To prove what Chinese Premier Wen Jiabao said that ‘China was a “true and trusted friend” of the continent and its people,’ China is making available a total of $10 billion in concessional loans over the next three years to Africa. The relationship between China and Africa ‘politically goes back decades and is now economically booming.’ As an added gesture, ‘China will also cancel more African debt.’ China in Africa is creating some negative reaction in the West.
The $10 billion in concessional loans to Africa are aimed to ‘build up financing capacity, and will support Chinese financial institutions in setting up a $1 billion fund for loans to small- and medium-sized African companies.’ For the least developed of African countries that have diplomatic ties with China, 95 percent of these countries’ products will enjoy zero tariff. ‘It will start with 60 percent of products at zero-tariff from next year.’
China will also endow the African continent with various socioeconomic projects such as medical equipment and anti-malarial materials to 30 hospitals and 30 malaria treatment centers in Africa at the cost of 500 million yuan. Additionally, China will train 3,000 doctors and nurses. China will also build 50 schools, as well as train 1,500 teachers for Africa. To complete the education package, ‘China will increase the number of scholarships available to African students to 5,500’ by 2012.
Climate experts say that Africa will be hardest hit by the ill effects of climate change. China partners with the continent for the mitigation of and adaptation to climate change. The country ‘will build 100 clean energy projects in Africa including solar power, biogas and small-scale hydro-power.’
Via Forbes.com
