China has taken a new step in building a relationship with African countries. China's has pledged to grant African countries $10 billion in low-interest development loans over the next three years, which usually comes with the agreement that African nations will spend the money on Chinese goods and services. Also they plan on forgiving the debt on certain previous interest-free loans granted to less-developed African countries, along with a $1 billion dollar loan program for small and medium-sized businesses. China also plans on addressing the climate change issues by building 100 clean-energy projects across the continent. China's motive can be found in a strengthening of trade with arguably the most resource rich continents in the world and creates a flow of money back into their economy from these loans. Both nations will benefit from this pledge and China has made won this relationship over Western lenders because they don't demand an improvement of governance.
By. Paul Yuccas
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