We finally have the long-awaited 2018 Chinese financial pledges in support of FOCAC (Forum on China-Africa cooperation). Although Chinese president Xi Jinping spun the numbers to come to $60 billion (the same as the 2015 pledges in Johannesburg), the Chinese state only seems to be putting $50 billion of its own money at stake, while encouraging Chinese companies to contribute the rest through their own investment projects.
- US$20 billion in new credit lines
- US$15 billion in foreign aid: grants, interest-free loans and concessional loans.
- US$10 billion for a special fund for development financing
- US$5 billion for a special fund for financing imports from Africa.
(These two latter funds are unlikely to be loan-based but details have yet to be released.)
Here is my quick analysis in “four facts”.
Deborah Brautigam © 2018
Courtesy by Professor Deborah Brautigam