On Monday, Egypt’s trade ministry announced that it has entered into a cooperation agreement with China for the exploration and implementation of 18 economic infrastructure projects within the power, transport and industry sectors.
China to support economic infrastructure
The agreement, which states that these projects will be supported through Chinese funds, was signed during a joint meeting of the Chinese-Egypt Ministerial Committee in Beijing, Aswatmasriya reported.
Media reported that the signatories on the Egyptian side were the Minister of Trade and Industry, Tarek Kabil, and Secretary of State Investment, Dalia Khorshid; while on the Chinese side, the Minister for the Development and Reform Commission, Ning Gizh, and the Vice Minister of Commerce, Ken Kimnj, signed the agreement.
[quote]Kabil said in a statement that the projects include industrial investments in the fields of textile industries, manufacturing of electronics, animal feed and flat glass in addition to the creation of a phosphate complex.
The International Energy Agency (IEA) recently released a report noting that China is responsible for 30% of new capacity additions in the region over the last five years.
The publication, ‘Boosting the Power Sector in Sub-Saharan Africa: China’s Involvement’, identifies project investments estimated at $13 billion between 2010 and 2015 from China, which according to the IEA were financed largely through public lending from China.
Deputy Executive Director of the IEA, Paul Simons, said: “African countries have relied heavily on China to support the expansion of their electricity systems, to enable growth and improve living standards.”
The energy agency added that Greenfield power projects contracted to Chinese companies have become widespread in the region, with more than half of all projects based on renewable energy, mainly hydropower.