Beijing earmarked a total of 360 billion yuan (US$50.6 billion) - including 210 billion yuan in loans, 80 billion yuan in aid, and at least 70 billion yuan of Chinese companies' investment - to Africa over the next three years as President Xi Jinping welcomed delegations from more than 50 African nations at the three-day Forum on China-Africa Cooperation (FOCAC) in Beijing this week.
FOCAC was launched in 2000 and took on an enhanced role after the 2013 inception of Xi's Belt and Road Initiative (BRI), which aims to recreate the ancient Silk Road for the world's second largest economy and biggest bilateral lender to Africa.
Part of China's intentions of course are to use FOCAC to counter growing competition in Africa from the United States, the European Union, Japan and others.
African country leaders had arrived in China seeking investment, trade, and support industrializing their raw commodity sectors to create jobs. They are expected to be closely watching for follow-through on Beijing's wide-ranging promises in the coming years, with analysts saying fulfillment of past commitments have been difficult to track.
According to a Reuters report, China's new financial pledge is more than what Beijing promised at the last FOCAC in 2021, but below the $60 billion of 2015 and 2018, which marked the peak of lending to Africa under the BRI.
During those peak years, Beijing bankrolled the construction of roads, railways and bridges. But when funds dried up after 2019, construction projects stalled.
The new funds will go towards 30 infrastructure projects to improve trade links, China said, without going into detail.
China has become a global leader in wind and solar energy, Ballim said, controlling significant supply chains and reducing production costs.
Africa is already a key BRI region and between 2013 and 2023, Chinese companies signed contracts worth over $700 billion in Africa under the BRI, according to China's commerce ministry.
However, critics accuse the BRI of burdening countries with debt and causing environmental harm.
Kenya's Standard Gauge Railway, built with Chinese financing, is a $5 billion project that has reduced travel times, but remains incomplete, facing debt issues, corruption allegations, and environmental concerns.
China helped build a naval base and nearby port in Djibouti, raising concerns about military influence and espionage.
Mozambique's suspension bridge, the longest in Africa, cost $786 million, mostly funded by Chinese loans. Critics argue the project was overpriced.
China is increasingly investing in Africa's mining sector, including copper, cobalt, and lithium, despite occasional conflicts.
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