China provides rural development assistance to Africa in the following ways: 1) Through infrastructure projects focused on transportation, energy, water and agriculture that are financed by policy banks like China Exim Bank and China Development Bank. 2) By sending agricultural experts and building demonstration sites, schools, and hospitals to support rural communities. 3) With commitments made at forums like the Forum on China-Africa Cooperation to provide funds, loans, debt relief and export credits for projects.

1. How China delivers rural development assistance to Africa Hannah Edinger Economist Centre for Chinese Studies University of Stellenbosch 2 nd July 2008 Brussels, Belgium

13. EXIM Bank and CADFund projects (2000-Feb 2008)

16. China’s agricultural and rural development assistance (May 07-June 08) Country Assistance Angola Dam and irrigation channel to create high production agricultural area; to benefit 116,000 rural workers grouped into 60 farming associations and cooperatives; training of 60 agric technicians by 2010; reconstructing water supply system ; irrigation contract in 4 regions DRC Built a vegetable demonstration station ; agriculture cooperation since 1973; eg. planting rice and vegetables; infrastructure rehabilitation plan : 3200km of railway tracks, 3300km of paved roads, 2700km of beaten earth roads, 550km of urban roadways, two airports, two hydroelectric dams and two electricity distribution networks, 170 hospitals and health centres, two vocational training centres. Ethiopia Agriculture , tourism and infrastructure cooperation for past 3 decades. Ghana Economic activities in Bui area to increase with Bui Dam project; rural employment opportunities; benefits for fisheries, tourism and irrigation ; electricity supply security to rural north; i rrigation potential of 30,000 ha and sites downstream for agricultural development, eco-tourism and fisheries Kenya CDB credit line promised for housing, education and health care services to improve the livelihood; modernisation of electricity distribution and rural telecommunications project ; China as export market of Kenyan coffee

17. China’s agricultural and rural development assistance (May 07-June 08) Country Assistance Liberia Funding for hospital construction Nigeria Assistance with development of commercial livestock production ; construction of 598 boreholes to boost water supply in 18 states Malawi Concessional financing for 2 rural schools has been promised Mozambique Over 40 Chinese companies focusing on agro-industry, aquaculture , among other things; agreement to boost transfer of agricultural technology and promote innovation ; China supports the agricultural research and technology transfer centre at Umbeluzi and a Technology Park in Moamba, both in Maputo province; pledged to build Agricultural Technology Centre Senegal 3 cooperation agreements for provision & construction of rural schools , electricity supply Sierra Leone Assistance to build 100-bed hospital in Freetown; anti-malaria center, education financing: two rural schools ; Chinese Agricultural and Technical team will assist to cultivate rice varieties; 18 Chinese agricultural experts to assist farmers in different regions South Africa Commitment to build agricultural demonstration centre

18. China’s agricultural and rural development assistance (May 07-June 08) Country Assistance Sudan Grants and interest-free loan for agricultural demonstration centre ; to send Chinese agricultural experts to Sudan; possibilities in agriculture… beyond investment in oil projects Zambia Downstream irrigation benefits from the construction of hydro project Zimbabwe Plentiful agriculture-related programmes ; loan facility for local agro-business to implement the second phase of the farm mechanisation programme -> boost agricultural production; construction of a hospital , two rural schools and an agricultural demonstration centre ; previously provision of fertiliser and farm equipment/machinery to replaced damaged equipment, including 424 tractors and 50 trucks; part of $50mn loan backed by tobacco. Africa Nanjing Agricultural University offers classes to African agric officials on rural and development reform of agriculture; trained many agricultural experts in Africa Africa Poverty reduction experience shared at workshops such as the The Experience Sharing Programme on Development between China and Africa in Beijing; draws on success and progress of Chinese economy and poverty reduction, reforms and development in rural areas, infrastructure construction etc. Africa Visits to provinces, Gansu province, for African officials to draw on experiences of poverty reduction programmes coordinated by China International Poverty Alleviation Center

19. EXIM Bank financed dams/ Chinese construction Year Country Dam Cost MW 2008 Botswana Dikgatlhong Dam $250mn 5000 2008 DRC Grand Inga Dam $50-80bn 39000-50000 2008 Gabon Grand Poubara Dam $622mn 400 2007 Ghana Bui Dam $600mn 400 2007 Guinea Bissau Salthino Dam $60mn 2007 Mozambique Mphanda Nkuwa Dam $2bn 1350 2007 Sudan Merowe Dam $2bn 1250 2007 WAPP 2006 Nigeria Mambilla Dam $1.4bn 2600 2003 Zambia Lower Kafue Gorge Dam $600mn 750 2002 Ethiopia Tekeze Dam $224mn 100 2002 Morocco Ifrane Dam $50mn

20. Recommendations African Countries China Traditional Donors Understand China’s approach to aid Managing aid policy Working towards constructive partnerships REC Coordination Cooperation with traditional donors Donor Harmonisation Avoid dividing traditional & emerging donors Greater transparency Strengthening goal 8 of the MDGs Strengthening African voice Broadening FOCAC Constituency Avoiding politicisation Improving reporting mechanism and monitoring Engaging Africa institutions -

21. Thank you Hannah Edinger [email_address] Centre for Chinese Studies Centre for Chinese Studies University of Stellenbosch Johannesburg Office T +27 21 808 2840 T +27 11 728 1509 F +27 21 808 2841 F + 27 11 728 0373 E ccsinfo@sun.ac.za E ccsinfo@sun.ac.za W www.ccs.org.za W www.ccs.org.za