China aims to direct more financial assistance to Africa and expand cooperation in infrastructure development. Speaking at the ongoing 2014 World Economic Forum on Africa in Abuja, Nigeria Chinese Premier Li Keqiang, gave a detailed plan on China’s aid to Africa. The plan calls for more investment, financing and expanded cooperation in infrastructure projects.
“Africa has high demand for infrastructure and industrial development, while China has excess capacity in infrastructure construction and production. The two economies are highly complementary and conducting mutually beneficial cooperation will definitely inject greater momentum into our economic and social development.” Premier Li said.
The Chinese Premier unveiled extra aid for Africa totaling at least US$12bn and offered to share advance technology with the continent to help with development of high-speed rail.
Of all infrastructure projects, Li Keqiang stresses the importance of transportation, saying China will help connect African cities and countries across the vast continent. The Chinese premier outlined three areas that will receive the most focus, which include high-speed railways, expressways and civil aviation. He added that China is ready to work with Africa to promote construction in the telecom sector and electric power facilities.
Li said China will increase credit lines to Africa by US$10bn and will boost the China-Africa Development Fund by US$2bn, bringing it to a total of US$5 bn. With the Chinese appetite for ivory and rhino horns having driven some African wildlife species to the brink of extinction, China pledged to offer US$10mn in aid for wildlife protection.
It is Li’s first visit to Africa since he became premier last year and this follows on from a trip to the continent by President Xi Jinping in March 2013, when he renewed an offer of US$20bn in loans to Africa between 2013 and 2015. Li said that the new US$10bn credit line would be on top of the existing US$20bn already offered.
The premier said China is willing to share its technology and management experience without conditions adding that all projects carried out by China can be done through joint-ventures or cooperatives with African companies.
“I want to reiterate that all of China’s assistance to Africa will have no political strings attached. We’ll not interfere in the internal affairs of African countries or ask something impossible for Africa,” He said.
The World Economic Forum has drew government leaders, global business executives, leading financiers and policy and development technocrats from over 80 countries.
