At the 2018 Forum for China Africa Corporation, FOCAC, Chinese President Xi Jinping has announced his government will invest over $60 billion in Africa over the next three years and cancel debt from the least developing countries that have relations with China.
FOCAC is a multilateral platform that brings together 52 African countries for cooperation, covering various aspects of protocol, trade and the economy.
President Xi Jinping, defended his government against those claiming it’s trying to colonise Africa. China will extend $60 billion of financing to Africa in the form of government assistance as well as investment and financing by financial institutions and companies.
He announced aid initiatives for the African through grants, interest-free loans, setting up special funds for development financing and another for financing imports from African.
He says the least developed countries with diplomatic relations with his government and heavily indebted from loans offered by his country don’t have to worry about paying back the money.
Xi also announced his government will continue offering military aid to the African Union.
A MORE BALANCED ECONOMIC RELATIONSHIP
South African President Ramaphosa said that Africa exports to China raw materials and China manufactures it in its factories must change. There should be a balance in the structure of trade between Africa and China. We need a win-win outcome that benefits both China and the countries of Africa.
In his speech, Ramaphosa refuted what sceptics have echoed. “We refute the view that colonialism is taking hold again in Africa as some want us to believe, our relationship with China is based on the fundamental right of African people to determine their own future.”