January 25th, 2021

Amidst Covid-19, China re-strategizes to strengthen trade relations with Africa

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With an economy that has never been fantastic, most African countries no doubt, are the hardest hit by the ravaging Covid-19 pandemic. Considering the rate at which the global crisis is deteriorating, if nothing is done economically, many countries, especially within the continent of Africa, may not survive another global recession.

It was in a bid to cushion the impact of COVID-19 on China-Africa trade cooperation that the Chinese government is considering the cancellation of debt of relevant African countries. The debt cancellation is in the form of interest-free government loans that are within the framework of Forum On China Africa Cooperation (FOCAC), which is due to mature by the end of 2020.

If the idea of debt cancellation pulls through, it’s expected that the Covid-19 pandemic which has thrown the entire globe into not just health crisis but severe economic crisis, will be less felt by the relevant countries in the continent.

According to China Consul General, Chu Maoming, who made the disclosure in Lagos, Nigeria, Chinese President, Xi Jinping, announced that within the FOCAC framework, China would cancel the debt of relevant African countries that are hardest hit by the Corona Virus and are under heavy financial stress.

The announcement was contained in Xi Jinping’s keynote speech entitled, ‘Defeating COVID-19 with Solidarity and Cooperation’, delivered at an extraordinary summit, in Beijing, June 17, 2020,

Maoming revealed that President Xi was working with the global community to provide further support to the affected countries, by such means as further extending the period of debt suspension, to help them tide over the current difficulties.

In addition to the debt cancellation, Jinping who put forth series of important initiatives and proposals in his speech, stressed the need for China and Africa to stay committed to fighting COVID-19 together, enhancing China-Africa cooperation, upholding multilateralism, and taking China-Africa friendship forward.

Joint efforts in these areas will demonstrate the firm determination of the two sides to defeat COVID-19 with solidarity and cooperation, point the way forward for epidemic response and practical cooperation between China and Africa, chart the course for the future of China-Africa relations, and unleash vital and positive energy for the international community to secure an early victory against COVID-19 through solidarity and cooperation. The Summit was a unique gathering of Chinese and African leaders, and the two sides are uniting efforts against the disease.

The leaders, during the Summit, had an in-depth exchange of views and reached extensive consensus on supporting Africa’s COVID-19 response and strengthening China-Africa and international cooperation against the virus. Consequently, a joint statement which reflects the common position of China and Africa on a series of significant issues was issued. “With the warm and friendly atmosphere, the Summit turned out to be an efficient, pragmatic, productive and highly successful one. The Summit is most relevant and timely, and its important influence and far-reaching significance will be long-lasting. First, the Summit further promoted China-Africa solidarity against COVID-19. At the Summit, Chinese and African leaders agreed to step up joint efforts to combat the disease and build a China-Africa community of health for all. At the height of China’s battle against the virus, African countries offered their invaluable moral and material support. In the same spirit, China has and will continue to provide full support for African countries as they fight COVID-19, including sending supplies and medical expert teams, and speeding up the construction of the Africa CDC headquarters”, he further disclosed.

Maoming also pointed out that China pledged that once its development and deployment of COVID-19 vaccine are completed, African countries will be among the first to benefit, adding that China will also ramp up support for African countries and heavily indebted poor countries on the basis of the G20’s Debt Service Suspension Initiative.
On cushioning the impact of COVID-19 on China-Africa cooperation, Maoming said that the two sides agreed to strengthen Belt and Road cooperation and the follow-ups to the FOCAC Beijing Summit with greater priority given to collaboration on public health, economic reopening, and people’s livelihood, and to deepen cooperation in areas such as trade, connectivity and the digital economy.
“Going forward, just like President Xi said, humanity will ultimately defeat the virus, and the Chinese and African people are poised to embrace better days ahead. China will work with Africa to follow through on the outcomes of the Summit to bring more benefits to the people of both sides and the whole world”, CG Maoming stated.