President Xi Jinping on Friday offered US$60 billion of funding to African nations for their development and pledged to restructure their debt, a move to expand Beijing’s influence in the continent despite a decline of investment from China as its economy slows.
The funding package for the next three years would include US$5 billion in zero-interest loans and US$35 billion in preferential financing, export credit lines and concessional loans as part of a 10-point development plan, Xi told a dozen African heads of state at the Forum on China-Africa Cooperation in Johannesburg yesterday.
“The plan aims to address three issues holding back Africa’s development, namely inadequate infrastructure, lack of professional and skilled personnel and a funding shortage,” the president said.
His plan calls for China to help Africans build and operate railways, roads, airports, ports, power stations and telecommunications on the continent, which is a key supplier of commodities.
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South African President Jacob Zuma, who is co-chairing the summit with Xi, said African countries needed China’s help to process their abundant natural resources, which he said had made the continent vulnerable to exploitation in the past.
“That way what is buried in the belly of the soil will translate into benefit for the bellies of our citizens,” Zuma said.