十大计划解读英文版

Reading of Trade and Economic Contents in the Ten Cooperation Plans

Announced at the Johannesburg Summit and the 6th Ministerial

Conference of the Forum on China-Africa Cooperation

December 2015

The Johannesburg Summit and the 6th Ministerial Conference of the Forum

on China-Africa Cooperation were held in South Africa in December 2015. On

behalf of the Chinese government, President Xi Jinping announced at the

summit to upgrade the new type of China-Africa strategic partnership to a

comprehensive strategic and cooperative partnership and to implement ten

cooperation plans on industrialization, agricultural modernization,

infrastructure development, financial cooperation, green development, trade

and investment facilitation, poverty reduction, public health, cultural and

people-to-people exchanges, and peace and security cooperation. In the field of

economy and trade, China and Africa will work together to implement

China-Africa industrialization plan, China-Africa agricultural modernization

plan, China-Africa infrastructure plan, China-Africa green development plan,

China-Africa trade and investment facilitation plan, China-Africa poverty

reduction plan and China-Africa public health plan.

Based on opinions widely solicited among China and African countries, the

above-mentioned plans for economic and trade cooperation cope well with the

shared pursuit of China and African countries for faster development in new

circumstances as well as the general trends of China-Africa economic and trade

cooperation. Guided by the cooperation principles of “sincerity, real results,

affinity and good faith” proposed by President Xi Jinping and taking a balanced

approach in upholding principles and pursuing interests, we proposed these

cooperation plans that take account of reality and vision as well as heritage and

innovation. These plans connect development strategies and priorities of China

to those of Africa, aim to realize a full coverage on all African countries and all

aspects of China-Africa cooperation, and attempt to enable an all-dimensional,

interlinked and systemic cooperation between China and Africa. These

cooperation plans, even more substantive, forceful and extensive than any trade

and economic cooperation measures announced in the previous sessions of

FOCAC, fully demonstrate China’s strong support to Africa for its inclusive

and sustainable economic and social development. They will help China and

Africa deepen practical cooperation, fully share development fruits, jointly

seize opportunities and meet challenges, and bring China-Africa economic

cooperation and trade onto a higher level, which will serve as strong

underpinnings for China-Africa comprehensive strategic partnership.

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I. China-Africa industrialization cooperation plan. China will

vigorously connect its industries with African industries and promote

production capacity cooperation with Africa, encourage Chinese

enterprises to invest and establish presence in Africa, jointly build or

upgrade a number of industrial parks, and send senior government

experts and advisors to African countries. China will set up a number of

regional vocational education centers and schools for capacity building,

train 200,000 technical personnel, and provide 40,000 training

opportunities for African personnel in China.

Policy reading: industrialization cooperation is a priority in China-Africa

commercial cooperation in the future and shows that China-Africa commercial

cooperation is exemplary and visionary. Africa needs industrialization if it

wants to achieve transformative economic development. The Agenda 2063 of

the African side makes it clear that by 2063 manufacturing should account for

over 50% of its GDP and hire over 50% of its new entrants into the labor

market and highlights that Africa must further increase the added-value of its

products, enhance labor skills and realize economic growth and

industrialization. China, with a comprehensive, independent and complete

industrial system, is actively promoting global production capacity cooperation.

China’s advantageous industries and production capacity can meet Africa’s

needs in industrialization, while Africa has a strong desire and conditions to

receive relocated Chinese industries. Conditions are ripe for the two sides to

work together on industrialization. In light of the Agenda 2063 and African

countries’ plans in industrialization and diverse economic development, China

will further encourage and support Chinese companies in expanding investment

in Africa. We will promote the connection of Chinese and African industries

and production capacity cooperation. Starting with key links in the upstream

and downstream of industrial development, we will cultivate “soft environment”

and provide “hard support” to promote chain-like development of China-Africa

industrial cooperation. Therefore, in China-Africa industrialization cooperation

plan, China will work together with Africa in the following priority areas:

- Building cooperation platforms. China will continue to support Africa’s

effort to build industrial parks, and work together with African countries to

build or upgrade a number of trade and economic cooperation zones including

industrial parks through market-oriented operations and multiple forms of

investment and financing. China will support the infrastructure development in

the zones such as roads, water and electricity facilities, and the development of

public service facilities such as standard factory buildings, with a view to

turning these trade and economic cooperation zones into demonstration

platforms for Africa’s industrial clustering and international cooperation on

production capacity, thus “building a nest to attract the phoenix” for Africa’s

industrialization drive.

- Supporting layout planning. As developing countries, China and African

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countries share similar development tasks and objectives, and can draw on each

other’s development experience. Based on Africa’s economic development

conditions, China will send senior experts and advisors to those African

countries with need and provide them with intellectual support on the layout

plans, policy design, operation and management concerning Africa’s

industrialization drive. China will share with Africa its own successful

experience in industrialization without any reservation.

- Training managerial and technical talent. Talent is key to

industrialization, and a core link in Africa’s bid to improve its self-development

capacity. Since the 3rd Ministerial Conference of the FOCAC, China has

delivered on its compromises to train for Africa 15,000, 20,000 and 30,000

personnel respectively. In the coming three years, with a focus on

industrialization, China will provide 40,000 training opportunities for African

personnel in China in areas relating to Africa’s economic development and the

improvement of people’s livelihood. China will also step up effort to provide

training for the youth and women, and help Africa cultivate more of its own

technical and managerial personnel.

- Basic vocational skills training. China will combine public and private

forces to jointly select with the African side a number of African countries with

a regional reach and establish a number of regional vocational education

centers there. China will provide effective and sustainable basic vocational

skills training for the African workforce by way of technical assistance,

overseas training, distance education, etc., so that Africa could have more of its

own skilled talent who are able to translate the enormous demographic

dividends of Africa into real development advantages.

II. China-Africa agricultural modernization plan. China will share its

experience in agricultural development with Africa and transfer readily

applicable technologies to it. We encourage Chinese enterprises to engage

in large-scale farming, animal husbandry, and grain storage and

processing in Africa to create more local jobs and increase farmers’ income.

China will carry out agricultural development projects in 100 African

villages to raise rural living standards, send 30 teams of agricultural

experts to Africa, and establish a “10+10” cooperation mechanism between

Chinese and African agricultural research institutes. China is greatly

concerned about the poor harvest caused by El Nino in many African

countries and will provide RMB 1 billion of emergency food aid to the

affected countries.

Policy reading: Developing modern agriculture and raising the level and

capacity of agricultural development is an important avenue for Africa to

achieve food security and safeguard economic development. Africa is richly

endowed with natural conditions for agricultural production. Both the Agenda

2063 and the Comprehensive Africa Agricultural Development Plan are set in

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the important direction of increasing agricultural productivity, promoting the

localized production of grain, developing modern agriculture and ensuring food

security, and set forth the development objective of eliminating hunger and

food shortage by 2063. As a major farming country, China is in possession of

some production and management experience and practical technologies in

agricultural development that are suitable for African countries. There is a

time-honored tradition as well as a solid foundation for cooperation between

the two sides in agriculture. In line with Africa’s Agenda 2063 and the

agricultural development plans of African countries, China will further share its

experience in agricultural development with Africa, transfer readily applicable

technologies to it, and on the basis of traditional agricultural cooperation, build

in an all-round way China-Africa agricultural industrial chains and improve the

development of modern agriculture in Africa, so that Sino-African agricultural

cooperation could benefit more African people and contribute more to food

security in Africa. To this end, China will, under the China-Africa agricultural

modernization plan, engage in cooperation with Africa, focusing on the

following areas:

- Implementing agricultural development projects to raise rural living

standards. China will actively mobilize government, business and private

sector resources to send agricultural experts to rotate among posts in 100

African villages, who will impart and spread Chinese agricultural expertise

suitable to local conditions and needs. By providing agro-information services

and organizing trade associations, among others, efforts will be made to bring

local farmers and the market together, help the farmers enhance skills and

income and raise the development standards of rural Africa.

- Boosting agricultural development capability. China will dispatch 30

groups of agricultural technical experts and vocational teachers to African

countries for agricultural planning, academic exchange, experiments and

demonstration, and technical and teaching guidance. More African agricultural

talent will be trained locally to support Africa’s capacity building for

agriculture.

- Conducting agricultural research cooperation. Agricultural technology

is the guarantee for African agricultural modernization. On this front, China

stands ready to step up its cooperation with Africa in agricultural technology

transfer and research, and agricultural research training. Based on existing

China-aided agricultural cooperation projects in Africa, China and Africa are to

select ten agricultural research institutes each to set up cooperation mechanisms

for scientific research exchanges and cooperation in seed breeding, poultry and

livestock improvement, pest and disease prevention and treatment, and animal

epidemic prevention and control. Support will go to Africa’s agricultural

science and technology innovation, so as to enhance agricultural productivity

and value added of agro-produce and develop modern agriculture on the

continent.

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- Providing emergency food relief. Due to El Nino, several African

countries have suffered severe droughts and widespread output contractions.

According to the needs of related countries, China will offer humanitarian food

relief to affected African countries, actively explore cooperation with related

international organizations and help alleviate the food crisis in Africa to bring

up its food security level.

III. China-Africa infrastructure plan. China will step up its

mutually-beneficial cooperation with Africa in infrastructure planning,

design, construction, operation and maintenance. We support Chinese

enterprises’ active participation in Africa’s infrastructure development,

particularly in sectors such as railways, roads, regional aviation, ports,

electricity and telecommunications, to enhance Africa’s capacity for

sustainable development. We will also support African countries in

establishing five transport universities.

Policy reading: As a traditional element of China-Africa cooperation,

infrastructure represents a major area for the upgrading and transformation of

China-Africa commercial cooperation. Backward infrastructure is a bottleneck

restraining African integration and independent sustainable development.

Africa’s Agenda 2063 sets forth to connect African capitals with business hubs,

enhance civil aviation efficiency and strengthen port and marine shipping

industry; The Program for Infrastructure Development in Africa, identifying

energy, transport, information and communication technologies and

trans-boundary water resources as four major areas, also include a railway

network of four North-South and six East-West lines and a highway network of

three North-South and six East-West connections. China enjoys great strength

in infrastructure development. As China-Africa infrastructure cooperation goes

deeper and deeper, the two sides have set up cross-border and cross-regional

infrastructure partnerships, setting the stage for cooperation of a higher level.

China will continue to back Africa’s integration efforts and, with reference to

Africa’s infrastructure vision and fully leveraging cooperation mechanisms

such as Africa’s cross-border and cross-regional joint infrastructure working

group, further deepen its cooperation with Africa in upstream and downstream

areas of infrastructure development, including planning, design, construction,

operation and maintenance, through the execution of a host of priority projects,

in support of African efforts to improve infrastructure conditions and business

environment with advanced equipment, technology, standards and services.

Towards this end, under the China-Africa infrastructure plan, China will focus

on the following areas in its cooperation with Africa:

- Railways, roads and ports. Through multiple financing and cooperation

models and with reference to the layout of the railway network of four

North-South and six East-West lines and the highway network of three

North-South and six East-West connections, China will encourage its

companies to play an active part in Africa’s railway, highway and port network

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construction, work with Africa on building a host of major highway, railway

and port projects and provide mature and reliable technology and equipment to

assist in the development of the transport network on the continent and drive

economic growth along the connection routes.

- Regional aviation. China will join Africa in continuously advancing the

China-Africa Regional Aviation Cooperation Program, and, based on

market-oriented operation, deepen aviation investment and operation

cooperation, provide more civil aircraft equipment and support the construction

of supporting facilities in Africa, such as airports, component warehouses,

repair centers and aviation schools. Coordinated cooperation between the two

sides will be pushed forward in products, technology, standards, supporting

facilities, after-sale services and personnel training to continuously enhance the

operation efficiency and connectivity of African civil aviation.

- Electricity. According to the actual needs of African countries, China will

adopt multiple financing models to support Africa’s power generation,

transmission and transformation and grid construction projects featuring

hydropower, coal fire, photovoltaics, wind power and biomass, so as to help

Africa address its power constraint on economic growth and secure continuous

motivation for African development.

- ICT. China supports African efforts to build an information society and

develop digital economy. It encourages Chinese companies to participate in a

market-oriented way in the construction, operation and service of information

networks in Africa and gradually put in place modern ICT networks beneficial

for African development.

- Talent and R&D. China will mobilize government and business resources

to help Africa establish, upgrade or renovate 5 transport universities, including

those specialized in aviation, railways and roads. It will provide Africa with

all-round support in terms of infrastructure, teaching equipment and

collaborative plans, technical assistance and operational management, and help

Africa build up its own professional force for infrastructure development

through systematic training programs, thus providing talent and R&D support

to the sustainable development of connectivity projects in Africa.

V. China-Africa green development plan. China will support Africa in

bolstering its capacity for green, low-carbon and sustainable development

and support Africa in launching 100 projects to develop clean energy,

protect wildlife, promote environment-friendly agriculture and build

smart cities. China-Africa cooperation will never be pursued at the

expense of Africa’s eco-system and long-term interests.

Policy reading: It is the shared goal of China and Africa to protect the

environment while achieving development. As Africa moves onto the fast track

of development, it is critical to avoid ecological degradation caused by

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economic development. This is an essential component of Africa’s inclusive

and sustainable development and has attracted increasing attention from the

governments and people of African countries. China has accumulated some

successful experience in ecological conservation and green development and

paid close attention to environmental protection in its trade and economic

cooperation with Africa. While enhancing the Chinese businesses’ awareness of

environmental protection in Africa, China will also step up its cooperation with

Africa and support Africa in its endeavor for green, low-carbon and sustainable

development in light of the actual needs of African countries. For this purpose,

China will focus on cooperation in the following areas under the China-Africa

green development plan.

- Clean energy and wildlife protection. China will launch a number of

clean energy development and wildlife conservation projects in Africa,

including disaster prevention and reduction, demonstration projects of wildlife

protection, environmental cleanup, meteorological monitoring and clean energy

to help Africa achieve related targets in the UN 2030 Agenda for Sustainable

Development.

- Environment-friendly agriculture and smart cities. China will

implement a number of environment-friendly agricultural and smart city

projects, in areas such as agricultural R&D, planting, production, storage and

processing for promoting environment-friendly agriculture, and low-carbon

urban planning, transport, construction, smart grid and big data projects for

building smart cities with a view to achieving sustainable agricultural

development and urbanization and harmony between human and nature in

Africa.

VI. China-Africa trade and investment facilitation plan. China will

carry out 50 aid-for-trade programs to improve Africa’s capacity, both

“hardware” and “software”, for conducting internal and external trade

and investment. China is ready to negotiate with countries and regional

organizations in Africa comprehensive free trade agreements covering

trade in goods and services and investment cooperation and increase

import of African products. China will support African countries in

enhancing law enforcement capacity in areas such as customs, quality

inspection and taxation. We will also engage in cooperation with Africa in

standardization, certification and accreditation and e-commerce.

Policy reading: As Africa’s largest trading partner and major source of

investment, China has been working closely with African countries to create

new growth areas of trade and investment cooperation. Africa’s Agenda 2063

sets forth the goals of building a Pan-Africa FTA, raising the share of intra-FTA

trade to 50% of total African trade, and Africa’s share to 12% of global trade by

2045, and achieving the free flow of people, capital, goods and services by

2063. In light of Africa’s development goals and actual needs, China will

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continue to support the continent in expanding internal and external trade and

investment, improving trade structure, increasing the export of non-resources

products, enhancing trade and investment facilitation, creating an easier and

freer trade and investment environment, and advancing economic integration in

Africa. For this purpose, China will step up cooperation with Africa in the

following areas under the China-Africa trade and investment facilitation plan.

- Continuing to implement Aid for Trade programs. China will carry out

50 aid-for-trade programs geared to the different needs of African countries,

including capacity building, upgrading customs inspection and transport

facilities, and provision of related supplies and equipment. These programs will

help remove internal market barriers and deepen China-Africa commercial

cooperation at the regional level.

- Carrying out FTA cooperation. China champions the goal of a

Pan-African Free Trade Area, and is willing to negotiate with Africa

comprehensive free trade agreements that will cover trade in goods and

services and investment cooperation. We will fully unlock the potential of

bilateral commercial cooperation and improve the institutional environment for

trade and investment liberalization and facilitation so that more African goods

will have access to the vast Chinese market and more Chinese businesses will

be attracted to invest in Africa.

- Enhancing e-commerce cooperation. E-commerce enjoys broad prospect

and serves as an important instrument for trade and investment facilitation in

Africa. China will encourage its enterprises to explore e-commerce and other

“Internet Plus” opportunities in line with market principles, so that Africa, like

other parts of the world, can also share the benefits of information technology

and big data.

VII. China-Africa poverty reduction plan. While intensifying its own

poverty reduction efforts, China will increase its aid to Africa by carrying

out in Africa 200 “Happy Life” projects and poverty reduction programs

focusing on women and children. We will cancel outstanding debts in the

form of bilateral governmental interest-free loans borrowed by the

relevant least developed African countries that mature at the end of 2015.

Policy reading: Africa is facing the arduous task and common goal of

poverty reduction and improving people’s livelihood. In Agenda 2063, Africa

set out the targets of reducing stunt to 10% of the youth population and

underweight prevalence to 5% among children by 2025. As China is expediting

its poverty reduction efforts, it will strengthen cooperation and share

experience with African countries in a wide range of areas. China will help

African improve its quality of life and happiness index and contribute to the

wellbeing of people in China and Africa and beyond. Following are the priority

areas for cooperation under China-Africa poverty reduction plan.

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- Implementing “Happy Life” Projects and other poverty reduction

programs. China will mobilize government, businesses, and private resources

for extensive cooperation with Africa in jointly carrying out 200 poverty

reduction projects for the benefit of grassroots communities in Africa. The

“Happy Life” projects will enhance the capacity for public service in rural

areas, strengthen employment skills training, improve rural community

environment and living standards, and build the “last mile” of rural roads so as

to link African villages to modern civilization. China will send mobile medical

teams and volunteers to areas in need to disseminate knowledge on healthcare

for women and children and safe drinking water, train local medical workers,

and look after the reproductive health of African women and the healthy

growth of African children. Through the China-assisted primary and secondary

schools and vocational institutes, we will help to enable better teaching and

management of schools, provide school and daily supplies and basic nutritional

diets. We will offer stationery, daily necessities, books and sports and cultural

goods, so that more African youth get access to quality education.

- Canceling outstanding debts in the form of intergovernmental

interest-free loans. To ease the debt burden of African countries and achieve

sustainable development, China will write off the outstanding

intergovernmental interest-free loans that are due by the end of 2015 for

relevant least developed countries. We will check the outstanding interest-free

loans with related countries, sign the debt relief agreement and complete the

write-off formalities as soon as possible.

VIII. China-Africa public health plan. China will help Africa

strengthen its public health prevention and control system as well as its

capacity building by participating in the building of the African Center for

Disease Control (ACDC). We will support pacesetting cooperation between

20 Chinese hospitals and 20 African hospitals, and upgrade hospital

departments. We will continue to send medical teams to Africa and

provide medical assistance such as the “Brightness Action” program for

cataract patients and maternal and child care. We will provide more

anti-malaria compound artemisinin to Africa, and encourage and support

local drug production by Chinese enterprises in Africa to increase

African’s access to medicine.

China’s public health cooperation with Africa has been booming in recent

years. After the Ebola outbreak in West Africa in 2014, China was the first to

act with four rounds of emergency humanitarian assistance, including medical

supplies and equipment, assistance in building diagnostic and treatment centers

and bio-labs, and sending of medical teams to fight against the epidemic side

by side with the African people. The recent announcement of the fifth round of

assistance plan for social and economic recovery of affected countries has been

applauded by the international community and the people in Africa. According

to Agenda 2063, neglected tropical diseases and communicable diseases such

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as Ebola will be fully brought under control; non-communicable diseases will

be significantly reduced; the African people will enjoy a life expectancy of

above 75 years. Based on the development goals and practical needs of Africa,

China will support Africa’s efforts to strengthen public health prevention and

control and capacity for self-development. Following are the priority areas for

cooperation under China-Africa public health plan:

- Providing assistance to the ACDC. China is ready to stand by Africa in

responding to the outbreak of major epidemics, support the upgrading of the

public health prevention, control and treatment system, and safeguard the life

and health of African people. In response to the requests of the African Union

and many African countries, China will actively work on the planning of

ACDC and offer support in IT system development, technology and equipment

guarantee, laboratory cooperation, personnel training and scholarship.

- Carrying out cooperation between hospitals. To help African national

hospitals improve medical technology and operation and management, China

will encourage pacesetting cooperation between Chinese and African hospitals.

The two sides will jointly select 20 hospitals for assistance and cooperation in

department development, patients’ treatment, medical staff training, equipment

maintenance, and operation and management of hospitals.

- Dispatching medical teams. China’s medical teams and the “Brightness

Action” have treated numerous African patients and are welcomed by African

countries. Building on previous cooperation, China will send short-term

medical teams composed of clinical experts to 40 African countries for medical

assistance, including the “Brightness Action” and healthcare for women and

children. We will also provide diagnostic and treatment equipment and drug

consumables, and provide better and more customized medical services to the

African people.

- Supplying anti-malaria drugs. Tu Youyou, a famous Chinese medical

scientist, won the 2015 Nobel Prize in Physiology or Medicine for her

achievements in anti-malaria medicine. Over the years, China’s anti-malaria

compound artemisinin has played an important role in combating malaria in

Africa. Building on this, China will continue to supply compound artemisinin

to five million Africans to contribute to Africa’s anti-malaria efforts and

China-Africa medical cooperation.

- Encouraging pharmaceutical cooperation. Following market rules,

China will encourage domestic enterprises to cooperate with Africa on

pharmaceutical R&D and manufacturing. China supports localized production

of medicines by Chinese enterprises to comprehensively promote the

independent and sustainable development of pharmaceutical industries in

Africa.

IX. China-Africa cultural and people-to-people plan. China will build

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five cultural centers in Africa and provide satellite TV reception to 10,000

African villages, provide to Africa 2,000 educational opportunities with

diplomas or degrees and 30,000 government scholarships, sponsor visits by

200 African scholars and study trips by 500 young Africans to China, train

1,000 media professionals from Africa, and support the opening of more

direct flights between China and Africa to boost our tourism cooperation.

Policy reading: The relationship between the countries is based on the

affinity of the peoples. People-to-people and cultural exchanges guarantee a

long-term and sustainable development of China-Africa relationship and

China-Africa trade and economic cooperation. China will continue to support

and promote exchanges and cooperation between the cultural and artistic

circles, the press, scholars and think tanks, NGOs, youth, women and workers’

unions, consolidate the basis of China-Africa relationship in public opinions

and society to create a favorable environment for China-Africa cooperation and

carry forward the traditional friendship. To this end, China will cooperate with

Africa in the following commercial areas under the China-Africa cultural and

people-to-people plan:

- Building African cultural centers. Africa has time-honored and splendid

civilization and rich and diversified national cultures. China will continue to

enhance China-Africa cultural exchanges and cooperation, help build 5 African

cultural centers and assist Africa in protecting historical and cultural heritage

with national characteristics.

- Implementing the satellite TV project. To further promote China-Africa

cultural exchanges and people-to-people bonds and enrich people’s lives in

rural Africa, China will mobilize public and private resources and make plans

for installing satellite TV for 10 thousand African villages based on the reality

and cultural needs of rural Africa.

- Providing educational opportunities with diplomas or degrees and

government scholarships. China will provide 2,000 opportunities of

post-graduate and doctoral study at famous Chinese institutes of higher

learning, where majors related to national development including politics,

economics, management, philosophy, history, health, agriculture and

journalism will be available. This move will help strengthen experience

exchange, mutual learning and sharing of development results. In the meantime,

China will increase the number of government scholarships available to African

countries from 18,000 in the past three years to 30,000.

- Training media professionals. To promote cooperation between the

Chinese and African press, China will train 1,000 press people each year by

way of technical assistance and provision of technical services by Chinese

enterprises operating in Africa. The training will cover, among others, radio and

television technology, news gathering and editing, and new media education.

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- Boosting tourism cooperation. Tourism is an emerging industry that

African countries focus on as they capitalize on their advantages; it is also a

new area for China-Africa trade and economic cooperation. China will support

Chinese and African airline companies in establishing more direct flights,

encourage more Chinese citizens to go to African countries for tourism and

consumption, and provide more assistance for investment cooperation in trade

in services including tourism and in developing more tourism products.

To ensure the successful implementation of these ten cooperation plans,

China decides to provide a total of USD 60 billion of funding support. It

includes USD 5 billion of grant and interest-free loans, USD 35 billion of

loans of preferential nature on more favorable terms and export credit line;

an increase of USD 5 billion to the China-Africa Development Fund and

the Special Loan for the Development of African SMEs respectively, etc.,

among which:

For grants and interest-free loans, the African side can keep in close contact

and coordination with Chinese embassies and economic and commercial

counselor’s offices in African countries, propose specific project needs in

industrialization, agriculture, environmental protection, poverty reduction,

health, culture and talent training based on the assistance priorities agreed on

by China and Africa under relevant cooperation plans. The two sides are to

strengthen cooperation throughout the process including project debating,

feasibility study, signing of agreements and project implementation so that

relevant projects can be materialized at an early date to benefit African

countries and peoples.

For loans of preferential nature and export credit line, their types and

amount will be determined based on the reality and the evaluation results of

proposed projects, following the traditional approach used in China-Africa

cooperation which does not allocate the credit on a country-specific basis. The

African side can propose cooperation projects primarily on infrastructure and

capacity cooperation, in view of the confirmed contents of cooperation under

relevant cooperation plans, strengthen sifting of applications in a scientific way,

identify priorities and work together with the Chinese side to ensure that the

projects can be implemented at an early date. At the same time, the Chinese

side will increase the concessional nature of the loans through various ways

and combine loan terms like interest rate and maturity in a flexible way while

taking into consideration the reality of some African countries and specific

projects, so as to highlight the preferential nature of concessional loans.

The China-Africa Development Fund, after three capital increases, stood at

USD 5 billion, and reaches USD 10 billion with the increment of USD 5 billion

this time. At present, the fund invests in various projects in Africa covering

infrastructure, manufacturing, agriculture, industrial parks, etc., plays an

important role in promoting and encouraging Chinese companies to invest in

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Africa, and has yielded good economic and social benefits. The further

expansion of the fund will provide stronger support to China-Africa

cooperation in productivity, investment and trade. (The eligibility criteria and

application process for China-Africa Development Fund is attached in Annex

1)

The Special Loan for the Development of African SMEs stood at USD 1

billion, and reaches USD 6 billion with the increase of USD 5 billion this time.

Currently, the Special Loan has lent to more than 70 projects in Africa,

supporting many medium- and small-sized projects covering the planting and

processing of agricultural produce, light industry and light machinery

manufacturing, small commodities trade, among others, creating many jobs in

Africa and boosting African foreign trade. A significant rise of the credit line of

the Special Loan will provide stronger financial support to the development of

African SMEs and further increase their contribution to the industrialization

and diversified economic development in Africa. (The eligibility criteria and

application process for Special Loan for the Development of African SMEs is

attached in Annex 2)

For the next steps, China and African countries will work together and

coordinate closely, rigorously implement the economic and trade-related items

in the “Ten Cooperation Plans” of FOCAC Johannesburg Summit, finalize the

implementation plans and cooperation plans, advance in a scientific and orderly

way, take China-Africa trade and economic cooperation to the next level and

continuously renew the impetus for the comprehensive strategic and

cooperative partnership between China and Africa.

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Annex 1:

The Eligibility Criteria and Application Process for China-Africa

Development Fund

China-Africa Development Fund (CADFund) is one of the “Eight Measures”

for China-Africa practical cooperation announced by the Chinese government

on the Beijing Summit of the Forum on China-Africa Cooperation. With total

size of US$5 billion, CADFund has committed to invest nearly US$3.2 billion

on more than 80 projects across 35 African countries since its founding. It has

invested in production cooperation fields such as automobile, leather

processing, home appliance, glass, cement, pharmaceuticals, infrastructure such

as power plant, port, maritime transportation and aviation, and a broad range of

areas such as cultivation and processing, digital television, industrial park,

mining, etc. When these projects are completed, they will leverage more than

US$16 billion of investment from Chinese companies to Africa, generate 1

million jobs, US$2 billion of export earnings and US$1 billion of tax revenues

for the local communities. The investments inject vibrancy into the

China-Africa economic and trade cooperation in the new era, create positive

economic and social outcomes, consolidate the foundation for the development

of African economy, strengthen Africa’s capacity to develop on its own and

enhance Africa’s competitiveness in the global economic landscape. Therefore,

CADFund has won widespread praise from the welcoming African countries

and become the main platform for Chinese investment in Africa. At the

Johannesburg Summit of the FOCAC on December, 2015, Chinese President

Xi Jinping announced an additional US$5 billion for the China-Africa

Development Fund, which makes CADFund reach a designed total capital of

US$10 billion. China will continue to give full play to CADFund, which

supports Chinese firms to invest in Africa and seeks Chinese partners for

African projects. Firms meeting the requirements could apply.

Nature of CADFund

CADFund is an Africa-focused equity investment fund launched by the

Chinese government. It upholds the philosophies of sincerity, results, affinity

and good faith in China-Africa cooperation. It operates under the

government-guided, company-centered, market-oriented and win-win

cooperation principles. It focuses on solving the three bottlenecks (inadequate

infrastructure, lack of professional and skilled personnel, and funding shortage)

that Africa faces in its course of development. CADFund supports the

acceleration of the industrialization and agricultural modernization in Africa,

and helps Africa to realize sustainable development on its own. Base on the ten

major cooperation programs and three principles for project selection

(strategically required, financially balanced, and developmentally sustained),

CADFund priorities investments in such areas as Three Networks and

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Industrialization, industrial connection and cooperation in production capacity,

equipment manufacturing, agriculture, livelihood-related fields, industrial park,

etc.

(1) providing capital financing for companies invest in Africa and sharing

risks with them.

(2) providing value-added services and helping companies resolve issues

and difficulties in Africa drawing on its expertise on African countries and

investment climate.

(3) linking African projects with Chinese companies and Chinese partners

with African companies and projects.

Principles of Fund Utilization

CADFund mainly invest in Chinese firms with economic and trade activities in

Africa and African firms and projects invested by Chinese firms. CADFund

does not seek to control or take majority shares. The investment vehicles

include:

(1) Equity investment: directly investment in ordinary shares of a firm or a

project.

(2) Quasi-equity investment: preference shares, convertible bonds, other

hybrid financing instruments.

(3) Fund investment: appropriate scale of investment in other funds as the

fund of funds, as long as in line with the policies of foreign affairs and

economic and trade cooperation.

Eligibility Criteria

CADFund mainly supports Chinese firms investing in Africa and seeks Chinese

partners for African projects. Any firm that fits the following criteria can apply:

a good credit record and at least capacity to investment and finance; a clear

equity structure and management structure, good shareholder relations, and

transparent balance sheet and creditor-debtor relationships; patented technology

or usage rights obtained from other institutions; good market growth potentials

and sustainable profitability; a clear Africa strategy and team with African

experience; an efficient and experienced management team capable of

delivering strategic goals and plans; great influence in the host country and

good relations with government and local companies.

Application Process

Government and other agencies can recommend projects to CADFund.

Enterprises can apply for investment directly. These projects first will enter its

the pipeline. When certain requirements are met, due diligence and project

appraisal will be conducted. Negotiations come next and a project proposal is

written and then deliberated for approval. For approved projects, legal

documents will be signed with partners, disbursements made according to the

progress, and post-investment management till exit.

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Annex 2

The Eligibility Criteria and Application Process for Special Loan for the

Development of African SMEs

The Loan is provided by China Development Bank (CDB) under the

framework of the Forum on China-Africa Cooperation with the purpose of

broadening the financing channels of SMEs, vitalizing local economy, creating

employment opportunities, enlarging trade volume and increasing people’s

living standard. The total size is US$ 6 billion. The Loan is available to all

qualified African SMEs, mainly focuses on supporting SMEs in agriculture,

forestry, animal husbandry, fishing and other livelihood related industry. It is a

symbol of pragmatic China-Africa cooperation and an implementation of

Chinese government commitment.

Main Characteristics

Government Background: The Loan is one of the Eight New Measures

announced by Chinese government at the fourth ministerial meeting of FOCAC

in 2009, intending to help African SMEs ease the financing difficulties and

deepen the cooperation between China and African countries.

Commerciality: The Loan is not governmental aid funds. CDB will follow

commercial principles, and set the price according to the importance of the

project, the credit rating of the borrower and the result of project risk

assessment, etc.

Universality: CDB would carry out the Loan according to the realities of each

country and complying with the principle of “One Country, One Policy”, to

seek to benefit every African country.

Flexibility: The Loan aims to meet various financing needs of SMEs. The loans

could be fixed assets loans or liquidity loans with tenor of no more than 5 years;

currency of the loans can be U.S. dollar, Euro or RMB; floating or fixed

interest rate can be adopted; drawdown and repayment schedule could depend

on negotiation.

Eligibility Criteria

The standard of SMEs set by related department of local government, or the

standard of SMEs set by local market, or being recognized as local SMEs by

related department of local government, or the standard in countries of similar

economic development level in the same region or the standard set by relevant

regional financial institutions.

The Target Sectors the Loan Supports

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Tertiary Industry: Commercial Circulation Service Industry

Infrastructure: Power Agricultural Water Conservancy and Irrigation

Transportation

Basic Industries: Export-oriented Industries, Agriculture, Building Materials,

Deep Processing, Medicine and Health, Telecommunications

Others: Energy Conservation, Environmental Protection, Culture and

Education

Two Models:

On-lending: Government-approved financial institutions or other eligible

institutions of the host country will be chosen as on-lenders shouldering the

responsibility of repayment. CDB would extend proper credit line to on-lender,

to whom local SMEs could apply for credit line. The sovereignty guarantee,

commercial insurance, guarantees by multilateral financial institutions, pledge,

etc. can be accepted.

Direct lending: The applying project is mature and viable with decent

government attention, great market potential, improvement of people’s

livelihood and controllable risk. The borrowers or their holding entities should

be profitable foreign-funded enterprises or joint ventures with a fairly high, to

whom CDB directly issues loans.

Application Documents

Application, Identification of the applicant, Financial report of the applicant,

Project feasibility studies or business plans, Important contracts and legal

instruments related to the project, Relative documents of the credit structure,

Other documents required by CDB.