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BEIJING, July 19, 2012
China will provide US$ 20 billion in credit to African countries over the next three years, doubling its earlier loan commitment in a move to strengthen fast deepening economic ties with the continent.
President Hu Jintao announced the credit pledge while addressing a gathering of heads of state and representatives from 50 African countries here on Thursday, at the opening session of the fifth Forum on China-Africa Cooperation (FOCAC). China had pledged US$ 10 billion in soft loans at the previous China-Africa summit in 2009.
Reflecting fast-growing economic ties - trade between China and Africa rose to US$ 166.3 billion last year, up by 83 per cent from 2009 - Mr. Hu announced the opening of a $ 20 billion credit line to assist African countries in developing infrastructure, agriculture, manufacturing and small and medium enterprises.
He said China would also increase assistance by building agricultural technology demonstration centres, training 30,000 personnel and offering 18,000 scholarships.
Ahead of the opening of Thursday’s conference, African countries have called for diversifying a trade relationship that has been driven by Chinese appetite for natural resources.
Chinese officials have pledged to increase imports of value-added products, and also announced a move to expand zero-tariff treatment to 95 per cent of African imports, up from the current 60 per cent.
Mr. Hu said China would play a role to “support the African integration process” by helping transnational and trans-regional development of infrastructure. China would provide financial support for African Union-led peace-keeping missions and train officials in peace and security affairs, he said.
Separately, the China-Africa Development Fund has said it would invest US$ 2 billion in projects, according to an announcement by the China Development Bank, a shareholder in the fund. The bank’s Vice President Yuan Li was quoted as saying by the State-run Xinhua news agency that the fund would lead to US$ 10 billion investment by Chinese enterprises involving 60 projects in 30 countries, including an economic and trade zone in Egypt, a cement factory in Ethiopia and a power plant in Ghana. The CDB already had US$ 13.7 billion in outstanding loans in Africa as of June, Mr. Yuan said.
Chinese and African officials have, this week, hit out at criticism from the West on the growing trade relationship. Some Western countries have described the resource-driven commerce as exploitative, while also hitting out at China for engaging with governments that give short shrift to human rights concerns.
“Africa’s past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries,” South African President Jacob Zuma told the FOCAC opening on Thursday. “We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain,” he was quoted as saying by Reuters. “We certainly are convinced that China's intention is different to that of Europe, which to date continues to intend to influence African countries for their sole benefit.”
The FOCAC meeting has focused largely on the trade relationship. More controversial issues such as the cases of abuse of workers on some Chinese projects in Africa, concerns voiced by Chinese companies over the safety of their personnel and illegal wildlife trade driven by Chinese demand for ivory will not figure in discussions, Chinese officials said on Wednesday.
“These are isolated cases and do not represent the mainstream of China-Africa cooperation,” said Lu Shaye, a Foreign Ministry official. Mr. Lu also stressed that China's model of dealing with African countries, and interfering less in their domestic affairs, had been widely welcomed. “Many of the regional conflicts in Africa have been caused more by external factors, particularly foreign intervention,” he said. No intervention does not mean no responsibilities. Western countries have a lot of accusations of China’s principle of non-intervention in domestic affairs, but this principle has received support from many African countries.”
The Hindu : News / International : China boosts Africa ties with $ 20 billion credit pledge
China will provide US$ 20 billion in credit to African countries over the next three years, doubling its earlier loan commitment in a move to strengthen fast deepening economic ties with the continent.
President Hu Jintao announced the credit pledge while addressing a gathering of heads of state and representatives from 50 African countries here on Thursday, at the opening session of the fifth Forum on China-Africa Cooperation (FOCAC). China had pledged US$ 10 billion in soft loans at the previous China-Africa summit in 2009.
Reflecting fast-growing economic ties - trade between China and Africa rose to US$ 166.3 billion last year, up by 83 per cent from 2009 - Mr. Hu announced the opening of a $ 20 billion credit line to assist African countries in developing infrastructure, agriculture, manufacturing and small and medium enterprises.
He said China would also increase assistance by building agricultural technology demonstration centres, training 30,000 personnel and offering 18,000 scholarships.
Ahead of the opening of Thursday’s conference, African countries have called for diversifying a trade relationship that has been driven by Chinese appetite for natural resources.
Chinese officials have pledged to increase imports of value-added products, and also announced a move to expand zero-tariff treatment to 95 per cent of African imports, up from the current 60 per cent.
Mr. Hu said China would play a role to “support the African integration process” by helping transnational and trans-regional development of infrastructure. China would provide financial support for African Union-led peace-keeping missions and train officials in peace and security affairs, he said.
Separately, the China-Africa Development Fund has said it would invest US$ 2 billion in projects, according to an announcement by the China Development Bank, a shareholder in the fund. The bank’s Vice President Yuan Li was quoted as saying by the State-run Xinhua news agency that the fund would lead to US$ 10 billion investment by Chinese enterprises involving 60 projects in 30 countries, including an economic and trade zone in Egypt, a cement factory in Ethiopia and a power plant in Ghana. The CDB already had US$ 13.7 billion in outstanding loans in Africa as of June, Mr. Yuan said.
Chinese and African officials have, this week, hit out at criticism from the West on the growing trade relationship. Some Western countries have described the resource-driven commerce as exploitative, while also hitting out at China for engaging with governments that give short shrift to human rights concerns.
“Africa’s past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries,” South African President Jacob Zuma told the FOCAC opening on Thursday. “We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain,” he was quoted as saying by Reuters. “We certainly are convinced that China's intention is different to that of Europe, which to date continues to intend to influence African countries for their sole benefit.”
The FOCAC meeting has focused largely on the trade relationship. More controversial issues such as the cases of abuse of workers on some Chinese projects in Africa, concerns voiced by Chinese companies over the safety of their personnel and illegal wildlife trade driven by Chinese demand for ivory will not figure in discussions, Chinese officials said on Wednesday.
“These are isolated cases and do not represent the mainstream of China-Africa cooperation,” said Lu Shaye, a Foreign Ministry official. Mr. Lu also stressed that China's model of dealing with African countries, and interfering less in their domestic affairs, had been widely welcomed. “Many of the regional conflicts in Africa have been caused more by external factors, particularly foreign intervention,” he said. No intervention does not mean no responsibilities. Western countries have a lot of accusations of China’s principle of non-intervention in domestic affairs, but this principle has received support from many African countries.”
The Hindu : News / International : China boosts Africa ties with $ 20 billion credit pledge
