Emmet Stagg (Kildare North, Labour)
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Question 119: To ask the Minister for Foreign Affairs his views on the recently announced increased investment by China in terms of overseas aid and investment in Africa; the implications this development may hold; and if he will make a statement on the matter. [41931/09]

Peter Power (Limerick East, Fianna Fail)
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China's overseas aid and investment in Africa has increased substantially in the past decade, and this has presented an opportunity for developing countries in Africa to progress towards the attainment of the Millennium Development Goals. This is to be welcomed. I am aware, however, of the apparent contrast between what has been perceived as the commercial focus of China's policy in relation to Africa and the primary focus of Ireland and the EU on development issues including poverty reduction, human rights and good governance. However, there are signs that China is increasingly aware of the importance of peace and stability in Africa, and as such, there are areas of shared interest with Ireland and the EU. An EU-China political dialogue on Africa commenced in 2007 at official level, and is a useful process.

As the Deputy will be aware, the recently concluded 4th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) in Egypt saw China announce new measures to enhance cooperation with Africa. These measures are focused on helping African countries overcome the financial crisis, and also on long-term strategic areas such as improving living standards and sustainable development. China will provide US$10 billion in concessional loans to African countries and support Chinese financial institutions in setting up a special loan of US$1 billion for small and medium-sized African businesses.

This is obviously a landmark development and builds upon the strengthening relations between China and Africa in recent years. Trade between Africa and China has grown an average of 30% per annum in the past decade, topping US$106 billion last year. China has a large contribution to make to the sharing of experience on the reduction of poverty, including in some key areas for Africa such as raising agricultural productivity and harnessing international trade and investment for the benefit of poor people. The Organisation for Economic Cooperation and Development (OECD) is now actively engaging with China as part of its "Enhanced Engagement" programme with Brazil, China, India, Indonesia and South Africa. This has led to the recent formation of the China-Development Assistance Committee (DAC) Study Group. The spirit of the Study Group is joint learning as the basis for discussing some central development issues.

We need to be able to reach out to new donors such as China in ensuring that aid effectiveness is strengthened on the ground in developing countries in Africa, and that investment where it does occur takes place in a transparent manner, and benefits the citizens of the country where that investment occurs