China rolls out a fresh $60B budget for Africa, with a splash of debt relief
In a blockbuster announcement at Beijing’s Great Hall of the People, President Xi Jinping waved another $60 billion (S$82.4 billion) of help toward Africa. The package isn’t a one‑liner; it’s a multi‑layered dough that includes aid, interest‑free loans, a credit line and a handful of special funds. Think of it as a giant financial smoothie made to taste good for both sides.
Key Monetary Moves
- $15 billion – direct aid, interest‑free loans and concessional loans (like a no‑interest bean‑bag).
- $20 billion – a credit line that opens up borrowing faster than a vending machine.
- $10 billion – a special fund earmarked for China‑Africa development projects.
- $5 billion – a special fund devoted to imports from African nations.
- Chinese firms are nudged to invest at least $10 billion in Africa over the next three years.
Debt? We wrote it away!
For poorer African countries and even small island states, any interest‑free loan due by 2018 gets wiped clean. It’s a debt‑relief move that speaks to Xi’s message: “No booming money for vanity projects, just real, feels‑good infrastructure.”
Green and “Green” Development
China plans to roll out 50 projects aimed at environmental protection, climate change mitigation, desertification control, and wildlife preservation. Think solar farms in the Sahara and new green corridors linking shared ecosystems.
Security and Peace Pledges
In a bid to win hearts, Xi hinted at setting up a peace and security fund and a related forum—plus continuing free military assistance for the African Union. No details yet, but the tone was reassurance.
History Check: The $60 billion First Promise
Xi’s $60 billion perk wasn’t a one‑off. Three years ago, at a summit in South Africa, he pledged the same amount with a clearer focus on shared infrastructure and economic expansion. Since then, China has loaned roughly $125 billion to the continent (if you can find the source, more on that). The Belt and Road Initiative adds another $126 billion to the mix, aiming to tie China to Africa through a grand network of roads, railways and ports.
Critics? They’re still sour about China
Western media and some global voices claim China is chasing raw resources for its own boom, with weak environmental safeguards and heavy reliance on Chinese labor. Chinese officials shout back: “Africans know best. Just build with us, not at us.” East Eurasian media’s recent editorial in the Global Times even raves that outside critics might be hiding behind bitter trade quotas.
Who’s in the Room?
- South Africa’s Cyril Ramaphosa
- Egypt’s Abdel Fattah al‑Sisi
- Zambia’s Edgar Lungu
- Gabon’s Ali Bongo
- Sudan’s Omar al‑Bashir – the long‑time leader under ICC scrutiny for Darfur atrocities.
- And many other African states, with the only one absent being eSwatini.
With this biggest splash of financial generosity, Xi is positioning China as a partner that can provide tangible development “that people on the continent can see and touch.” The big question remains: will the 2025 policy chants be delivered, or will the funds get lost in bureaucracy? The headlines will tell, but for now, the monetary picture is brighter than ever.
