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.
China pledged:

  • 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”.

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Deborah Brautigam © 2018

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