China offers Africa $51bn in fresh funding, promises a million jobs, Chinese investments in Africa are not pushing Africa into a “debt trap”— Ramaphosa

 President Xi Jinping pledged on Thursday to step up China’s support across debt-laden Africa with funding of nearly $51 billion over three years, backing for more infrastructure projects, and the creation of at least 1 million jobs just as South African President Cyril Ramaphosa said that he did not believe Chinese investments in Africa were pushing the continent into a “debt trap” but were instead part of a mutually beneficial relationship. Ramaphosa made the remarks on the sidelines of a China-Africa summit in Beijing, where delegates from more than 50 African nations gathered this week. “I don’t necessarily buy the notion that when China (invests), it is with an intention of, in the end, ensuring that those countries end up in a debt trap or in a debt crisis,” Ramaphosa said, when asked by reporters about China’s pledge at the summit of $51 billion in new funding for Africa.

China was ready to step up cooperation with Africa in industry, agriculture, infrastructure, trade and investment, Xi told delegates from more than 50 African nations gathered in Beijing for the three-yearly Forum on China-Africa Cooperation Summit. “China and Africa account for one-third of the world population. Without our modernisation, there will be no global modernisation,” Xi said. China, the world’s biggest bilateral lender, promised to carry out three times as many infrastructure projects across resource-rich Africa despite Xi’s avowed new preference for “small and beautiful” schemes based around selling advanced and green technologies in which Chinese firms have invested heavily. The Chinese leader committed 360 billion yuan ($50.70 billion) in financial assistance over three years, but specified that 210 billion would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies. Smaller amounts would be provided through military aid and other projects. At the 2021 China-Africa summit in Dakar, China promised at least $10 billion in investment and the same again in credit lines. This time, the financial assistance would be in yuan, in an apparent push to further internationalise the Chinese yuan.

After the opening ceremony, delegates adopted the Beijing Declaration on building “a shared future in the new era” as well as the Beijing Action Plan for 2025-2027, Chinese state media said. Xi also called for a China-Africa network of land and sea sea links and co-ordinated development, urging Chinese contractors to return to the continent now that COVID-19 curbs that disrupted its projects had been lifted. He did not mention debt in his speech, despite Beijing being many African states’ biggest bilateral lender but the Action Plan included terms for repayment postponements and called for the establishment of an African rating agency. In addition to the financial support over three years, China promised to carry out three times as many infrastructure projects across resource-rich Africa, which in recent years has become the focus of intense geopolitical competition between global powers like China, Europe and the United States. Without providing details, Ramaphosa also said South Africa had reached agreement with China on aspects of its energy security. He said South Africa could learn from China on reforming its energy sector.

“They already have done exactly what we are seeking to do. So there are lessons for us to learn from China and how to do it,” he said. South Africa has been plagued for years by rolling power blackouts that have constrained economic growth. Ramaphosa also said South Africa would look to attract China’s electric vehicle manufacturers including its largest, BYD “We had good exchanges with BYD, which has shown a great interest to come and invest in South Africa,” he said. Reuters