Ecombd

Monday, May 22, 2006

China sanctions $ 1billion in loan to Nigeria

Written by: S.M.Mehdi Hassan
China has sanctioned one billion dollar loan to Nigeria in order to fix the country’s damaged railway tracks. China in earlier days, sent many engineers and doctors on the ground of ‘Revolutionary Third World Unity’ and now business interest is at the forefront of providing financial aid. According to the report published in Fin24.co.za Nigerian Finance Minister, Ngozi Okonjo-Iweala disclosed about the deal on Sunday in Nigeria’s capital Abuja, at a two-day international conference. She said that provision of infrastructure is critical for economic development.

Last week, China Railway Construction Corporation and CITIC group won a tender to build 528 km highway in Algeria. The Chinese consortium beat German, US and Japanese bidders. In January 2005 China made an offer of $2bn loan to Angola for repairing its infrastructure. In January 2006 CNOOC LTD, China’s top offshore oil producing company bought a stake in a Nigerian oil and gas field. It looks like China has become worried about its rising needs for oil due to rapid industrialization and African countries always attracted the world for their minerals and oil reserves.

The report also says that China has decided not to provide loans and monetary aids for improving human rights. Last April, on a visit to Morocco, Nigeria, and Kenya, Chinese President Hu Jintao, in Nigerian Parliament, said that China respected Africa’s “Independent and Sovereignty”. On the other hand, China’s diplomatic approach with Sudan has come under serious criticism from the Western countries. They are saying that China is making the situation worse through putting more emphasis on their economic interest. However, an official of the ruling party of Sudan, visiting China mentioned China as a “Close friend” of Sudan.

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1 comments:

Biplob Kishore Deb said...

It is very good for Chinese econimy that China is heeding towards African countries with their economic interest. They are now investing in some third world countries like Nigeria and Angola. It is also an achievment for China that they got the tender of making a 528 km highway in Angola beating some big investor countries like Germany, US and Japan.
I think their business expansion policy is working well.
Thank you for your well-organised article.