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China pledges $60 billion investment in Africa

China pledges $60 billion investment in Africa

South Africa

China’s President Xi Jinping has pledged $60 billion to African states. Most of the announced $60 billion will come in loans and export credits. While $5 billion is to arrive as grants and interest-free loans.

Jinping made the announcement recently at the China Africa Cooperation (FOCAC) held in Johannesburg.

However, little is known of how the committed $55 billion will be spent.

The event witnessed the presence of 50 African countries, the Africa Union and China.

FOCAC meeting is a collaboration between China and several African countries to convene and chart out cooperation projects and discuss China-Africa multilateral relations.

China has announced the general outline of its commitments indicating that $35 billion will go towards preferential loans, export credits, and concessional loans. Another $5 billion will go to the China-Africa Development Fund, a private equity and venture capital investment arm of the China Development Bank.

Announcements at FOCAC summit usually outline three years worth of money, but no dates were announced.

FOCAC financial goals are often reached before the end of three years and may take longer than three years to allocate all the funding.