At Africa summit, China elevates ties with Libya, invests $14M in Egypt
The Sino-Libyan pact was announced Wednesday by Chinese President Xi Jinping and President of the Libyan Presidency Council Mohamed al-Menfi at the FOCAC summit in Beijing.
At the 2024 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this week, the Chinese government made a host of financial and political commitments to North Africa, including a new strategic partnership with Libya and a $14 billion investment in Egypt.
Leaders of more than 50 African countries gathered for the summit, which is held every three years, to speak on topics including climate, infrastructure, security and debt. Several African countries face debt crises, and China is the world’s biggest bilateral lender and Africa's largest trading partner, with a sprawling investment footprint across the continent. The event, running Tuesday through Thursday, marks one of China’s largest diplomatic events in recent years.
The Sino-Libyan pact was announced Wednesday by Chinese President Xi Jinping and President of the Libyan Presidency Council Mohamed al-Menfi at the summit.
Xi said that China supported Libya’s stable development and deepening bilateral cooperation with the North African country, the Xinhua news agency reported.
Xi added that China backed Libya in rebuilding its economy and improving its citizens’ livelihoods, and he hoped that the country creates a sound business environment for Chinese companies.
The agency reported Menfi as saying that Libya was willing to strengthen economic, trade and investment cooperation with China under the frameworks of the Belt and Road Initiative and FOCAC. Libya welcomes Chinese businesses to participate in the country’s economic reconstruction, he added.
Speaking at the forum on Thursday, Xi said China would provide African countries with 360 billion yuan ($51 billion) in financing and support 30 infrastructure projects to boost connectivity across the continent. Along with that, the Chinese leader pledged at least $70 billion in new investment in Africa by Chinese firms.
"China and Africa account for one-third of the world population. Without our modernization, there will be no global modernization," Xi said.
Egypt investment
On Thursday, China announced a $14 million injection into North Africa’s largest economy, Egypt, to invest in joint projects between the two countries.
Prime Minister Mostafa Madbouly and Zhao Leji, chairman of the Standing Committee of the National People's Congress of China, revealed the investment during their meeting on the second day of the summit.
Madbouly heralded China for its investment in construction and urban development in his country, Egypt Today reported.
The presidents of both countries have pledged to deepen cooperation over the next five years, and in July, Egypt signed three memorandums of understanding with the Chinese National Development and Reform Commission and the China International Development Cooperation Agency.
Chinese foreign direct investment in Egypt has been on the rise too, rising to $956.7 million for the 2022-23 financial year from $563.4 million the previous financial year.
Tunisia, an energy partner
Tunisian Prime Minister Kamel Maddouri, who attended the summit, said on Wednesday that his country offers all “necessary structures and guarantees” to Chinese companies, especially those in renewable energy, the Agenzia Nova press agency reported.
Earlier that day, Maddouri met with Li Lina, president of the China Energy Engineering Corporation, where the two women spoke about collaboration between the firm and the Tunisian government in green energy.
According to a press release from the Presidency of the Government of Tunis, the two spoke about the Kairouan solar power station in northern Tunisia, which will have a capacity of 100 megawatts. Construction of the site began in September last year and is now nearing completion, the statement said.
Western Sahara issue
Notably, China did not invite the Polisario Front and the Sahrawi Arab Democratic Republic to the event, a setback for the Western Sahara independence movement and what could be construed as an endorsement of Morocco’s territorial integrity. Morocco claims the West Sahara as its own land, though neighboring Algeria, along with the Polisario Front and SADR, say it is independent of Moroccan control.
Moroccan Prime Minister Aziz Akhannouch and Foreign Minister Nasser Bourita attended FOCAC. The Moroccan minister delegate to the prime minister responsible for investment, implementation and evaluation of public policies, Mohcine Jazouli; the ambassador of the Kingdom of Morocco in Beijing, Abdelkader El Ansari; and the president of the General Confederation of Moroccan Enterprises, Chakib Alj, also attended.
