As the China-Africa Forum for Cooperation (FOCAC) 2018 summit drew to a close, China announced a new $60 billion kitty for Africa’s development as part of a raft of new measures to strengthen Sino-Africa ties.
Here is how China’s $60 billion pie will be shared among the African countries.
The money will be channelled to projects aligned to the Chinese government’s Belt and Road Initiative covering telecommunications, construction of roads, bridges and sea ports, energy, and human capacity development.
These countries particularly include Kenya, Tanzania, Ethiopia, Djibouti and Egypt.
The funding is broken down into several parts with $15 billion being categorised as government grants, $15 billion as interest free loans and $ 20 billion of credit lines and $ 5 billion for financing imports from Africa.
According to a statement from the office of President Nana Akufo-Addo, the country has signed eight cooperation agreements with China during the 2018 China-Africa summit.
One of the deals includes a $2 billion infrastructure agreement for Ghana to improve its roads and develop railways in exchange for bauxite.
During the summit, President Xi said that China had invested a sum of $170 billion in Africa in the last 3 years.
“China and Africa can forge a stronger comprehensive and strategic partnership. China promises to engage with Africa on a principle of sincerity and real results,” said President Xi Jinping.
“China’s 1.3 billion people and Africa’s 1.2 billion want a shared future,” said the Chinese leader as he promised that no obstacle will be allowed to hold back the ‘joint march’.
The Chinese leader added that the Road and Belt Initiative-the framework within which his country seeks to grow its trade and investments in Africa, China looks at building mutually beneficial relationships with African nations driven by a desire to achieve shared prosperity for the future good and wellbeing of mankind.
He also challenged Chinese private companies to directly invest upwards of $10 billion in Africa in the next 3 years.