Tweet

III. A. China’s African Policy and New Commitments for 2007–09: THE ROLE OF CHINA’S PUBLIC SECTOR

Written by: International Monetary Fund

Article Overview: As China’s economic engagement with Africa has become more sophisticated, involving more and different players, it has become necessary to look beyond the central government to understand the driving forces behind recent developments. This chapter pays particularly better attention to China’s state financial institutions.

III. A. China’s African Policy and New Commitments for 2007–09: THE ROLE OF CHINA’S PUBLIC SECTOR

As China’s economic engagement with Africa has become more sophisticated, involving
more and different players, it has become necessary to look beyond the central government to
understand the driving forces behind recent developments. This chapter pays particularly
better attention to China’s state financial institutions.
A. China’s African Policy and New Commitments for 2007–09
China’s first African Policy Paper, issued in January 2006, articulates the objectives of
Chinese policy toward Africa and how they are to be achieved. Because the intention is to
build a new type of strategic partnership, the paper emphasizes “mutual benefit,” “common
development,” and “win-win” results in economic relations. It outlines government actions to
promote trade, investment, financial services, agriculture, infrastructure, resources
development, and tourism. The approach is supported by financial and technical assistance in such noncommercial areas as health and education. The thrust of this policy is vividly
demonstrated in China’s new commitments to Africa.
During the Beijing Summit of the Forum on China-African Cooperation in November 2006,
President Hu Jintao of China announced new commitments to Africa for 2007–2009:
• Preferential credits: US$5 billion, consisting of US$3 billion concessional loans and
US$2 billion export buyers credits.19
• Direct investment: A US$5 billion China-Africa Development Fund to support
Chinese FDI in Africa.
• Trade: Further opening up China’s market to Africa by expanding the list of dutyfree
African exports and setting up trade cooperation zones in Africa.
• Grants and debt relief: A doubling of 2006 assistance, to build hospitals, malaria
prevention and treatment centers, and rural schools in Africa and a conference center
for the African Union; and cancellation of all interest-free loans owed by eligible
countries that had matured by the end of 2005.
• Technical assistance: Training for African professionals and sending agriculture
experts to Africa; setting up agriculture technology demonstration centers in Africa;
doubling Chinese government scholarships for African students.
With its heavy emphasis on trade and investment, the new commitment package is consistent
with China’s Going Global strategy, which encourages Chinese enterprises to compete for
resources and markets beyond Chinese borders.
These commitments do not include trade and project financing by Chinese banks on
commercial terms. In May 2007, during the African Development Bank Annual Meetings in
Shanghai, officials of China Exim Bank reportedly stated that they plan to provide about
US$20 billion in infrastructure and trade financing to Africa over the next three years.2

IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007

Related Articles
  Macroeconomic “Shock-absorbers” for Africa
  2.2 Sectoral performance II: Economic Report on Africa 2007
  III. C. Commercial Policies: THE ROLE OF CHINA’S PUBLIC SECTOR
  3.1.4 Overall resource availability: Training priorities, resources and reorientation
  6.3 Financial sector links between investment and diversification: Economic Report on Africa 2007

Article Tags: africa development, africa trade, african cooperation, african exports, african professionals, agriculture experts, agriculture infrastructure, chinese policy, common development, concessional loans, economic engagement, eligible countries, export buyers, hu jintao, infrastructure resources, interest free loans, malaria prevention, mutual benefit, president hu jintao, trade cooperation



Related Forum Posts
What do you do to give back? - I'm launching new section of the site for social entrepreneurship and our first category is going to be called African Accounts. The goal with the project is to raise awareness of African entrepreneurs and showcase that entrepreneurship can be the path to achieving sustainable development. This has always been a passion of mine and I have done a number of talks around the world on this subject so I'm excited to bring it online as well. We have recruited some of the top bloggers in the world who focus on African entrepreneurship and are preparing additional resources. I believe that a big part of running a business is being socially responsible and giving back - even if it's donating your time to an organization or small amounts of money or products. You don't have to be mega-successful to make a difference. What are some of the things you are doing to give back to the community around you?
Re: How will an african make money truely on the net? - Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...
Re: How will an african make money truely on the net? - [quote="OmnivoreInk":koqfopnc]Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...[/quote:koqfopnc] Hi Topeyinka I don't know what products you sell, but if they are digital how about selling them through Clickbank. They will handle the sale for you and will send you cheques on the money you have earned. MichelleJ
Re: How will an african make money truely on the net? - [quote="MichelleJ":2a9hm5bq]Hi Topeyinka I am just wondering, with Paypal as long as they can get your credit card verification I don't think that they worry if you are an African or not. I also live in South Africa and there was no problem getting verified with them once they had checked my credit card details that proved the card belonged to me. Michellej[/quote:2a9hm5bq] Hi Michelle, You can use paypal to send money and buy as a South African, but you are limited to receive payment. So what is the use of spending money without making it. You cannot accept payment with your paypal. Any way South Africans can make use of 2CO to recieve payment on theie websites.
Re: Small Business grant listings and other grant listings - Are African citizens eligible for this grant?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

A New Year in the Pharmaceutical Industry

SEO – Link Building Secrets

Providing Feedback

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.