China Vastly Expands Investment in Africa

May 14 (EIRNS) -- The Chinese State Council has approved setting up a China-Africa Development Fund, on the eve of the annual board meeting of the African Development Bank (ADB), which will be held in Shanghai May 16-17, Xinhua reported. This will be the first time the ADB will meet in Asia since it was founded 43 years ago, and Chinese Prime Minister Wen Jiabao will address the meeting, on "Africa and Asia: Partners in Development." Key issues to be discussed will be African infrastructure development, regional integrity and poverty relief. In November 2006, China hosted the Beijing Summit of the China-Africa Cooperation Forum. The ADB meeting will be chaired by People's Bank of China president Zhou Xiaochuan, and it will be attended by finance ministers and governors of the central banks of the 77 member nations.

ADB President Donald Kaberuka said that Chinese investment in Africa is expected to reach $2 billion just this year, in a press conference in Shanghai May 13. Kaberuka said that trade volume between China and Africa has grown five times over the past five years, with Chinese investment in Africa at $11.7 billion by end-2006, according to Chinese figures, while trade has reached $55.5 billion, an annual rate of growth of over 30% in the same period.

Kaberuka said that "Something was happening in Africa over the past six years, which was not happening for 30 years. Economic growth picked up in an incredible way, and we are appealing to African partners to come not just for oil and gas, but for other opportunities. China is the fastest growing country with the largest market in the world, and we have come to learn how this happens," he said. "We have also come to consolidate the links between China and Africa following the China-Africa summit (in Beijing)," China Daily reported. Overall, China is helping African nations build 30 hospitals, 100 rural schools, 10 anti-malaria centers and 10 agricultural technology centers over the next three years.

In Shanghai May 13, Gao Jian, vice governor of state-run China Development Bank (CDB), said that the CBD is initiating the China-Africa Development Fund, with the equivalent of US $1 billion, to eventually grow to US $5 billion. The fund will sponsor equity and other investments in Africa, which will support agriculture, manufacturing, the energy sector, transportation, telecommunications, urban infrastructure, resource exploration and the development of Chinese enterprises in Africa. "The CDB attaches great importance to cooperation with Africa. We have sent eight working groups to Africa. This year, we plan to send another 18 working groups there," Gao said.