China gives Africa $3bn loan
29/01/2007 21:07  - (SA)  

Want to know more? Answerit can help.

Chinese money heading for SA Africa's new colonialists? Emerging nations need clean fuel China's taste for wine grows China's taste for wine grows China oil imports hit record China oil imports hit record China 2006 FDI totals $63bn China 2006 FDI totals $63bn China gives Central Africa $15m

Beijing - China will lend African nations $3bn in preferential credit over three years and double aid and interest-free loans over the same time, Beijing announced on Monday ahead of President Hu Jintao's tour to woo the continent.

The announcement by China's Ministry of Commerce stressed the offer came with none of the strictures that Western countries often demand - and which irk many African leaders.

China has defended its growing trade ties with Africa, whose energy and mineral wealth it covets to fuel its booming economy.

It dismisses criticism in the West that it fails to attach demands for transparency and accountability to offers of aid, loans and investment.

"The preferential loans provided by China carry no political conditions," said the announcement on the Ministry's website. The loans would be mostly steered to basic infrastructure, power projects and joint enterprises, it said.

China's latest support for the world's poorest continent appeared timed for Hu's eight nation tour which starts on January 30 and is expected to yield a stream of business deals and aid pledges.

Hu will visit South Africa, Cameroon, Sudan, Namibia, Seychelles, Liberia, Zambia and Mozambique.

Hu's trip comes three months after Beijing grandly courted the continent by hosting a summit for 48 African leaders.

At the summit, Hu offered $5bn in loans and credit to Africa along with a doubling of aid. The Ministry of Commerce's latest announcement said it was part of efforts to fulfil the Chinese leader's promises.

China does not disclose information about its total aid to African countries.

Some international financial officials say Chinese lending to Africa helps fill a financing gap left by the West, but they also voice concern that China's willingness to attach no conditions undermines efforts of other lenders to root out corruption.

The latest trove of gifts offered by Beijing also included a "modern convention centre" for the African Union, with the building due for completion in 2010.

More African officials and experts will be trained in China, and 100 senior Chinese farming experts will travel to Africa to dispense advice, the Ministry of Commerce said.

What is this? Yahoo Digg Del.icio.us Facebook Brought to you by OUTsurance Car Insurance
	News24 Headlines on your Facebook profile		News24 on mobile