BEIJING - China has announced a Chinese Yuan 50 million ($6.9 million) economic and technical assistance to Sierra Leone.

The Asian economic giant has also cancelled a debt worth Chinese Yuan 20 million ($2.78 million)  debt cancellation.

The development was on Wednesday announced by Chinese President Xi Jinping as he held talks with Sierra Leone President Julius Maada Bio, who is on a state visit to China, in Beijing.

The meeting saw the two presidents sign bilateral co-operation documents in the fields of the Belt and Road Initiative, agriculture, economic development, and the implementation of the Global Development Initiative. Both sides issued a joint statement on deepening their comprehensive strategic cooperative partnership.

The Chinese President, according to a Wednesday statement by Sierra Leone State House, also announced food assistance of 1,500 tonnes to the underprivileged country during the bilateral meeting.

Chinese President Xi Jinping and President of the Republic of Sierra Leone Julius Maada Bio witness the signing of bilateral co-operation documents in the fields of the Belt and Road Initiative, agriculture, economic development, and the implementation of the Global Development Initiative after their talks at the Great Hall of the People in Beijing, capital of China, Feb. 28, 2024. Xi held talks with Julius Maada Bio, who is on a state visit to China, in Beijing on Wednesday

According to Chinese news outlet Xinhua, President Xi said China and Sierra Leone enjoy a time-honoured friendship and that the two sides have supported each other on issues concerning their core interests and major concerns, carried out efficient co-operation in the fields of economic and social development, co-ordinated closely on issues such as world peace and development, and worked together to fight against Ebola and the COVID-19 pandemic.

China-Sierra Leone relations are a good example of China-Africa solidarity and co-operation, Xi said, adding that China is willing to work with Sierra Leone to consolidate high-level political mutual trust, advance pragmatic and mutually beneficial cooperation, and strengthen coordination on international and regional affairs to push bilateral relations to a new level.

Xi said China firmly supports the Sierra Leonean people in pursuing a development path suited to their national conditions. He said China stands ready to strengthen exchanges with Sierra Leone on national governance and work with Sierra Leone to continue supporting each other's major concerns and safeguarding their respective sovereignty, security and development interests.

The news outlet also said Xi indicated China's willingness to providing assistance and support to the best of its ability for Sierra Leone's development in agriculture, infrastructure construction and human resources, and encourage Chinese enterprises to invest and do business in Sierra Leone.

"Both sides should strengthen co-operation on UN Security Council affairs and jointly safeguard the interests of Africa and developing countries," Xi said.

The Chinese president welcomed Sierra Leone to participate in the Global Development Initiative, the Global Security Initiative and the Global Civilisation Initiative and jointly promote the building of a community with a shared future for humanity.

To work with African countries
According to the Chinese president, China will work with African countries to align its initiatives to support Africa's industrialisation, agricultural modernisation and talent development with the African Union's Agenda 2063 and the development strategies of African countries to further integrate the development of China, Africa and the world to promote the upgrading of China-Africa co-operation and move the world towards a bright future of peace, security, prosperity and progress.

Chinese President Xi Jinping and President of the Republic of Sierra Leone Julius Maada Bio witness the signing of bilateral cooperation documents in the fields of the Belt and Road Initiative, agriculture, economic development, and the implementation of the Global Development Initiative after their talks at the Great Hall of the People in Beijing, capital of China, Feb. 28, 2024

"China is ready to work with African friends, including Sierra Leone, to make this year's session of the Forum on China-Africa Cooperation (FOCAC) a success," Xi said.

Trustworthy friend
Bio said China is a trustworthy and reliable friend, thanking China for its great support for its economic and social development.

The Sierra Leone president also spoke highly of the Communist Party of China leading the Chinese people to achieve leapfrog development and promoting national rejuvenation. Bio said China's experience inspires developing countries to accelerate their development.

H Sierra Leone abides by the one-China principle, supports China in safeguarding its sovereignty and territorial integrity, and supports China in safeguarding its core interests.
 
Why Sierra Leone needs aid
Reports indicate that the economy of Sierra Leone has a debt-to-GDP ratio of 89.0%. Yahoo Finance at the beginning of this year ranked the country 30th among the countries with highest debt-to-GDP in 2024.

A high debt-to-GDP ratio is a cause for concern for any country, as it indicates that the nation's debt levels are substantial relative to its economic output. High levels of debt expose a country to economic shocks and financial crises and affects investor confidence and erodes the country's creditworthiness in the eyes of international financial markets. 

According to the International Monetary Fund (IMF) e-Library, Sierra Leone is assessed to be at high overall risk of public debt distress, but public debt is assessed to be sustainable. 

"IMF's findings are predicated on the strong and frontloaded fiscal adjustment and continued reliance on concessional financing and grants, and moderately high growth rates," the library says.