Xi announces US$60b of financing for Africa

China will extend a total of US$60 billion in additional financing to Africa, President Xi Jinping announced yesterday.

The financing will be provided in the form of government assistance as well as investment and financing by financial institutions and companies, Xi said in his keynote opening speech at the FOCAC summit.

The financing includes US$15 billion of grants, interest-free loans and concessional loans, US$20 billion of credit lines, the setting up of a US$10-billion special fund for development financing and a US$5-billion special fund for financing imports from Africa. 

Chinese companies are also encouraged to make at least US$10 billion of investment in Africa over the next three years.

Recalling that China has honored its 2015 promise of providing Africa with US$60 billion in funding support, the Chinese leader said that the financing has been either delivered or arranged.

The country decided to provide the funding support at the FOCAC Johannesburg summit to ensure the successful implementation of 10 China-Africa cooperation plans adopted at that summit in South Africa.

Debt exemption for some countries

China will exempt certain African countries from outstanding debts incurred in the form of interest-free Chinese government loans due by the end of 2018, Xi said.

The exemption will be granted to Africa’s least developed countries, heavily indebted and poor nations, landlocked and small-island developing countries that have diplomatic relations with China.