China and Africa trade relationship evolves with Jinping pledges Sh6 trillion for development in Africa
China and Africa trade relationship evolves with Xi Jinping pledges Sh6 trillion for development in Africa to ensure successful implementation of these ten cooperation plans with China stepping p investment in factories manufacturing goods for export in Africa, in addition to building roads, ports and railways on a continent long seen as a major commodities source for China.
China’s President Xi Jinping says that China would provide $60 billion over three years to fund development on the continent.
Xi, who is co-chairing the Forum on China-Africa Cooperation where several African heads of state were attending, outlined a broad ten-point development plan driven by the Asian economic giant, saying he wanted to build a relationship of equals.
“To ensure the successful implementation of these ten cooperation plans, China decides to provide a total of $60 billion of funding support,” Xi highlighted.
Despite its own slowing economy, Xi said China would step up investment in factories manufacturing goods for export in Africa, in addition to building roads, ports and railways on a continent long seen as a major commodities source for China.
China would cancel existing debts with zero interest loans for least developed countries that mature by end 2015, he said.
South Africa’s President Jacob Zuma says South Africa, China sign deals worth $6.5 bln that will strengthen its cooperation with Africa in the fight against violent extremism and would not interfere with the political choices of countries in the continent, Xi said.
“China will implement ten cooperation plans with Africa in the next three years,” Xi said. “These plans (are) aimed at addressing three issues holding back Africa’s development, namely inadequate infrastructure, lack of professional and skilled personnel and funding shortage.” Africans broadly see China as a healthy counterbalance to Western influence though Western governments charge China of turning a blind eye to conflicts and rights abuses on the continent as they pursue trade and aid policies there.
Sino-African relations span finance, aid, health and education co-operation and trade. Most of these are not easily measurable, but those that are in particular trade, investment and finance show signs of weakening.
Reduced external demand and lower commodity prices caused a 13% contraction in Chinese imports in the 12 months to October 2015 over the same period a year earlier. By comparison, the value of imports from Africa over the period fell 32 %.
It is to be noted that China is Africa’s main export market and also its largest source of imports. After 15 years of closer trade ties, China accounts for about 20% of imports in Sub-Saharan Africa and about 15% of its exports. But in the past year the share of exports to China has started to decline while the growth of Chinese imports has been accelerating.