Africa to get $10bn in loans from its 'true friend' China

CHINA HAS underlined its role as Africa’s “true and trusted friend” with $10 billion (€6

CHINA HAS underlined its role as Africa’s “true and trusted friend” with $10 billion (€6.75 billion) worth of soft loans to African nations over the next three years and plans to cancel debt for some of the poorest countries on the continent.

At a two-day summit at the Sharm El-Sheikh resort in Egypt, Chinese prime minister Wen Jiabao sought to emphasise China’s environmentalist side, saying his country would build 100 new clean energy projects for Africa in the next three years.

Beijing would also provide a $1 billion (€675 million) loan for for small- and medium-sized businesses, Mr Wen told the summit, which is being attended by officials from 50 countries.

“Whatever changes may take place in the world, our friendship with African people will not change,” the prime minister added.

READ MORE

Trade is booming between China and Africa, despite occasional tensions over the feeling among some Africans that China is only on the continent to win the fuel it needs to keep its remarkable economic rise ticking over.

The loan package is double the $5 billion China gave in assistance over three years at the last forum on China-Africa co-operation summit, held in Beijing in 2006 with great pomp and circumstance.

Foreign minister Yang Yiechi said “steady progress” had been made in following up from this summit.

All across Africa, there are schools, hospitals and football stadiums built with Chinese money, clinics funded by Chinese state-owned companies and there are plenty of scholarships available for Africans to study in China.

The spirit of the relationship is portrayed as being of solidarity between developing countries. Beijing likes to stress the shared historical heritages of China and Africa – both were ravaged by imperialists and were exploited by the West over the years.

Total trade between China and Africa last year was $107 billion (€72 billion), a tenfold increase in eight years.

Chinese direct investment in Africa has swelled from $491 million (€331 million) in 2003 to $7.8 billion (€5.25 billion) in 2008, according to official Chinese figures.

Critics say that China only wants Africa’s natural resources and that Beijing is happy to deal with some of the world’s most corrupt or discredited regimes in Africa in order to boost its economic influence.

China has been accused of backing regimes such as Omar al-Bashir’s Sudanese government. Mr Bashir, who is wanted for war crimes by the International Criminal Court, is attending the conference in Egypt, where he thanked China for its help.

Whenever it is challenged on its policies, Chinese officials reiterate the mantra of how they follow a policy of non-interference in the domestic affairs of African countries, adding that the West is still wrapped up in colonial thinking.

A similar line is taken when western countries accuse it of human rights violations.

“Africa is fully capable of solving its own problems, in an African way,” Mr Wen said in his speech. “China has never attached any political strings . . . to assistance to Africa.”

He also pledged greater co-operation with Arab nations on economic, political and cultural fronts.