As the ninth Forum on China-Africa Co-operation Summit approaches, China is set to encourage African nations to import more of its goods. The focus will be on green technologies like electric vehicles (EVs) and solar panels, in exchange for increased loans and investments. This push comes as Western countries prepare to impose restrictions on Chinese exports.
African Leaders Seek Assurances and Progress
The 50 African nations attending the summit in Beijing will be looking for updates on China’s pledge from 2021. The pledge was to purchase $300 billion worth of goods and provide progress reports on ongoing Chinese-funded infrastructure projects. One such project is the East African railway.
“The prize is going to go to those countries who have carefully studied the changes in China,” said Eric Olander, co-founder of the China-Global South Project. He added that these countries should “align their proposals with China’s new slimmed-down priorities.”
China Shifts Focus to Green Technologies
China, the continent’s largest lender, investor, and trade partner, is moving away from funding large-scale projects in Africa. Instead, it is focusing on selling advanced and green technologies. With Western curbs on Chinese exports looming, Beijing’s top priority is to find buyers for its EVs and solar panels. It also aims to establish overseas production bases for emerging markets.
China has already begun adjusting the conditions of its loans to Africa, allocating more funds for solar farms, EV plants, and 5G Wi-Fi facilities. At the same time, it is reducing investments in bridges, ports, and railways. In 2022, China offered 13 loans totaling $4.2 billion to eight African states and two regional banks. Approximately $500 million was designated for hydropower and solar projects.
Geopolitical Competition and Economic Opportunities
As President Xi Jinping prepares to open the summit, he is expected to pitch the benefits of partnering with China’s growing green energy industry. This pitch will be directed to leaders from Gambia, Kenya, Nigeria, South Africa, and Zimbabwe. The United States, Britain, Italy, Russia, and South Korea have also recently hosted Africa summits. They recognize the potential of the region’s young population and its 54 U.N. seats.
“There is no other development partner that does that much,” said Hannah Ryder, founder of Development Reimagined, an African-owned consultancy. “But are African leaders able to push China to really dig in so that the balance of the ‘win’ is way more towards the African side?”
Balancing Trade, Funding, and Security Concerns
China is keen to discuss increasing trade and access to minerals such as copper, cobalt, and lithium. These minerals are found in countries like Botswana, Namibia, and Zimbabwe. However, it may be cautious about making further funding commitments. This is due to debt restructuring bids in economies like Chad, Ethiopia, Ghana, and Zambia since the 2021 summit.
“We are likely to see a continued prudence in terms of financing mega projects,” said Lina Benabdallah of the Centre for African Studies at Harvard University. She added that Beijing would push for technology transfers instead.
Security concerns may also dampen China’s enthusiasm to lend. One example is the recent conflict between Niger and Benin that resulted in the deaths of six Nigerien soldiers. These soldiers were guarding a PetroChina-backed pipeline. Additionally, the deadly protests in Kenya over tax hikes could be a factor in China’s decision-making process.
Read more: China’s Hydrogen Tech Supports Paris Olympics’ Carbon Goals
