China sets $15 billion of investments including construction of a metallurgical complex and loans to state companies to Africa as it continues to build stronger ties to various African nations despite an ongoing trade war with the U.S.
This economic development can be construed by the recent visit of Chinese President Xi Jinping to four African nations, following the BRICS Summit last week which was hosted by South Africa.
"Given how little the leaders of the Euro-American world visit Africa, this is significant in and of itself," said Ross Anthony, director of the Centre for Chinese Studies at the Stellenbosch University based in South Africa. "This gives African states a sense of how important China views them, given its importance on the world stage."
Chinese President Xi has visited Senegal, Rwanda, South Africa and Mauritius as he pushed for his flagship investment and infrastructure project "Belt and Road Initiative."
In his visit to Senegal, Chinese President Xi has signed agreements on belt and road projects with Senegalese President Macky Sall. The deals with Senegal will enable the expansion of its belt-and-road plan to the Atlantic Coast. Under this dealing, China will invest billions worth of road, ports and other infrastructure projects so that China can be further linked to other countries in the world.
China and Rwanda also signed fifteen different deals as Rwanda President Paul Kagame and Chinese President Xi met last week. One of its agreements is that China will provide a US$126-million loan for the various road projects of Rwanda. Also, Chinese President Xi encouraged Chinese businessmen and companies to invest businesses in the Central and East Africa.
Rwanda is one of the world's poorest countries. It is now trying to uplift its economy and the welfare of its citizens 24 years after it was hit by a dreadful genocide.
Chinese President Xi said that despite distance and difference in terms of sizes, culture, and system the Chinese and African people are enjoying the traditional friendship of the two countries. He also added that China and Africa both experienced sufferings in the past, but they survived as well. These are the reasons why they cherish the economic development, national stability, and the ethnic unity. Thus, they both take pride in what they accomplished.
In his visit to South Africa, Chinese President Xi promised a US$2.5-billion loan to South Africa's state-owned power institution Eskom which is now being faced with adversities. The loan will come from the China Development Bank. In total, China will put a US$14.7-billion worth of investments to South Africa.
Economic and political analysts surmised that China's multi-billion pledges for its trading system have further strengthened China's influence and link to the African region - a complete opposite to the way U.S. President Donald Trump's dealings with the African countries.
