China, World Bank set sights on Africa

4 Dec 2009, 2:58 pm   -   Source: AAP
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China and the World Bank are holding talks on setting up low-cost factories in new industrial zones in Africa, bank president Robert Zoellick said on Friday.

China and the World Bank are in talks on setting up low-cost factories in new industrial zones in Africa to help nations achieve higher economic growth, bank president Robert Zoellick said on Friday.

Zoellick said Beijing had shown "strong interest" in proposals to establish manufacturing operations to reverse Africa's declining share of global trade and to achieve growth paths similar to those in some Asian nations.

"There is not only willingness but strong interest among some in China. And I've discussed with the minister of commerce, Chen Deming, that there may be possibilities of moving some of the lower-value manufacturing facilities to sub-Saharan Africa - toys or footwear," Zoellick told the Financial Times.

China last month pledged $US10 billion ($A10.78 billion) in concessional loans to African states and a promise to remove tariffs on most goods from the least developed countries.

Chinese Prime Minister Wen Jiabao said the loans would focus on reducing poverty and aid for infrastructure and agriculture in Africa.

The pledges were welcomed in Africa, but China is fighting off accusations it is interested in Africa only for its resources, including oil, to fuel a booming economy.

China has also been accused of throwing a lifeline to African regimes accused of human rights violations and that its loans create further debt among developing nations on the continent.

And some African leaders have voiced concern that China's competition in producing goods such as textiles and shoes was undercutting Africa's weak industrial base, the newspaper said.

Zoellick said African nations needed to build the infrastructure, such as power and transport, to attract the Chinese investment.

"One of the challenges for Africa, if you want to follow a model or growth of east Asia or south Asia, is starting a manufacturing platform," he said.

"Some of these Chinese industries have the benefit of knowing how to do more labour intensive manufacturing and they have the marketing networks and this is always a challenge when you start an operation."

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