The aim of the new deal is to foster economic opportunities by offering zero-tariff treatment to Least Developed Countries in Africa. (Image source: Republic of Kenya)
Chinese president Xi Jinping recently announced a 10-point partnership action plan for Africa for the next three years
During the opening of the ninth Forum on China-Africa Cooperation Summit in Beijing, President Xi Jinping mentioned that the 10 action plans will provide Africa with US$50bn of financial support. This will include a US$29.4bn credit line, US$11.2bn of various forms of assistance and at least US$9.8bn of investment in Africa by Chinese companies. Additionally, China will also encourage and support Africa in issuing Panda Bonds in China to enhance results-oriented cooperation.
President Xi said modernisation should put people first and strive to reduce poverty, provide jobs and foster inclusive growth. He further emphasised the need for open, win-win modernisation, noting that China and Africa together account for one-third of the world’s population and without it, there will be no global modernisation.
He announced that China will elevate the status of African countries with diplomatic relations to a strategic level so that they join what he called 'the all-weather Chinese community'. He said the 10-point plan will be achieved through cooperation in governance, experience-sharing platforms, knowledge networks and leadership training programmes.
The aim of the new deal is to foster economic opportunities by offering zero-tariff treatment to least developed countries in Africa, expanding market access for agricultural products and establishing economic partnerships. The partnership actions also focus on industrial cooperation, enhancing digital technology and implementing connectivity projects like infrastructure development to support the Africa Continental Free Trade Area.
The partnership will not only engage in improving the health sector by supporting Africa's pharmaceutical industry, but will also extend to agriculture. Some of the plans include emergency food assistance and development, people-to-people exchanges to strengthen vocational education and cultural programmes, and green development initiatives, including clean energy and disaster mitigation projects. Furthermore, China will provide military assistance, training and conduct joint exercises to enhance cooperative security efforts with Africa.
“China is prepared to implement 30 infrastructure connectivity projects in Africa, promote high-quality Belt and Road cooperation and put in place a China-Africa network featuring land-sea links and coordinated development,” President Xi said. "We will give Africa US$140mn of grants in military assistance, provide training for 6,000 military personnel and 1,000 police and law enforcement officers from Africa, and invite 500 young African military officers to visit China."
