Economy

China Exim Bank eyes Africa loans, commodity focus

(Agencies)
Updated: 2010-11-23 14:05

LUXEMBOURG - The Export-Import Bank of China sees plenty of opportunity to extend loans in Africa, focussing on raw materials and oil, while commercial banks are steering clear of the risk, its chief executive said on Monday.

"There are a lot of areas to operate - particularly in the raw materials and oil sector. Certainly this is the area we will focus on," Exim Bank Chairman Li Ruogu told European and Chinese executives, bankers and officials meeting in Luxembourg.

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"China does not interfere in the internal affairs of Africa. What we want to do is foster their own development capacity," Li told the conference.

Exim Bank is one of China's three policy banks that extend credit in line with government initiatives.

"Very few foreign commercial banks are considering providing finance in Africa. They may see the risk aspects more than they see the benefits," Li told Reuters.

"We take a long-term view. We don't expect profits this year or next year; we see things in decades," he said.

"If the Europeans follow the Chinese example they may have an opportunity in Africa," Li added.

He said Exim Bank would also focus on Africa's agriculture sector, where it sees a potential for recovery and future exports, potentially supplying China's booming demand for basic commodities.