China Commits to Investment in Impoverished Sierra Leone
Chinese President Xi Jinping has pledged to encourage Chinese companies to invest in Sierra Leone, a country rich in minerals but facing economic challenges. During a meeting with Sierra Leone President Julius Maada Bio in Beijing, Xi emphasized the longstanding cooperation between China and African countries, stating that its relations with Sierra Leone serve as a model for unity and cooperation. President Bio, accompanied by his finance and mining ministers, seeks to attract more Chinese firms to invest in Sierra Leone and secure commitments to upgrade its infrastructure.
China’s engagement with African nations is expected to intensify in 2024 following the easing of stringent COVID-19 restrictions and the reopening of borders. China has been strengthening diplomatic ties with various African countries, including Ethiopia, Zambia, Benin, the Democratic Republic of the Congo, and Gabon, aiming to deepen economic and political connections. This comes as China seeks to enhance its geopolitical influence, particularly in light of the United States’ efforts to strengthen its ties with African nations.
President Xi assured President Bio that China would support Africa’s initiatives to industrialize and modernize its agricultural sector. Chinese firms have invested $6.4 billion in Sierra Leone since 2010, primarily in the metals sector. In December, Sierra Leone signed an agreement with China Road and Bridge Corporation to build an 8-km bridge connecting the capital, Freetown, to the main airport, with an estimated cost of $1.5 billion.
While Sierra Leone has struggled to convince foreign lenders of its ability to service debts, it has garnered support from China for various projects. According to International Monetary Fund data, Freetown currently owes Beijing approximately $78 million, constituting 2.5% of its public debt. This debt surpasses amounts owed to other countries, including South Korea ($50 million) and India ($28 million).
China’s commitment to deepening ties with Sierra Leone reflects its broader African strategy, emphasizing economic cooperation and infrastructure development. As Sierra Leone aims to attract further Chinese investments, this collaboration is poised to significantly shape the country’s economic trajectory and strengthen bilateral relations between China and African nations.
