The just ended Forum on China-Africa Cooperation (FOCAC) in Beijing,China showcased South-South cooperation at a time when protectionist policies have gained ground in some major economies and which risk undermining North-South partnerships. China’s pledge of another USD60 billion in additional support for African countries has fueled debate on the sustainability of China’s financial and trading relationship with Africa.
Meanwhile, the African Development Bank has welcomed China’s cooperation, arguing that China is rapidly changing its investment stance and moving towards a private sector model of financing. According to the Bank, the new financing will focus on industrial promotion, infrastructure connectivity, trade facilitation, green development, capacity building, health care and people-centred initiatives as well as peace and security initiatives.
The new funding includes USD15 billion in grants and interest-free loans; USD20 billion in credit lines; USD10 billion for development financing and USD5 billion to finance imports from Africa. Additionally, Chinese companies will be encouraged to invest a minimum of USD10 billion in Africa through to 2021.