Key Takeaways
- Financial Commitment: China pledged $50 billion in financial support over the next three years, signalling a shift from large-scale infrastructure projects to more diversified investments in green energy, industry, and digital infrastructure.
- Green Energy Transition: A key outcome was China’s commitment to 30 clean energy projects and the development of Africa’s electric vehicle industry, reflecting a focus on sustainability and global climate goals.
- Debt and Economic Challenges: Concerns over African debt burdens remain critical, with some measures introduced for debt relief, but many questions regarding the long-term sustainability of Chinese loans remain.
- Geopolitical Implications: China positioned itself as a leader in the Global South, offering a non-interference approach that contrasts with Western models. However, competition for influence in Africa is intensifying, particularly from the U.S. and EU.
Keywords: Sino-African Relations; FOCAC; China; Africa; Debt Diplomacy; Digitisation
Introduction
The 2024 Forum on China-Africa Cooperation (FOCAC) Summit, held in Beijing from September 4-6, represented a critical moment in China-Africa relations. As global geopolitical and economic tensions rise, Africa’s importance in China’s broader ambitions has become increasingly pronounced. President Xi Jinping’s address to the summit reaffirmed China’s role as a vital partner in African development, promising financial support, job creation, and a strong focus on the green energy transition. Unlike past summits, the 2024 edition took place under new economic and political pressures, including growing competition from Western powers and concerns about African debt.
In this paper, we will critically analyse the key outcomes of the 2024 FOCAC summit, exploring China’s evolving role in Africa, the challenges surrounding debt, and the shift towards sustainable development. This analysis will shed light on both the opportunities and challenges Africa faces as it navigates its partnership with China and other global powers.
Historical Context of China-Africa Relations
The FOCAC, founded in 2000, is a key platform for fostering diplomatic and economic ties between China and Africa. Over the past two decades, China has invested heavily in African infrastructure, trade, and resource extraction. FOCAC has facilitated these engagements, with the Belt and Road Initiative (BRI) playing a central role. By 2018, China had become Africa’s largest trading partner, with trade volumes exceeding $200 billion.
However, concerns about debt sustainability grew over time, especially following the COVID-19 pandemic, which exacerbated the vulnerabilities of African economies. China’s earlier focus on large-scale infrastructure projects, such as railways and highways, became a point of contention, as many African countries struggled to service their loans. Despite these challenges, China remained a dominant player in Africa, with many leaders continuing to view Beijing as a reliable partner, particularly in sectors where Western aid had been limited.
The 2024 FOCAC summit marked a shift in China’s approach, reflecting both changing global economic realities and Africa’s demand for more sustainable forms of development. The summit emphasised smaller, more targeted projects, focusing on green energy and technological innovation, signalling a new phase in the China-Africa partnership.
Key Outcomes of the 2024 FOCAC Summit
The 2024 FOCAC Summit yielded significant outcomes that reflect the evolving nature of China-Africa relations. These outcomes span key areas, including economic support, infrastructure development, employment generation, and a notable shift toward green energy. Each of these outcomes highlights China’s strategic interest in maintaining and deepening its role as Africa’s premier development partner while addressing both global economic pressures and local African needs.
Economic Support and Developmental Aid
One of the most striking announcements at the 2024 FOCAC summit was China’s pledge to provide $50 billion in financial support to Africa over the next three years. This commitment underscores Beijing’s continued focus on fostering economic ties with the continent. However, unlike previous years where Chinese investments concentrated heavily on large-scale infrastructure projects, the 2024 summit signalled a shift in focus toward more diversified investments.
The financial package is targeted at key sectors such as industry, agriculture, infrastructure, and trade. However, the pivot toward green energy was a defining feature of the summit, with China emphasising its desire to invest in Africa’s green transition. This included plans to launch 30 clean energy projects, alongside initiatives aimed at promoting electric vehicles, solar energy, and other green technologies. These initiatives aim to address both Africa’s energy needs and the global push for sustainability, while also positioning China as a leader in the green technology sector.
In terms of trade, China remains committed to enhancing market access for African goods. While there were fewer specifics regarding new trade deals at this summit, the emphasis on supporting Africa’s industrialisation—particularly in adding value to its raw materials—aligns with Africa’s own goals of diversifying away from primary commodity exports. Moreover, China’s announcement of duty-free access for products from the least developed African countries further solidifies its role in enhancing Africa’s trade capacity.
Infrastructure and Industrialization
Despite a reduced emphasis on large-scale infrastructure compared to past summits, infrastructure remains a core element of China’s engagement with Africa. President Xi Jinping announced 30 new infrastructure connectivity projects across unspecified African countries. However, in contrast to the monumental projects of previous FOCAC meetings, these new initiatives are expected to focus on smaller, more targeted infrastructure investments, which align with China’s new approach of promoting “small yet beautiful” projects. These initiatives are designed to foster connectivity between African nations and regions, further supporting the African Union’s Agenda 2063 and the African Continental Free Trade Area (AfCFTA).
China’s support for infrastructure is closely linked to its industrialisation agenda in Africa. By improving transport and energy infrastructure, Beijing aims to lay the groundwork for industrial growth, helping African nations move up the value chain. Notably, China also continues to play a significant role in Africa’s industrialisation efforts through support for Special Economic Zones (SEZs) and industrial parks. These initiatives are expected to be key drivers of job creation and technological advancement in African economies, as the continent seeks to transition from being a supplier of raw materials to a producer of finished goods.
A noteworthy development in this area is China’s commitment to the revitalisation of key regional infrastructure, such as the Tanzania-Zambia Railway Authority line, which has long been a symbol of Sino-African cooperation. The renewed focus on transport infrastructure, coupled with investments in ports and free trade zones, highlights China’s intention to keep Africa integrated into global trade networks, with China at the centre of those networks.
Employment and Job Creation
Another key outcome of the summit was China’s pledge to create one million jobs across Africa over the next three years. Job creation has been a central theme of China’s recent engagement with the continent, reflecting both the African governments’ demands for employment opportunities and China’s desire to maintain its soft power influence across the region. The new jobs are expected to be generated primarily through investments in infrastructure, industrialisation, and green energy projects.
Industrialisation remains central to China’s employment strategy. By supporting the development of local value chains, particularly in sectors such as manufacturing and processing, China aims to help African countries reduce their dependency on raw commodity exports. The creation of Special Economic Zones, coupled with the development of industrial parks, will serve as incubators for this industrial transformation. These initiatives also align with Africa’s own economic strategies, which prioritise job creation as a means of addressing widespread unemployment and youth underemployment.
Moreover, China’s focus on green energy presents new avenues for employment. Clean energy projects, including solar panel production and electric vehicle assembly, are expected to provide both direct and indirect job opportunities. This shift not only supports Africa’s energy transition but also helps develop new sectors within its economy, contributing to long-term employment growth.
Technological Transfer and Digitalization
An emerging theme from the 2024 summit was the increasing focus on digitisation and technological transfer. China announced its support for the development of a China-Africa digital technology cooperation centre, alongside plans to facilitate Chinese businesses in undertaking 20 digital infrastructure projects across Africa. These initiatives reflect China’s broader goal of positioning itself as a leader in Africa’s digital economy.
Digital infrastructure is seen as essential for Africa’s modernization and integration into the global economy. China’s investments in this sector will support the development of critical technologies, such as 5G networks and data centres, while also promoting e-commerce and digital financial services. The FOCAC summit further emphasised the importance of digital skills training, with China committing to train thousands of African professionals in areas such as e-commerce and digital innovation. These initiatives are not only designed to boost Africa’s technological capabilities but also to create a new generation of skilled workers, enhancing the continent’s competitiveness in the global digital economy.
Debt Crisis and Economic Challenges
The issue of debt and economic sustainability emerged as a critical concern at the 2024 FOCAC summit. As African nations continue to grapple with the aftermath of the COVID-19 pandemic and a global economic slowdown, the role of Chinese loans in exacerbating debt burdens has come under scrutiny. Several African countries have found themselves in precarious financial positions, burdened by external debt that limits their fiscal capacity for future growth. While the summit focused on future cooperation, it also took place under the shadow of rising debt levels across the continent.
Debt Concerns
China has long been a key lender to African nations, providing financing for infrastructure and development projects under the BRI. However, the scale of Chinese lending has raised concerns about the sustainability of this model, particularly as several African countries face severe debt distress. In recent years, a number of African economies, including Zambia, Ethiopia, and Angola, have struggled to service their external debts, much of which is owed to Chinese lenders. Critics have argued that China’s loan practices have contributed to unsustainable debt levels, although Beijing has consistently denied any intention of engaging in “debt-trap diplomacy.”
The debt situation has been further complicated by the economic fallout from the COVID-19 pandemic, which has significantly reduced government revenues across the continent. As a result, many African nations have called for debt relief or restructuring to help alleviate their financial burdens. Although China has engaged in debt restructuring in some instances, the process has often been criticised as slow and piecemeal. At the summit, African leaders, including South Africa’s Cyril Ramaphosa, pushed back against the narrative that China intentionally saddles African countries with unmanageable debt. Ramaphosa emphasised that African countries seek partnerships, not dependency, and that China’s investments should not be viewed solely through a negative lens.
China’s Response to Debt Criticism
While the 2024 FOCAC summit made no explicit mention of debt relief in President Xi Jinping’s speeches, the final Beijing Action Plan did address the issue indirectly. The action plan included provisions for the postponement of debt repayments for some African countries, signalling China’s willingness to provide some flexibility to debt-distressed nations. Additionally, China announced the cancellation of interest-free loans for the least developed African countries that are due by the end of 2024. However, this move was more symbolic than substantive, as interest-free loans constitute only a small portion of China’s overall lending to Africa.
Debt Relief Efforts and Their Limitations
Despite the announced measures for debt relief, there are lingering questions about whether China’s efforts are sufficient to address the scale of the debt crisis facing Africa. While the debt owed to Chinese lenders makes up a comparatively small portion of the continent’s total external debt, it still represents a significant burden for some of the most debt-distressed nations. China has been criticised for not moving quickly enough in offering comprehensive debt restructuring or forgiveness, particularly when compared to multilateral institutions like the International Monetary Fund (IMF) and World Bank, which have launched initiatives aimed at providing debt relief to low-income countries.
Furthermore, China’s reluctance to offer outright debt cancellation or participate fully in global debt relief frameworks, such as the G20’s Common Framework for Debt Treatments, has raised concerns about the long-term sustainability of its African lending practices. Analysts argue that while China’s recent moves signal a more cautious approach to lending, they do not go far enough in addressing the root causes of Africa’s debt challenges. In particular, the absence of transparency around the terms of Chinese loans has made it difficult for African countries to effectively manage their debt burdens.
A Shifting Economic Landscape
The debt crisis is occurring against the backdrop of broader economic challenges, both within China and globally. China’s own economic slowdown has diminished its ability to extend the same level of financial support to Africa as in previous years. The $50 billion in financial aid pledged at the 2024 summit, while significant, is still less robust than the levels of support offered during previous FOCAC meetings, such as the $60 billion committed at the 2018 summit.
As China’s economic priorities shift, its engagement with Africa is likely to become more selective. This includes a greater focus on projects that align with China’s strategic goals, such as green energy and digital infrastructure, which offer both economic and geopolitical benefits. For African nations, this means that while China remains a key partner, the terms of engagement may become more constrained, with fewer opportunities for large-scale borrowing. The challenge for African leaders will be to navigate this changing landscape while ensuring that their countries can still benefit from Chinese investments without falling into deeper debt distress.
Geopolitical and Strategic Implications
The 2024 FOCAC summit had significant geopolitical implications, positioning China as a leader of the Global South and a counterweight to Western influence in Africa. China’s approach emphasises mutual respect and non-interference, distinguishing it from Western powers that often tie aid to political conditions. This message resonates with many African leaders, who view China as a partner willing to invest in sectors that Western donors tend to overlook, such as infrastructure and industrialisation.
However, competition from the West has intensified, particularly from the United States and the European Union, which have launched initiatives like the Partnership for Global Infrastructure and Investment (PGII). These efforts underscore the strategic importance of Africa in a multi-polar world, where global powers vie for influence over the continent.
Strategic Cooperation in Security and Technology
The summit also underscored China’s growing involvement in African security and technological development. China pledged $280 million in military and food aid, highlighting its role in supporting Africa’s security infrastructure. China’s involvement in key regions like the Sahel and Horn of Africa reflects its broader strategy of securing influence in areas critical to both local governance and China’s investments.
In the technological domain, China’s digital infrastructure projects are aimed at embedding itself in Africa’s digital economy. The establishment of the China-Africa digital technology cooperation centre and investments in digital skills training signal China’s intention to remain a long-term partner in Africa’s modernisation.
Focus on Green Energy and Sustainability
The 2024 summit marked a significant shift towards green energy, with China committing to 30 clean energy projects across Africa. These projects are aimed at addressing Africa’s energy deficits while contributing to global efforts to combat climate change.
China’s focus on green energy also extends to supporting the development of Africa’s electric vehicle (EV) industry, with investments in EV production and infrastructure. However, the implementation of these green energy projects will require significant investment in infrastructure and technical expertise, areas where many African nations face challenges.
While China’s green initiatives are promising, they also raise concerns about the long-term environmental impact. China’s past involvement in environmentally damaging projects, such as over-fishing and mining, has strained its environmental reputation in Africa. Addressing these issues will be critical for China to position itself as a genuine partner in Africa’s sustainable development.
Implications for Europe
Europe faces increasing competition for influence in Africa, as China’s deepening economic and political ties with the continent could challenge the European Union’s strategic interests. The European Global Gateway initiative, aimed at countering China’s Belt and Road Initiative, may need to accelerate efforts to provide viable alternatives for African development. Moreover, as China strengthens its foothold in critical sectors like green energy and digital infrastructure, European businesses and governments will need to rethink their engagement strategies, focusing on sustainable partnerships and aligning with Africa’s economic diversification goals to remain competitive in the evolving geopolitical landscape.
Conclusion
The 2024 FOCAC summit highlighted the evolving nature of China-Africa relations, with a greater emphasis on sustainable development, green energy, and technological cooperation. China’s $50 billion financial commitment, alongside pledges to create one million jobs and invest in clean energy, underscores its intent to remain a key partner in Africa’s future.
However, challenges remain, particularly regarding debt sustainability and the long-term impact of Chinese investments. The shift away from large-scale infrastructure projects reflects both China’s economic slowdown and Africa’s changing development needs, but questions about the adequacy of China’s debt relief efforts persist.
Geopolitically, China’s growing influence in Africa positions it as a leader of the Global South, though competition from the West is intensifying. Looking ahead, the success of China’s engagement with Africa will depend on its ability to balance economic growth with environmental sustainability, manage debt burdens, and navigate the geopolitical competition for influence.
As Africa continues to industrialize and transition to cleaner energy, the China-Africa relationship will remain central to the continent’s engagement with the global economy.