/ 5 November 2006

China, Africa sign $1,9bn-worth of deals

China on Sunday signed trade deals with 10 African nations worth $1,9-billion, with the biggest contract involving aluminium production in Egypt, a Chinese official said as the China-Africa summit ended in Beijing.

The 16 commercial contracts and agreements cover cooperation in natural resources, infrastructure, finance, technology and communications, said Wan Jifei, chairperson of the China Council for the Promotion of International Trade.

The deals between Beijing and the African countries came at the end of a trade conference attended by 1 500 Chinese and African businessmen during the summit. ”This conference of Chinese and African entrepreneurs has brought substantial results,” Wan said.

By far the biggest deal is one involving the production of aluminium in Egypt worth $938-million, according to a copy of the agreement given to reporters.

Among the other nations to have signed trade deals with China on Sunday are South Africa, Sudan, Kenya, Nigeria and Ghana.

There were no deals announced in the oil or gas sectors, which are among the most significant spheres of economic cooperation linking China and Africa.

The two-day summit brought together leaders from China and 48 African nations and has been described by Beijing as its biggest and most important international gathering since the founding of the communist regime in 1949.

On Saturday, Chinese President Hu Jintao told the opening of the summit that Beijing will double aid and offer $5-billion in loans and credits to Africa by 2009. ”China will forever be a good friend, good partner and good brother of Africa,” Hu said in a speech at the Great Hall of the People.

China will provide $3-billion of preferential loans and $2-billion of preferential buyer’s credit loans to Africa, he said. Beijing will also cancel more debt owed by poor African countries, he added, without giving specifics.

Hu also pledged China will further open up its market to Africa by increasing the number of tariff-free products from the continent from 190 to 440, and establish up to five trade and economic cooperation zones there.

Trade between China and Africa in 2005 amounted to $39,7-billion — nearly a tenfold increase from 1995 — and is likely to reach $50-billion this year, according to Chinese officials.

Chinese Premier Wen Jiabao said on Saturday China intends to more than double its bilateral trade with Africa to $100-billion by 2010. — Sapa-AFP