Johannesburg: Chinese President Xi Jinping opened a summit with dozens of African leaders in Johannesburg on Friday, pledging $60 billion in funding to promote cooperation and support development efforts in the world’s poorest continent.
The support package includes $5 billion of interest-free loans and $35 billion in preferential financing, export credit lines and concessional loans, Xi said in his opening address to the gathering at the Sandton convention centre in South Africa’s commercial capital. China is providing support to help lift Africa out of poverty and boost trade and doesn’t seek to interfere in nations’ internal affairs, he said.
“China strongly believes Africa belongs to the African people and African problems should be handled by the African people,” he said.
The two-day summit of the Forum on China-Africa Cooperation is the first such top-level gathering to be held in Africa since the grouping was formed in 2000. Trade relations and development projects will top the agenda, but talks are also planned on joint security efforts.
While China is Africa’s largest trading partner, with two- ways flows exceeding $220 billion last year, the continent primarily exports raw materials while purchasing manufactured goods. Chinese investment in Africa fell by more than 40 per cent in the first half of 2015, as the world’s largest economy slowed, according to the Chinese Ministry of Commerce.
“Our relationship with China stood the test the time and is destined to continue flourishing for many years to come,” Zimbabwean President Robert Mugabe, the chairman of the African Union, said in a speech.
China will negotiate free-trade agreements with Africa to promote imports from the continent and support the agriculture industry to help create more local jobs, Xi said.
