China funding aids8k8 777 Africa development

Financial assistance from China has played a crucial role in infrastructure development in Africa since the Forum on China-Africa Cooperation, or FOCAC, was established, paving the way for economic prosperity, observers said, adding that Sino-African cooperation will help address emerging challenges facing the continent such as climate change.

Lucas Engel, a data analyst for the Global China Initiative at the Boston University Global Development Policy Center in the United States, said while the volume of lending from China to Africa has decreased in the last few years, it has overall added to the vast amount of cumulative Chinese financing for development projects in Africa over the years.

Speaking at an online seminar ahead of the FOCAC summit scheduled in Beijing in September, Engel said that since the establishment of FOCAC, the Export-Import Bank of China and the China Development Bank have made great loan commitments to Africa, with the majority directed toward vital infrastructure projects in energy, transport, and information and communications technology sectors.

He said over the years, areas such as infrastructure, agriculture, energy transition, trade and economic integration have become prominent areas of engagement. He also believes that the upcoming FOCAC meeting will further reveal the extent of shifts in China's contributions to Africa's development.

Major platform

Following the establishment of FOCAC, a major cooperation platform between China and Africa, in 2000, China's economic relations with the African continent have grown and developed significantly.

Over the last two decades, China has become Africa's largest bilateral trading partner. Experts also said China has emerged as a main financial contributor to Africa, providing African countries with a new source of infrastructure, mining and energy financing.

One of the key projects financed by China is the iconic Mombasa-Nairobi Standard Gauge Railway, which links the two biggest cities in Kenya. The railway is expected to boost the country's annual economic growth by at least 1.5 percent, according to Kenyan experts.

Dianah Ngui Muchai, a research manager at Kenyan-based NGO African Economic Research Consortium, said China has become a significant partner for many African countries, with a focus on sectors such as infrastructure development, natural resources, and manufacturing, which contribute to the development of many African countries.

Looking forward, Muchai said more bilateral cooperation is expected under FOCAC that caters to the pressing needs of African countries, such as renewable energy, as Africa seeks to meet its rising energy demands and move toward sustainable energy sources.

"Given Africa's current economic challenges and energy opportunities, the next phase of China-Africa economic relations should see China playing a bigger role in contributing to African countries' low-carbon development goals," she added.