China Extends Additional $12 Billion In Aid To Africa

Chinese Premier Li Keqiang on Monday pledged an extra $12 billion in assistance funds to the African continent, taking the total loans to over $30 billion, reported Reuters.

Li, speaking during a visit to the African Union headquarters in Addis Ababa, Ethiopia, said that he hoped some of the loans would go to support small and medium-seized companies in Africa, adding that economic development on the continent offered huge opportunities for both China and Africa.

Chinese Premier Li Keqiang on Monday pledged an extra $12 billion in assistance funds to the African continent, taking the total loans to over $30 billion, reported Reuters.

Li, speaking during a visit to the African Union headquarters in Addis Ababa, Ethiopia, said that he hoped some of the loans would go to support small and medium-seized companies in Africa, adding that economic development on the continent offered huge opportunities for both China and Africa.

“History and reality make clear to all: China’s development gives opportunity to Africa; Africa develops, and China also benefits,” Li claimed.

$10 billion of the additional funds will go into existing credit lines to African nations, while the other $2 billion would go into boosting the China-Africa Development Fund.

Li offered to share advance technology with Africa to help with development of a continent-wide high-speed rail system.

[quote]“We have a dream that all African capitals are connected with high-speed rail, so as to boost pan-African communication and development,” the Chinese Premier said. China is ready to work with Africa “to make this dream come true,” he added.[/quote]

It is Li’s first visit to Africa since he became premier last year, and follows on from a trip to the continent by President Xi Jinping in March 2013, when he renewed an offer of $20 billion in loans to Africa between 2013 and 2015.

Other initiatives announced included $100 million in aid for wildlife protection, courses to help train 2,000 agricultural technicians and management personnel for Africa in the coming five years, and nearly 18,000 government-sponsored scholarships for African students.

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Related: China-Africa Trade Grows To Over $200 Billion

China’s direct investment in Africa reached $25 billion at the end of last year, the Ministry of Foreign Affairs said at a news briefing last week.

Bilateral trade also reached $210.2 billion last year, with Li targeting both sides to further raise the volume to $400 billion by 2020.