Africa: China Plans $20 Billon Loan for Africa

China, one of the fastest developing countries plans to grant a loan totalling to $20billion between 2013 and 2015, a top official at the Chinese Embassy in Uganda has said.

Speaking to The Independent in an interview on August 9, Zou Xiaoming, the counsellor at the Economic and Commercial Counsellor’s Office said China is interested in funding projects like infrastructure say roads, power dams among others instead of giving grants to fight diseases and hunger.

“We know infrastructure is the key to development,” Xiaoming said. “Once these are in place, other activities like trade and others can go on very well.”

He urged the Uganda government to provide a favourable environment for businesses if the country is to develop.

China granted a loan of $5billion to African countries between 2006 and 2009 and $10 billion loan between 2009 and 2012. These investments have contributed to tax revenue growth and employment.

In Uganda, Chinese investments was estimated at about $596 million by the end of 2011 according to data from the Uganda Investment Authority and around 265 Chinese companies opened their business in Uganda, creating 28,000 jobs.

Posted by admin on Aug 12 2012. Filed under African News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry