent person,” Mugabe said. “President Xi Jinping has made a much anticipated announcement of new measures… to inject vibrancy into that already dynamic relationship between China and Africa.
“Our detractors have sought to portray our relationship to purely commercials ties, driven by China’s desire to extract our mineral resources, (but) our relations go much deeper.”

Sudanese leader Omar al-Bashir, who is wanted by the International Criminal Court (ICC) on charges of genocide, war crimes, and crimes against humanity, was not expected to attend the Johannesburg event.
He attended an African Union summit in the city earlier this year, leading to a huge furore when South Africa declined to arrest him despite a court order.

Posted by on December 4, 2015. Filed under World. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.