Beijing set to pledge billions more for Africa despite concerns over Chinese lending
President to address African nations in Beijing on Monday at the Forum on China-Africa Cooperation, with financing and his ‘Belt and Road Initiative’ on agenda
China is slated to pledge billions of dollars more in aid and loans to African nations at a key conference in Beijing on Monday, even as rising debt risks and lower-than-expected returns have slowed Chinese investment in the continent, analysts say.
In all, leaders from 53 African nations are expected to take part in next week’s Forum on China-Africa Cooperation.
In his talks with Guinea President Alpha Conde on Saturday, Chinese President Xi Jinping said relations between China and Africa were developing fast. He also urged Guinea to participate more in the “Belt and Road Initiative”, Xi’s flagship programme of infrastructure projects that span the globe.
Despite growing concerns over Chinese lending, Xi is expected to announce even more financing to Africa in his keynote address at the forum, after pledging US$60 billion in loans and grants at the last conference in 2015.
One stated goal is to “synergise” the belt and road programme, even as the initiative’s loan structure has increasingly come under fire for its potential to result in “debt-trap diplomacy”.
As Africa’s largest trading partner, China has become increasingly significant to the resource-rich continent, as it expands from trade and investment to security engagements – from its military base in Djibouti to conflict mediation in South Sudan – as well as more peacekeeping and humanitarian aid.