Is China exploiting Africa?

Xi paid tribute to President Jacob Zuma and South Africa for organising the high level event which brought together Chinese senior government officials and most African heads of state.

Xi, who is co-chairing a major China-Africa summit here, made the remarks when holding a group meeting with leaders of 17 African countries.

The business forum was held under the theme China-Africa Cooperation for Common Development.

According to a recent World Bank report, since the turn of the century, the sub-Saharan region has maintained robust economic growth which would otherwise be impossible without its economic ties with China.

Minister Bimha said the recent State visit to Zimbabwe by Chinese President, Xi Jinping saw the two countries signing deals that included utilities to do with power.

“It includes $5 billion zero interest loans, $35 billion on preferential facilities and export credit lines, concessional loans on more favourable terms; an increase of $5 billion to the China-Africa development fund and a special loan for the development of SMEs”, Xi said.

In January China deployed a peacekeeping battalion in South Sudan.

“Over the years, it has transformed its economy and everyone is now looking to China”.

On Friday, Xi announced a package of programs to strengthen China-Africa cooperation and support Africa’s development in the coming three years at the opening ceremony, winning waves of applause.

“These new measures will directly serve the development strategies of both sides”.

Ralebitso said the meeting also discussed the potential to localise Chinese investment with equity share options and revisiting investment models in the beneficiation of resources.

The trip will be welcome after the economic downturn forced China to slash investment in Africa by more than 40 percent earlier this year.

President Muhammadu Buhari says China remains a strategic and dependable partner in his administration’s determination to change the direction and content of governance. China also actively engages in the global counter-piracy operations in the Gulf of Aden and waters off the Somali coast.

China’s pledge “is not enough, but it’s a good start”, he said.

He further said the cooperation in infrastructure is critical to spur Africa’s economic development, adding that lack of infrastructure is one of the hurdles hindering the development of Africa.

Of the overall financial package, 60 million will go towards supporting the building of African Union’s new 25,000-strong multinational standby force which can respond to crises across the continent.