China takes a first step in Africa

Nov 12th, 2009 9:46 AM UTC
By Pooja Gupta

Written with Mike Drachkovitch

Last weekend, Sharm el-Sheikh, Egypt hosted the 4th Forum on China-Africa Cooperation (FOCAC), a triennial summit viewed by some as the centerpiece of China’s Africa aid program. Launched in 2000, the FOCAC acts as the institutional body through which China establishes its terms of engagement with Africa.

The biggest news to come out of this year’s FOCAC summit was the announcement that China will give US $10 billion in low-interest loans to African nations over three years. China also pledged to help African countries adapt to the impacts of climate change by helping to build 100 new clean energy projects on the continent. In addition, China stated their commitment to help African countries become viable trading partners by implementing a zero-tariff policy on 95% of all goods from the poorest African countries.

This year’s summit made clear that China is indeed becoming a vital partner for African development. However, China’s engagement in African countries would be more effective if a few changes were made, namely working with other donor governments to streamline aid within existing architecture. China would also benefit by looking at South Korea’s imminent membership of the OECD Development Assistance Committee (DAC). For example, the DAC could help improve its development policy practices, making them more effective and transparent.

The $10 billion loan commitment is a good first step for China to effectively engage in Africa, as is its commitment to expand market access for African products and assist African countries adapt to the impacts of climate change. However, African countries, as well as other donor nations, would welcome further specification on exactly how China plans to assist Africa in coping with the effects of global warming. Additionally, issuing loans rather than aid raises some concerns that African countries will re-accumulate crippling debt, reversing many gains recently won through debt relief efforts.

Furthermore, although China has made clear its intention to support African development, some critics have noted that its support of oppressive regimes, such as in Guinea, is counterproductive.

Lastly, China is set to receive significant funding from the cash-strapped Global Fund for AIDS, Tuberculosis and Malaria – more than nearly any African country. This large sum has raised eyebrows of those who have admired China’s rapid economic success of late. Foregoing this assistance would send a powerful message to African countries desperately in need by freeing up scarce resources.

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