Five billion dollar development fund for Africa

>From Kwaku Osei Bonsu, GNA - Special Correspondent, Beijing, China

Beijing, Nov. 4, GNA - The Chinese President Mr Hu Jintao, has announced his government's decision to set up a 5-billion dollar China-Africa Development Fund to encourage more Chinese Companies to invest in the continent.

Additionally, it would provide 3 billion dollars of preferential loans and 2 billion dollars of preferential buyers' credits to Africa in the next three years.

Mr Hu, who was opening the Beijing Summit of the Forum for China-Africa Co-operation at the Great Hall of the People on Saturday, said these were part of initiatives to strengthen their strategic partnership and co-operation with the continent.

Other packages, he spoke of, included debt cancellation of all interest-free loans owed her by heavily indebted poor and least developed African countries, which matured by the end of 2005, opening up of China's market by raising the number of export items receiving zero-free tariff treatment from 190 to 440 and the establishment of three to five trade and economic co-operation zones within the next three years.

The rest were the training of 15,000 African professionals, setting up 10 special agricultural technology demonstration centres in the continent, increasing the number of its educational scholarships, the building of a Conference Centre for the African Union, grant to fight malaria and the dispatch of volunteers to assist to build schools.

President John Agyekum Kufuor is among 41 Heads of State and Governments attending the summit.

The Summit is being held on the occasion of the 50th anniversary of diplomatic ties between China and African countries and is meant to provide the platform to fashion out a new trade and investment relations for the coming years.

President Hu said building strong ties between China and Africa would not only promote development on each side, but also help to cement the unity and co-operation among developing countries and contribute to the establishment of a just and equitable international and economic order.

"China is the largest developing country and Africa is home to the largest number of developing countries. Our combined population accounts for over one-third of the world total. Without peace and development in China and Africa, there will be no global peace and development."

President Hu added that, "Common destiny and common goals have brought us together. China will remain a close friend, reliable partner and good brother of Africa."

Mr Ato Meles Zenawi, the Ethiopian Prime Minister and co-Chairman of the Summit, said the main challenge facing Africa was the fight to overcome poverty and backwardness and to achieve economic independence. "Africa needs the support of its friends to overcome these challenges."

He said: "The peaceful development of China and the dramatic improvement in its economic capacity and global role and the continuing achievements of China suggests that economic co-operation should be at the core of Sino-Africa partnership." In the era of globalisation, such co-operation should be based on mutual benefits and on seeking win-win solutions.