China to extend over $12 billion in aid to Africa

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China to extend over $12 billion in aid to Africa

BEIJING Mon May 5, 2014 7:33am EDT

Chinese Premier Li Keqiang claps as he attends the opening ceremony of the Boao Forum for Asia (BFA) Annual Conference 2014 in Boao, Hainan province April 10, 2014.

Credit: Reuters/China Daily


BEIJING (Reuters) - Chinese Premier Li Keqiang unveiled extra aid for Africa totaling at least $12 billion on Monday, and offered to share advance technology with the continent to help with development of high-speed rail, state news agency Xinhua reported.

Li pledged the additional funding in a speech at the Organisation of African Union headquarters in the Ethiopian capital, Addis Ababa.

China will increase credit lines to Africa by $10 billion and will boost the China-Africa Development Fund by $2 billion, bringing it to a total of $5 billion, Xinhua said. It provided no details of the timeframe.

Li "depicted a dream that all African capitals are connected with high-speed rail, so as to boost pan-African communication and development," the report said. As China has advanced technologies in this area, Li said China was ready to work with Africa "to make this dream come true".

China will also offer $100 million in aid for wildlife protection, Li added.

It is Li's first visit to Africa since he became premier last year, and follows on from a trip to the continent by President Xi Jinping in March 2013, when he renewed an offer of $20 billion in loans to Africa between 2013 and 2015.

Li said that the new $10 billion credit line would be on top of the existing $20 billion already offered, the China News Service reported.

Chinese officials said last week that Li's trip, which also takes in oil-rich Nigeria and Angola, would not simply be for energy deals and Beijing will be seeking to help boost African living standards.

Trips by Chinese leaders to Africa are often marked by big natural resource deals, triggering criticism from some quarters that China is only interested in the continent's mineral and energy wealth.

Africans broadly see China as a healthy counterbalance to Western influence but, as ties mature, there are growing calls from policymakers and economists for more balanced trade relations.

(Reporting by Ben Blanchard; Editing by Simon Cameron-Moore)

China to extend over $12 billion in aid to Africa| Reuters

 

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Africa: Chinese Premier Proposes to Upgrade China-Africa Cooperation in Six Areas

6 May 2014

Addis Ababa — Chinese Premier Li Keqiang proposed Monday that China and Africa earnestly boost collaboration in industry, finance, poverty reduction, ecological protection, people-to-people exchanges, and peace and security so as to create an upgraded version of their all-round cooperation.

Li outlined the proposal in a speech delivered at the headquarters of the African Union in which he expounded China's Africa policy and reaffirmed Beijing's commitment to further deepening the China-Africa comprehensive cooperative partnership.

With regard to industrial cooperation, Li noted the rapid growth of bilateral trade over recent years and urged the two sides to bring the volume to 400 billion U.S. dollars by 2020. The figure stood at 210.2 billion dollars in 2013.

China is ready to expand cooperation with Africa in building road, rail, telecommunications, power grid and other infrastructure so as to help the continent realize regional interconnection, he said, adding that Beijing also encourages Chinese enterprises to form joint ventures with African counterparts in a bid to improve Africa's regional aviation industry.

The premier also highlighted a dream of connecting African capitals with high-speed rail, saying that China is willing to use its world-leading technologies in this area to help make the dream come true so as to improve pan-African communication and development.

In the financial area, Li said China has decided to increase its loans for African countries by 10 billion dollars, which brings the total pledged amount to 30 billion dollars, and to expand the China-Africa development fund by two billion dollars to five billion dollars.

As to poverty reduction, China will train 2,000 agricultural technicians and management personnel for Africa in the coming five years, and tilt its assistance toward such welfare areas as drinking water and prevention and control of epidemics.

Stressing that ecological protection is a shared responsibility of all humanity, Li said the Chinese government will provide Africa with 10 million dollars of free aid for wild life preservation and promote joint research in protecting biological diversity, preventing and controlling desertification and promoting modern agriculture.

In respect of people-to-people exchanges, Li said China will carry out its African talent plan in an all-round manner and will provide African countries with 18,000 government scholarships and help them train 30,000 various professionals as scheduled.

As for peace and security, Li said China supports Africa to solve African problems in the African way and stands ready to assist Africa's capacity-building in such areas as peace-keeping, counter-terrorism and anti-piracy.

China, he said, will offer South Sudan another 50 million yuan (about eight million dollars) of humanitarian aid to help deal with the humanitarian crisis in the African country. - Xinhua

allAfrica.com: Africa: Chinese Premier Proposes to Upgrade China-Africa Cooperation in Six Areas

 

[Chinese-Dragon]

Trips by Chinese leaders to Africa are often marked by big natural resource deals, triggering criticism from some quarters that China is only interested in the continent's mineral and energy wealth.

Africans broadly see China as a healthy counterbalance to Western influence but, as ties mature, there are growing calls from policymakers and economists for more balanced trade relations.

Our deals with Africa are mutually beneficial for both sides, we both benefit from mutual trade and investment.

It's a bit rich for Westerners to complain about our ties with Africa, since the Westerners simply stole the resources of Africa and enslaved their people. We on the other hand are actually paying for the resources, not to mention building huge amounts of infrastructure under contract.

As the article mentions, Africans themselves broadly see China as a healthy counterbalance to Western influence. And at the end of the day, it's up to them whether they want to work with us or not, and they are choosing to work with us.

 

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Li promotes railway, aviation technologies in Africa

2014-05-06 08:37 Xinhua Web Editor: Qin Dexing

Chinese Premier Li Keqiang (C), Ethiopian Prime Minister Hailemariam Desalegn and African Union (AU) Commission chairperson Nkosazana Dlamini-Zuma attend an exhibition featuring China's most advanced railway and aviation technologies at the AU Conference Center in Addis Ababa, Ethiopia, May 5, 2014. (Xinhua/Li Xueren)

In a spacious exhibition hall at the headquarters of the African Union (AU), four models of Chinese-made trains- one high-speed train and three locomotives - and 10 aircraft models were on display Monday.[Special coverage]

Accompanied by Chinese Premier Li Keqiang, who is on an Africa tour, Ethiopian Prime Minister Hailemariam Desalegn and Chairperson of AU Commission Nkosazana Dlamini-Zuma attended an exhibition featuring China's most advanced railway and aviation technologies.

The leaders watched a video from a large LED panel about the development of China's railway and aviation industries before they were shown around and briefed by Chinese technicians on the specifics of those models.

It is not the first time that Li promotes China's technology to other countries during his overseas visits.

In Romania last November, Li invited leaders of 16 central and eastern European countries to a similar exhibition on China's railway technology and other infrastructure and manufacturing equipments.

In Thailand last October, he attended the opening ceremony of a Chinese high-speed railway exhibition with Thai Prime Minister Yingluck Shinawatra.

In his speech at the AU headquarters earlier in the day, Li said China is ready to expand cooperation with Africa in building road, rail, telecommunications, power grid and other infrastructure so as to help the continent realize regional interconnection.

He said that Beijing encourages Chinese enterprises to form joint ventures with African counterparts in a bid to improve Africa's regional aviation industry.

The premier depicted a dream that all African capitals are connected with high-speed rail so as to boost pan-African communication and development.

Noting that China has developed world-leading technologies in this area, Li said his country is ready to work with Africa in an unreserved manner to make this dream come true.

Guang Z. Chen, country director for Ethiopia of the World Bank, said Li's proposal is a very welcome move because Africa has an infrastructure deficit while China has both the financial resources and the construction capacity to help meet the demands.

Africa faces daunting challenges in improving its infrastructure, he said, adding that great efforts should be made in this regard so as to push Africa's regional integration, which is key to the continent's competitiveness.

He Wenping, a researcher with the Chinese Academy of Social Sciences, said China's success story in poverty reduction is remarkable and massive investment in infrastructure was one of the key factors.

Based on their own experience, the Chinese see clearly the importance and necessity of improving infrastructure in Africa as well as the great business opportunities behind it, she said.

China has a long history of aid to Africa, including in sectors such as rail. In the 1970s, it helped build the Tanzania-Zambia railway, which, with a total length of 1,860 km, has become a major corridor connecting eastern, central and southern Africa.

As of the end of 2013, Chinese enterprises had signed project contracts worth nearly 400 billion U.S. dollars with African countries. They have built over 2,200 kilometers of railway and 3,500 kilometers of highway in the continent.

He Huawu, chief engineer of China Railway Corporation, said China's railway technologies and equipments are advanced and proven, safe and reliable, and at a relatively lower cost.

China possesses a complete system of research and development, construction, equipment manufacturing and operation, and the country's railway technologies and equipments have been exported to many countries and regions in the world, he said.

By the end of 2013, the total mileage of high-speed railway in China had reached 11,000 km, equal to the sum of the rest of the world.

Li promotes railway, aviation technologies in Africa - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

 

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Trade with Africa will double by 2020, Li Keqiang tells Ethiopia conference

Visiting premier predicts volume will rise to US$400 billion by 2020

PUBLISHED : Monday, 05 May, 2014, 11:09pm
UPDATED : Tuesday, 06 May, 2014, 7:51am

Zhuang Pinghui pinghui.zhuang@scmp.com


Premier Li Keqiang in Addis Ababa. Photo: Xinhua

Trade volume with Africa will double by 2020, Premier Li Keqiang told the African Union at the start of his week-long visit to the continent.

Chinese direct investment was also expected to quadruple to US$100 billion within that time, Li said in a speech delivered at the union's Chinese-built headquarters in Addis Ababa, Ethiopia.

But the deeper economic partnership should broaden beyond its current focus, he said.

China will never pursue a colonial path like some countries did
Premier Li Keqiang

"The collaboration must not be limited to energy and infrastructure but expanded to industrialisation, urbanisation, the modernisation of agriculture, with more attention given to green, low-carbon development and environmental protection," Li said.

Sixty deals are expected to be signed during Li's visit, which also includes stops in Nigeria, Angola and Kenya. His wife, Cheng Hong , is accompanying him on the trip.

China has become Africa's biggest economic partner, and Li predicted trade volume would reach US$400 billion, up from US$200 billion last year, by 2020.

China wanted to become "actively involved" in the continent's economic advancement and would seek to promote the development of its textile, home electronics and manufacturing industries. But it would also consider projects in telecoms, aviation and other forms of travel.

"The Chinese government proposes to establish joint venture airlines between Chinese companies and Africa and providing civilian aircrafts to develop the regional aviation industry. We will also set up a high-speed railway research and development centre," Li said.

Before he departed for his visit, the premier addressed fears that Beijing was becoming a neocolonial power in Africa. "China will never pursue a colonial path like some countries did or allow colonialism, which belonged to the past, to reappear in Africa," Li said on Sunday.

Some Chinese companies have been accused of shoddy construction and failing to respect employment laws. But Shu Yunguo, a professor at Shanghai Normal University's Centre of African Studies, said: "Products in China have quality issues as well, and many companies fail to recognise the importance of environmental protection."

Trade with Africa will double by 2020, Li Keqiang tells Ethiopia conference | South China Morning Post

 

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China inks new deals with Ethiopia

May 5 2014 at 10:35am

By Aaron Maasho

Associated Press
Chinese Premier Li Keqiang (left) is welcomed by Ethiopian Premier Hailemariam Desalegn at the Presidential Palace in Addis Ababa. Picture: Elias Asmare


Addis Ababa - China signed a raft of agreements with Ethiopia on Sunday as Premier Li Keqiang arrived for the first leg of his four-nation Africa tour aimed at shoring up burgeoning Sino-Africa ties that saw their trade top $200 billion last year.

This is Li's first visit to Africa since he became premier last year, and follows a trip to the continent by President Xi Jinping in March 2013, when he renewed an offer of $20 billion in loans to Africa between 2013 and 2015.

Africans broadly see China as a healthy counterbalance to Western influence but there are growing calls from policymakers and economists for more balanced trade relations.

In Ethiopia, Chinese firms have invested heavily in recent years, with their worth swelling well over $1 billion in 2014, according to official figures.

Beijing is also a key partner in Ethiopia's bid to expand infrastructure such as roads, railways and telecom services.

Chinese ministers and company executives accompanying Li signed 16 deals with their Ethiopian counterparts, including loans and co-operation agreements for the construction of roads and industrial zones.

“This right track in the relationship between us has been laid. I am sure it will lead us to stronger growth in our ties,” Li told a press conference.

Huawei Technologies Company Ltd - the world's second largest telecom equipment maker - and ZTE Corporation are currently working to introduce a high-speed 4G broadband network in the capital Addis Ababa and a 3G service throughout the country.

Officials said both firms have now signed an $80 million deal to lay optical ground cables to form a nationwide network.

China has a relationship with Africa which pre-dates its current resource-hungry economic boom.

In previous decades, China's Communist leaders supported national liberation movements and newly independent states across the continent.

Li's tour, which will also take in Nigeria, Angola and Kenya, comes virtually on the 50th anniversary of then-Premier Zhou Enlai's landmark trip to 10 African nations from December 1963 to January 1964.

Beijing has been accused of holding back the continent's economic development by focusing on the pursuit of raw materials rather than the creation of local jobs and markets.

Keen not to be perceived as an imperial master, Li said China was willing to sit down with African countries to resolve any issues that arose over investment projects.

“I wish to assure our African friends in all seriousness that China will never pursue a colonialist path like some countries did, or allow colonialism, which belongs to the past, to reappear in Africa,” the official news agency Xinhua quoted Li as saying ahead of his arrival in the Ethiopian capital. - Reuters


China inks new deals with Ethiopia - Africa | IOL News | IOL.co.za

 

[Yzd Khalifa]

Awesome! The Chinese need to aggressively invest in Africa, it makes a hell of a profit.

 

[Raphael]

Awesome! The Chinese need to aggressively invest in Africa, it makes a hell of a profit.

A lot of people are reluctant to invest in Africa because they have bought into racist myths about how anarchic and chaotic Africa is, when Africa is one of the most promising frontier markets of our time. But I have no problem with that - it just means less competition for Chinese firms.