Ensar Nur/TR724
This week, Beijing is hosting African leaders as part of the China-Africa Cooperation Forum. The summit, which aims to deepen relations between China and the African continent, will last for five days.
Leaders and delegations from across Africa are attending the forum, which is scheduled to run until Friday and is the largest diplomatic event held in China since the Covid-19 pandemic.
Leaders from South Africa, the Democratic Republic of the Congo, Djibouti, which hosts China’s only overseas military base, Mozambique, Senegal, Chad, Togo, Nigeria, Equatorial Guinea, Mali, and many other countries have arrived in Beijing.
Before the summit, banners were put up all over Beijing, announcing that China and the African continent are “united for a better future.”
Over the past twenty years, China has sent hundreds of thousands of workers and engineers to Africa to build large infrastructure projects. Through agreements made, China gained privileged access to Africa’s vast natural resources, especially copper, gold, and lithium.
Loans from Chinese state banks have helped finance numerous infrastructure projects (railways, ports, roads, etc.) designed to boost Africa’s growth. However, these loans have raised concerns for some countries due to the increased debt levels.
As the world’s second-largest economy, China stands out as Africa’s leading trade partner. According to Chinese official media, bilateral trade reached $167.8 billion in the first half of 2024.
Loans to Africa Decreased
According to a database compiled by Boston University, loans provided by China to African countries last year reached the highest level in five years. The main borrowing countries were Angola, Ethiopia, Egypt, Nigeria, and Kenya.
However, the loan amount, which was $4.61 billion, showed a sharp decline compared to the peak of nearly $30 billion in 2016.
Analysts believe that the current economic slowdown in China is pushing Beijing to reduce its investments in Africa.
