President Xi Jinping has offered a financial package of $60bn to Africa and also written off debts of the poor nations of the continent. China’s President offered the support at the beginning of a significant summit of African leaders in Beijing. The figure included, a credit line of $20bn, $10bn for development financing, $15bn in grants and another $5bn for purchasing imports from the continent. The President also stated that Chinese firms will be urged to invest atleast $10bn in Africa over next 3 years.
President Xi Jinping also stated that the governmental debt arising from the interest-free loans from China which are due by the end of this year will be written off for the poor and developing nations of the continent along with small island nations. President Xi said that the partnership between China and Africa must produce tangible benefits and success across all peripherals which can be felt.
China will undertake 50 projects on green development and environmental protection in Africa which will deal with climate change, wildlife protection and desertification. In addition, a peace and security fund will also be established and the military assistance to African Union will continue for free.
The new offer for fresh funds comes in the wake of a pledge which was made at the Forum on China-Africa Cooperation FOCAC in South Africa, 3 years ago.
China has given around $125 bn to the African continent in loans from 2000-2016 and the international experts are worried that the loans will bury many African nations in huge debts. The member African nations of the FOCAC have stated the talk of debt-traps has been pushed to discourage and undermine Chinese-African partnerships.