China seeks to conquer African resources with $10-billion soft loan

Amid growing concerns from certain African nations that China is plundering the natural resources of the most resource-rich continent in the world, Beijing sought to pacify Africa by offering $10 billion in soft loans yesterday at a China-Africa summit in Egypt.

Having practically sidelined Western nations from Africa, China has been able to conquer economically, nations from the Cape of Good Hope to the sand dunes of the Sahara in a big but subtle way by acquiring some of the most natural resource assets, in many cases, in collusion with corrupt and brutal regimes in countries like Zimbabwe, Sudan and Guinea.

Seeking to placate criticism from some African nations, Chinese Prime Minister Wen Jiabao, pledged to grant African countries $10 billion in low-interest development loans for social programs and infrastructure development over the next three years at the two-day China-Africa summit held at the Egyptian resort town of Sharm el Sheik.

Along with the $10 billion development loan, he also pledged a basket full of other inducements like establishing a $1 billion loan programme for small and medium-size businesses, encouragement to Chinese financial institutions to lend to smaller African firms, wipe out some of the remaining debt on certain interest-free loans that it had previously granted, give market access for African products and assist the continent in climate change by building 100 clean-energy projects across Africa.

The $10 billion in new loans is twice as big as what China pledged in 2006 at the last summit.

Speaking at the current summit, Premier Wen said, "Africa's development is an essential part of achieving global development, and as the sincere and dependable friend of Africa, China deeply feels the difficulties and challenges faced by Africa.''