What to expect from China-Africa cooperation summit

China's President Xi Jinping is set to open the ninth Forum on China-Africa Cooperation (FOCAC) Summit on Thursday. The forum, which gathers leaders from 50 African nations in Beijing, is a critical event for shaping China-Africa relations over the coming years. At the summit, Xi is expected to urge African leaders to absorb more Chinese goods in exchange for pledges of loans and investment from China. The two-day forum will close on Friday after negotiations over cooperation documents that will guide China-Africa relations until 2027.

China's pitch to Africa

As the world's largest bilateral lender, China is pivoting from its previous approach of large-scale infrastructure projects and focusing on a more targeted investment strategy. Xi's new mantra of "small and beautiful projects" reflects China's intention to slim down its investment portfolio and realign relations with developing economies. Infrastructure, which was once the hallmark of China's engagement in Africa, appeared only briefly in Xi's address at the last FOCAC summit in Dakar in 2021, where he pledged to support 10 projects aimed at improving African connectivity.

This year, Xi is expected to highlight the competitiveness of China's green technologies, such as renewable energy and electric vehicles, which China has in surplus due to overcapacity. With global markets like the U.S. and Europe being increasingly saturated, China needs new buyers, and Africa could be the next frontier for its green technology exports. Additionally, China is likely to promote technology transfer schemes and initiatives to foster people-to-people exchanges between China and Africa.

China may also pledge to increase credit lines for African central banks and businesses. At the 2021 FOCAC summit, China committed $10 billion in credit lines for Africa. Further investments could come in the form of support for developing digital finance and e-payment systems, which could play a significant role in modernizing Africa's financial infrastructure.

African delegates' expectations

African leaders are coming to the summit with pressing priorities, most notably the need for faster financial solutions to address the growing debt crisis on the continent. With several African countries facing significant financial challenges, African leaders are seeking quicker access to funds and solutions that can relieve their economic stress. They also hope for new job-creating investment pledges that can spur development.

African leaders want assurances that the projects proposed during the 2021 summit in Dakar will be completed. These projects, which aimed to improve infrastructure and connectivity, remain a key focus for African leaders, who hope to see them fulfilled during the 2025-2027 period outlined in the Beijing Action Plan.

Another critical issue for African leaders is narrowing the trade deficit with China. South Africa’s president recently expressed to Xi Jinping his desire to reduce the trade imbalance, an aspiration shared by almost all African nations. Leaders are pushing for better trade terms that would allow their agricultural and natural resources exports to be more competitive in the Chinese market. A key point of discussion will be ensuring that the $300 billion worth of African goods China pledged to buy during the 2021 summit is actually purchased. However, China's stringent phytosanitary regulations currently limit African food exports from entering its market.

African leaders are also meeting with Chinese firms throughout the week to encourage them to set up manufacturing hubs in Africa. This would help Africa move its industrial sector up the value chain, providing much-needed economic diversification and job creation.

What will happen at the summit?

On Tuesday, China's foreign and commerce ministers met with African delegates at the Diaoyutai State Guesthouse in Beijing to begin discussions on two crucial documents: the action plan for 2024-2027 and a report on the implementation of agreements made at the last summit in Dakar. These documents will guide China-Africa relations over the next three years and will be finalized and signed off by the end of the summit.

African and Chinese negotiating teams have been meeting regularly since the last FOCAC summit to discuss ongoing cooperation, but this in-person summit gives presidents a chance to engage directly in the negotiations. This year's summit is especially significant as it marks the first in-person gathering since the onset of the COVID-19 pandemic. The last FOCAC summit, held in Dakar in 2021, took place largely online.

In the days leading up to the summit, over 20 African heads of state have already met with Xi in Beijing’s Great Hall of the People, as reported by Chinese state media. These bilateral meetings provide leaders with opportunities to discuss individual agreements and deepen cooperation outside the broader summit framework.

Conclusion

The 2024 FOCAC summit represents a pivotal moment for China-Africa relations. As both sides recalibrate their expectations, China is offering targeted, smaller investments while African leaders are seeking faster financing and broader market access for their exports. The summit will likely shape the direction of economic and political cooperation between China and Africa for years to come, with a focus on green technology, digital finance, and job creation, alongside ongoing infrastructure