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China Pledges Billions in Aid to Africa

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By JOE McDONALD
The Associated Press
Sunday, November 5, 2006; 12:11 AM

BEIJING -- China is launching a sweeping effort to expand its access to Africa's oil and markets, pledging billions of dollars in aid and loans. Chinese entrepreneurs on Sunday signed deals with African governments and firms worth $1.9 billion, state media reported.

Some 16 deals were signed at the conclusion of a conference of Chinese and African entrepreneurs on the sidelines of a two-day forum in Beijing attended by dozens of African leaders, the official Xinhua News Agency said.

African leaders at the forum said they welcomed Chinese investment and business ties, but Beijing also faces criticism that it is treating Africa like a colonial territory and supports regimes with poor human rights records.

President Hu Jintao pledged to double China's aid to Africa from its 2006 level by 2009. Speaking at the conference's opening ceremony Saturday, he promised $3 billion in loans, $2 billion in export credits and a $5 billion fund to encourage Chinese investment in Africa.

It was not immediately clear if the government's promised $5 billion investment fund played a role in the deals announced Sunday.

"Chinese assistance to Africa is sincere, unselfish and has no strings attached," Premier Wen Jiabao said at the gathering of Chinese and African entrepreneurs.

Possibly reacting to criticism that China's aid to Africa might fuel human rights abuses or corruption, Wen promised to ensure that projects are "open, just, fair and transparent."

The event included heads of state from 35 of the 53 African nations and top officials from 13 others _ one of the largest such gatherings in history.

China's trade with Africa soared to $39.7 billion last year, four times its 2000 level, according to Wen. He called for efforts to boost that to $100 billion by 2020 and promised to open China's markets wider to African exports.

China's state oil companies are expanding in Africa, signing deals in Nigeria, Angola, Sudan and elsewhere. Manufacturers are trying to expand exports to African markets.

Human rights activists accuse China of supporting governments such as Sudan and Zimbabwe that are accused of chronic abuses. African business groups complain about poor treatment by Chinese companies and competition from a flood of low-cost imports.

But a succession of African leaders who spoke Saturday said they want closer commercial ties with China and hope to learn from its two-decade-old boom as they try to reduce poverty.

"Chinese companies can become key players by investing in our development processes," said President Paul Kagame of Rwanda.

Hu said Beijing also will forgive debts owed by the poorest African countries and grant more of their goods tariff-free import status.

China will train 15,000 African professionals, build schools, hospitals and anti-malaria clinics, send agriculture experts and youth volunteers to Africa and build a new conference center for the African Union, Hu said.

He said China would double the number of scholarships given to African students to 4,000 by 2009.

At a banquet Saturday, Hu invoked the shared history of colonialism in China and Africa and their struggle with poverty.

"The Chinese people rejoice at the achievements made by the African people," he said. "The Chinese people will continue to provide assistance and support to African people in an effort to achieve common development."

The New York-based group Human Rights Watch appealed to Beijing on Saturday to be judicious in giving aid. It called on Chinese leaders to avoid giving Sudan assistance that might fuel the Darfur conflict and to stop supplying Zimbabwe with electronic surveillance and Internet-censoring technology.

"Africans do not need another external power enabling abusive regimes," the group said in a statement.

World Bank President Paul Wolfowitz accused Chinese banks last month of ignoring human rights and environmental standards in Africa. He warned that their surge in lending could fuel corruption and debt burdens.

This weekend's conference was a major prestige event for China's communist leadership.

The capital was hung with banners welcoming the African leaders. The government called on residents to avoid driving to keep streets clear for their motorcades.

On Saturday, state television showed Chinese surgeons working in African hospitals, a Kenyan stadium paid for by Beijing, and Chinese and African students dancing together.


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© 2006 The Associated Press

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