China to Increase Loans to Africa by $10 Billion

(WSJ) Chinese Premier Li Keqiang said Beijing would expand an existing credit line to several African states by $10 billion, to a total of $30 billion.

Speaking in Addis Ababa on Monday, Mr. Li also reaffirmed Beijing's support for Africa's infrastructure sector.

"Infrastructure is the precondition to industrial development. China will actively participate in projects such as roads, railways, telecommunications and power in Africa," Mr. Li said in the Ethiopian capital.

He didn't mention specific countries or projects that could receive financial support.

Mr. Li also said China will discuss with the African Development Bank the prospect of establishing a joint fund to support infrastructure development.

Mr. Li, who is on a four-country tour on the continent, said China would add $2 billion to the China-Africa Development Fund, bringing its capitalization to $5 billion, according to the transcript of a speech to be delivered at the headquarters of the African Union.

China's direct investment in Africa reached $25 billion at the end of last year, the Ministry of Foreign Affairs said at a news briefing last week.

The weeklong trip by the premier and his wife includes stops in Nigeria, Angola and Kenya.

Source: Wall Street Journal