Thursday, July 19, 2012
China pledges loans worth $20 billion U.S. to African countries
In a bid to boost economic ties with Africa the Chinese government has pledged 20 billion in loans over the next three years. Back in 2009 China loaned ten million to African countries.
The loans will be used to build infrastructure, agriculture, and the development of small business. Chinese president Hu Jintao and Premier Wen Jibao held talks with African officials during the fifth meeting of the Forum on China-Africa Cooperation.
Some European leaders are critical of what they call the Chinese cheque book approach to Africa. They say that China wants to gain access to Africa's rich resources and will support undemocratic leaders to do so.
Many African leaders applaud the Chinese loans including the president of South Africa Jacob Zuma. Zuma said;. "Africa's past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries," "We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain." For more see this article.