- Chinese President Xi Jinping, speaking at the eighth ministerial conference of the Forum on China-Africa Cooperation (FOCAC) in Senegal, announced a $40 billion investment in African countries over the next three years.
- This represents a 33.33% reduction compared to the $60 billion commitment China made to the continent during the last two FOCAC summits.
Chinese President Xi Jinping, speaking at the eighth ministerial conference of the Forum on China-Africa Cooperation (FOCAC) in Senegal, announced a $40 billion investment in African countries over the next three years. This represents a 33.33% reduction compared to the $60 billion commitment China made to the continent during the last two FOCAC summits. The Asian economy also signaled a reduction in loans.
Over the past two decades, China has become the largest creditor for many African countries. According to reports, African countries received 42% of all Chinese official development assistance between 2000 and 2017. Economists suggest that reduced funding for Africa could be a sign that China is reconsidering its financial commitment due to diminishing returns. Experts also believe that China may adopt a more selective approach regarding major spending in Africa.
The proposed decrease in cash flows in terms of credit lines, investment, and trade financing is attributed to the growing debt of African countries, exacerbated by the economic fallout from the pandemic.
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