China to give Africa $10 billion dollars in loans

Wen Jiabao also pledged to cancel debts of 31 African countries

SHARM EL-SHEIKH, Egypt — Chinese Prime Minister Wen Jiabao on Sunday pledged to give Africa 10 billion dollars in loans, brushing off criticism of "neo-colonialism" as China boosts its presence on the continent.

"We will help Africa build up its financing capabilities ... We will provide 10 billion US dollars for Africa in concessional loans," Wen told a Forum on China-Africa Cooperation which opened in the Egyptian Red Sea resort of Sharm el-Sheikh on Sunday.

His pledge was included among measures he said would be taken over the next three years, including cancelling debts of African countries to increase his country's role in the continent.

The Asian giant pledged five billion dollars in assistance over three years at the last Forum on China-Africa Cooperation summit, held in Beijing in 2006, and has signed agreements to relieve or cancel the debt of 31 African nations.

It will also provide a one-billion-dollar loan for "for small and medium-sized businesses," Wen said.

"China is ready to deepen practical cooperation in Africa," he said, adding that Beijing was prepared to take on a role in "the settlement of issues of peace and security."

China will also remove tariffs on 95 percent of products "from the least-developed African states that have diplomatic relations with China," he said.

Wen also said China would help build 100 solar power and bio-gas plants and increase infrastructure and agriculture projects.

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