Debt relief an "urgent imperative" for Africa, says African Union chair at China-Africa summit

The chair of the African Union Commission said on Thursday debt relief was an “urgent imperative” for many African states and called for more diversity in the destination of investment.

“For many African states, debt relief is an urgent imperative to give debtor countries’ economies a vital economic breathing space,” Moussa Faki Mahamat said in his speech at the opening ceremony of the China-Africa Summit in Beijing.

Dozens of African leaders have descended on Beijing for a summit that signals China's influence in a continent that it hopes will be a key ally in pushing back against a U.S.-led global order.

Chinese President Xi Jinping proposed to the assembled leaders Thursday that relations with all African countries that have diplomatic ties with China be elevated to the “strategic” level.

He proposed ten action plans to further deepen cooperation in industry, agriculture, infrastructure and other areas and further open its market — in part by eliminating tariffs on products from most of the world's poorest countries, including 33 in Africa and provide RMB360 billion yuan (50.7 bn US dollars) of various financial support.

China has become a major player in Africa since the forum was founded in 2000. Its companies have invested heavily in mining for the resources Chinese industry needs and its development banks have made loans to build railways, roads and other infrastructure under Xi's Belt and Road program.

China has become sub-Saharan Africa’s largest bilateral trading partner but exports much more to the continent than it imports. In part to reduce its trade deficit, African leaders are seeking China's help to expand their agricultural exports and industrialize their economies.

“In this respect, I am delighted to note that our efforts are meeting China's desire to make a decisive contribution to the modernization of the global South, and therefore of Africa, for the emergence of a new, innovative development model,” said Mahamat.