Kenya to reap big as China doubles loans to Africa
Kenya is set to benefit from a Sh1.7 trillion-loan-facility (USD 20 billion) which China has pledged for African countries over the next three years.
China’s President Hu Jintao announced the colossal amount Thursday, and added that the next three years will be the time for a “solid and greater progress” in the relations between China and the African countries.
President Hu spoke as he opened a meeting between African leaders and China –the Forum for China Africa Cooperation – that is held every three years in Beijing.
He said the money will go to infrastructure, manufacturing, technology, culture and small and medium enterprises.
To tame the proliferation of substandard goods, the Chinese Head of State said his country will be partnering with African countries to “upgrade customs and commodity inspection” joints.
Though the details of disbursement will be thrashed out at a meeting of ministers later on Thursday and Friday, Kenya’s delegation to China led by Prime Minister Raila Odinga is optimistic that the many infrastructure projects being implemented will benefit from the loan.
Kenya’s Transport Minister Amos Kimunya, Forestry Minister Noah Wekesa, Regional Development Minister Fred Gumo and Finance Minister Robinson Githae, together with Roads Permanent Secretary Michael Kamau, were part of the team that attended the meeting.
Mr Kimunya and Mr Wekesa told the Nation shortly after the announcement was made that Kenya’s share of the loan will help it achieve its Vision 2030 goals, especially when it comes to infrastructure development, agriculture and combating climate change.
Mr Kimunya said that the transport component for which the Chinese money will be needed include the building of the standard gauge railway between Kenya and Uganda; the construction of the Lamu Port and related projects; and the modernization of the Port of Mombasa.
“I am here as part of the delegation, so right now, we don’t have a global figure. But those are the obvious projects that we are partnering with the Chinese government on,” said Mr Kimunya.
The Transport minister said the trans-border projects will make Kenya likely to access a significant portion of the amount.
China places greater weight on infrastructure projects because those will give it access to a wider regional market and allow it to reach raw materials in the continent's interior.
Mr Kamau, the Roads PS, remained cagey about the amounts that the country will get for roads or even what the government was placing on the table. The PS opted to only offer pointers saying that the amount for roads will be at the levels received over the last three years.
“We got Sh35 billion last year including Sh26 billion for the roads bypass in Nairobi and Sh9 billion for Thika Road. Now, if all ministries were working like us, then you can see how much we’ll be talking about,” said Mr Kamau. "But we know what is on the table for Africa it is now for the continent to compete".
President Hu added that 1,500 chinese medical personnel will be sent to Africa and that his government will continue offering free treatment for cataracts.
Dr Wekesa said his ministry was happy with the amount that will help it tackle climate change and to protect forests, now that President Hu said “meteorology and forest protection” were a priority in so far as the loan was concerned.
