China grants $5 billion to the Special Loan for the Development of African SMEs
The envelope is part of a funding support to Africa's development worth $60 billion.China has pledged a new funding support to Africa's development, worth $60 billion (€55.4 billion), including $5 billion dollars of additional capital for the China-Africa Development Fund and the Special Loan for the Development of African SMEs.
"China and Africa were comrades in arms in the quest for liberation and freedom, at the height of colonialism and apartheid. Therefore, it was only natural that Africa has developed a win-win partnership for development and progress with China over the years," said Chinese President Xi Jinping in his keynote speech at the Forum on China-Africa Cooperation (FOCAC) in Johannesburg, South Africa.
The funding support covers several key areas including agriculture, renewable energy, skills training, health, peace and security and infrastructure development. It also includes $35 billion of preferential loans and export credit.
The Special Loan for the Development of African SMEs is one of the Eight New Measures of the Chinese government to strengthen China-Africa cooperation under the framework of the Forum on China-Africa Cooperation (FOCAC).
The main purpose is to help African countries stabilise employment and develop local market and economy.
As of the end of June 2015, the combined value of special loan development projects included in the pool was $2.747 billion.