Chinese President Xi Jinping appears to be banking on the private sector to drive the next phase of China-Africa cooperation as China’s policy banks take a cautious approach to lending.
Speaking via a video link from Beijing during the Forum on China-Africa Cooperation (FOCAC) on Monday, Xi outlined nine initiatives China planned to implement in the next three years, most of them relating to providing coronavirus vaccines, growing trade and encouraging private Chinese companies to invest in Africa.
In a clear sign that the private sectors of both sides would play a bigger role in the China-Africa relationship in the next three years, Xi pledged US$30 billion for trade finance to grow imports from Africa, provide credit facility to African financial institutions to lend to small and medium enterprises in African countries and would share part of its International Monetary Fund’s special drawing rights (SDR) with African countries.
China would also encourage Chinese firms to invest a further US$10 billion in Africa.
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