China's Hu wraps up Africa investment drive
Source: Reuters
(adds agreements signed at news conference) By Charles Mangwiro MAPUTO, Feb 8 (Reuters) - Chinese President Hu Jintao wrapped up his tour of mainland Africa in Mozambique on Thursday, exploring investment and business deals in southern Africa's Portuguese-speaking countries. In Maputo, he held talks with Mozambican President Armando Guebuza and announced a 1.2 billion yuan ($154.9 million) package of interest-free loans for the country's agriculture, health and education sectors. China has been offering loans, debt relief and other incentives to increase its influence in the world's poorest continent in return for access to natural resources, notably oil, to feed its booming economy. "My visit to Mozambique is a result of the Beijing Sino-African summit (held last year) and aimed at promoting a pragmatic and traditional relationship with Mozambique and the rest of Africa," Hu said at a joint news conference. "We want to help Mozambique rebuild its economy and improve the living conditions of its people," he said. Hu said China had cancelled $20 million of Mozambique's debt to his country. Guebuza said the signed agreements "will not respond to all challenges we face in Mozambique, but from the political and economic point of view, complement efforts by Mozambicans in the fight against poverty." Many African governments have warmly embraced Beijing, but analysts have warned the region's poor countries to protect their weak manufacturing sectors against cheaper Chinese imports. Hu has been forced to address those concerns. In a speech in South Africa on Tuesday, he said that "China has never imposed its will or unequal practices on other countries and will never do so in the future". Mozambique is one of Africa's poorest countries, but Western international donors say government policies in the past 10 years have put it on a strong growth path. The Chinese embassy said that while in Maputo Hu would, besides exploring new opportunities in Mozambique, also focus on other African Portuguese-speaking nations -- Angola, Cape Verde, Sao Tome & Principe and Guinea Bissau. It said China has been involved in many construction projects in Mozambique, including building an international conference centre. Bilateral trade rose to $210 million in 2006 from $119 million in 2004, the embassy added. Mozambique is Hu's last stop in mainland Africa. He completes his eight-nation tour with a visit to the Seychelles in the Indian Ocean on his way home on Saturday.
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