News / Asia

China Announces $20 Billion in Africa Loans

China's President Hu Jintao (R) shakes hand with Benin's President Thomas Yayi Boni before a group photo session during the opening ceremony for the Fifth Forum on China-Africa Cooperation at the Great Hall of the People in Beijing, July 19, 2012.
China's President Hu Jintao (R) shakes hand with Benin's President Thomas Yayi Boni before a group photo session during the opening ceremony for the Fifth Forum on China-Africa Cooperation at the Great Hall of the People in Beijing, July 19, 2012.
Shannon Sant
BEIJING — China has announced $20 billion in loans to Africa over the next three years. The package was announced during the Forum on China-Africa Cooperation in Beijing.
 
This is the fifth China-Africa forum held in Beijing, and leaders from many African countries, including South African president Jacob Zuma, traveled to China to attend. During a speech at the opening ceremony Chinese President Hu Jintao announced $20 billion in new loans to the continent.  
 
This loan package is twice the amount of China’s last pledge of aid to Africa in 2009.  
 
“China's assistance to Africa has been growing steadily,” he said. “[China] has met the pledge of providing 15 billion U.S. dollars of lending of a preferential nature to Africa,” said Hu.

Loans for African resources

Hu said the loans would go to infrastructure, agriculture and manufacturing projects, as well as the development of small and medium-sized businesses throughout the continent.  
 
China aims to improve its ties to African countries on which it relies for oil, copper and other commodities that fuel China’s booming economy. Chinese government statistics report trade with Africa grew to about $166 billion in 2011. African exports to China have risen to $93 billion from slightly more than $5 billion in the last 10 years.  
 
Chinese investment in Africa also is growing rapidly. But Beijing’s involvement has been criticized for resource-extraction projects accused of being exploitative, and for striking deals without adequate concern for human rights. Critics argue that Chinese investors should demand transparency and good governance before granting aid and financing development projects.  


Mending past rifts

Africans also have protested against Chinese companies importing Chinese laborers to Africa and for business practices that they say do not lead to better jobs or local wages.
 
At Thursday’s forum Chinese officials highlighted what they call people-to-people and cultural exchanges as a driving factor in improving relations with African leaders.
 
Zhong Weiyun is Deputy Director-general of the Bureau of African Affairs of International Department, who spoke about how China’s policies in Zambia came under harsh criticism during the country’s election last year.

Reinforcing mutually beneficial ties

He said meetings between the Communist Party officials and Zambia’s new leadership have helped to ease tensions and pave the way for new Chinese investment in the country.  
 
Zhong said they were successful in dismantling those understandings between the two political parties, which paved the way and created conditions for the relationship to return to normal between the two countries.
 
Analysts say the current global economic slowdown has made African countries more reliant on Chinese investment. In his speech Thursday,  Hu said Chinese aid to Africa would continue to grow in the years ahead and promised that China would remain a friend to the continent.

You May Like

Disappointing Report on China's Economy Shakes Markets

In London and New York shares lost 3 percent, while Paris and Germany dropped around 2.4 percent More

DRC Tries Mega-Farms to Feed Population

Park at Boukanga Lonzo currently has 5,000 hectares under cultivation, crops stretching as far as eye can see, and is start of ambitious large-scale agriculture plan More

Video War, Drought Threaten Iraq's Marshlands

Areas are spawning ground for Gulf fisheries, a resting place for migrating wildfowl, source of livelihood for fishermen and herders who have called the marshes home for generations More

This forum has been closed.
Comment Sorting
Comments
     
by: zhouxuhua from: China
July 20, 2012 3:42 AM
In China,there are a lot of people need money.I don't know why China take actions to improve those people's living levels by this money.Although african people do need the money.To my anger,someone said what China did enslaved African people and was hungry for superiority.From their standpoints,everyone who help others is hungry for superiority.If it was true,Jesus is on longer selfless.Because he is ready to help others.

by: standingtall from: america
July 19, 2012 7:32 PM
Definitely a positive step for china and africa, especially africa. They should think independently what is best for them rather than being told by US what is best for them, or worst yet, fell into the victim and tools for a hidden agenda by old glorious western powers.
In Response

by: cloudy mood from: china
July 20, 2012 3:23 AM
well said!

by: Dacite from: Canada
July 19, 2012 2:08 PM
That should make a lot of presidents rich and the people a lot poorer when they have to pay this back!
In Response

by: Dacite from: canada
July 20, 2012 9:46 AM
My point is : How much money has been given (not loaned) to Africa. It seems to end up in Swiss bank accounts of various dictators not in the infrastructure of the countries. So when it comes to loans, someone will have to pay them back even if they did not benefit from them.
In Response

by: judas from: China
July 20, 2012 3:26 AM
He is just worrying about corruption in China and Africa
In Response

by: Jonathan Huang from: canada
July 19, 2012 9:56 PM
To Dacite, are you sick? how building roads, rail ways, schools and hospitals make Africa people poorer?
Africa needs those infrastructures to start her economy. China experience shows only when your infrastructures are done your economy can start boom.
The old Chinese saying: instead of giving people fish rather teach them fishing.

by: Mr. Lee from: South Africa
July 19, 2012 12:52 PM
The scares from European exploitation still show to this day. The country has been raped for centuries, now China is stepping in to heal the wound.

by: Lead Roza from: N.J
July 19, 2012 12:52 PM
China may be hungry for superiority, but Africa is hungry for aid. I think this may be the start of a good and prosperous union.

[http://www.inetsoft.com/info/report_tool_definition_and_demonstration/]

by: Blake from: New York
July 19, 2012 12:46 PM
Here we go again, some many haters here. Sounds like US is the ONLY country that can deal/help others. But, the moment China or others do...OMG! The world is going to end.
Self-absorbed, self-entitled Americans! In case you have not noticed because you are busy watching reality TV:
The world does not revolve on US only.

by: freddie from: U. S,
July 19, 2012 9:44 AM
good move for China and Africa
In Response

by: Randall Krieg from: Seattle
July 19, 2012 4:23 PM
Good move for China, yes, but not for Africa. Remember the concept of "third world debt"? Where the IMF and World Bank loaned billions to developing countries, a large fraction of which was siphoned off to private accounts controlled by dictators and their cronies? Then the people of those nations were left with long-term debt and no way to pay it back, and foreign interests were able to control their economies by dictating the terms of the loan rollovers. It's one of several ways that America and Europe engage in modern colonialism in all but name. More lately there have been some successful movements to forgive this debt, essentially writing it off and admitting it was a bad deal for everyone involved.

Now China is getting in on this power play, and it's an excellent deal from their point of view -- but totally wrong for the "recipients". It's wrong fiscally, and wrong morally. While it is possible to make sustainable investment in infrastructure and production facilities that benefit the countries receiving the aid, that ain't the goal China has in mind here.
In Response

by: Pat from: Switz
July 19, 2012 2:02 PM
What move. ? The question is Who and Who is the loan going to and who and how is it going to' be' managed in the first place . If we cannot manage pur resources how can we manage a borrowed money . Our leader should ruturn there pot belli home and think of otre things to do.

by: Jinghis Khan from: Inner Mongolia
July 19, 2012 8:14 AM
China issues as much money as it wants and buys even people's minds and causes enormous inflation not only in Africa but also in the rest of the world. Please stop wrongdoing.
In Response

by: Anonymous
July 20, 2012 2:20 PM
To Sodia, do you have any evidence to say "China wants to rule over Africa"? Then what will you say about USA and some Asian countries such as the Phillipines, Japan, South Korea,etc. Anyway USA just provides some help and "makes friends" with them, right? And USA also owes loans from China. If you think China wants to rule over USA, tell the Gov't not to accept the money and pay it back.
In Response

by: cliff loggrin from: lebanon, pa
July 19, 2012 10:00 AM
For the want of spending money in their own county, many countries are accepting loans/grants and assistance from the great nation of China.
What private deals and future considerations, and costs!, are not often revealed to the population (thinking of Jamaica as I type this as there is no right-to-know, as in the US.) I believe the self-serviceing relationships should be factored in, and the long term affects. After all, isn't the US debt at $27,000 for every resident of American due to borrowing by elected representatives, passing this burden to future generations?
In Response

by: Sodia from: New Jersey
July 19, 2012 9:59 AM
I am afraid for Africa...they are so desperate for money but the Chinese are so controlling and hungry for superior-ism.. I feel they may try to rule over Africa and economically enslave the people like they have done their own people and other so called partnering countries. I will be praying for African leadership to not be greedy and sale the country into economic slavery but to be wise and clever with a love for its people's prosperity and economic freedom not just love for African leadership PERSONAL gain..my God be with Africa
In Response

by: Eason from: New York, US
July 19, 2012 9:55 AM
Excuse me, doesn't US do Quantitative Easing as well?
In Response

by: Anonymous
July 19, 2012 9:54 AM
Do you mean it is a good thing that people are poor and without enough food and medicare?

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs