China’s promise of an $8 billion loan for infrastructure, agriculture and other development projects has given South Sudan a much needed breather from its financial woes.
China made the loan offer following South Sudan President Salva Kiir’s recent visit to the Asian country, Reuters says. The money will be disbursed over the next two years to finance projects that will be conducted by Chinese companies — in line with China’s long-standing aid approach in Africa.
The loan could help ease some of South Sudan’s financial woes, which stem from its halted oil production industry. The shutdown of the country’s oil sector is connected to the ongoing conflict between South Sudan and Sudan. China is a major investor in South Sudan’s oilfield but is also a major supporter of Sudan.
Read more:
The building BRICs: Analyzing the role of the BRIC countries in foreign aid and global development
China’s foreign aid strategy part 1: Western donors embrace China for African development
China’s foreign aid strategy part 3: China moves to enhance aid transparency
China’s foreign aid strategy part 5: Partnership opportunities in Chinese development cooperation
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