Chinese Government has presented Nigeria and other African countries with the additional sum of $60billion United State Dollars targeted at developmental projects in the continent, just a few days after British Prime Minister Theresa May pledged £4billion to the continent that will run for the next four years.
According to a report by Reuters, the Chinese government headed by President Xi Jinping offered the $60 billion which is another sum being offered to the continent by China, since the trade partnership between Africa and China and further cementing its place as the largest bilateral financier of Infrastructure in Africa.
The report said the $60billion financing for Africa was presented on Monday by President Xi Jinping and while making the announcement, said Chinese companies will be encouraged to invest no less than $10 billion over the next three years, but he also warned against “vanity projects”.
Reuters also reported that the Chinese President, Xi Jinping promised development that people on the continent could see and touch, but that would also be green and sustainable.
The report also said that the Chinese government denied engaging in “debt trap” diplomacy, as the new fund being offered comes after a pledge of another $60 billion at the 2015 summit in South Africa.
Xi, addressing leaders at Beijing’s Great Hall of the People, said the new $60 billion will include $15 billion of aid, interest-free loans and concessional loans, a credit line of $20 billion, a $10 billion special fund for China-Africa development, and a $5 billion special fund for imports from Africa.
Chinese companies will be encouraged to invest no less than $10 billion in the continent in the next three years, he said.
“China-Africa cooperation must give Chinese and African people tangible benefits and successes that can be seen, that can be felt,” Xi said.
Chinese officials have vowed to be more cautious to ensure projects are sustainable. China defends continued lending to Africa on the grounds that the continent still needs debt-funded infrastructure development.
Speaking earlier at a business forum, Xi said China had to be careful about where money was spent.
“China’s cooperation with Africa is clearly targeted at the major bottlenecks to development. Resources for our cooperation are not to be spent on any vanity projects but in places where they count the most,” he said.
Beijing has also fended off criticism it is only interested in resource extraction to feed its own booming economy, that the projects it funds have poor environmental safeguards, and that too many of the workers for them are flown in from China rather than using African labour.
Xi told business leaders Chinese firms in Africa had to be aware of their social responsibilities and make sure their investments served the community and improved their wellbeing.
“I hope that our entrepreneurs will act to fulfil social responsibilities and respect local culture and tradition,” he said.
“I also hope you will do more in staff training and bettering lives for the local people and will put more emphasis on the environment and resources,” Xi said.