For the occasion of the China-African Forum in Beijing, An Yongyu, director of the African Affairs Research Institute and former Chinese ambassador to Namibia and Kenya, reported on the great prospects of the African continent.

On May 30, 1956, China and Egypt established diplomatic relations. This marked the beginning of a new era of relations between China and Africa. For the last 50 years, China and African countries have been building an increasingly respectful, supportive and friendly relationship. It has also been 50 years since the end of colonial rule in Africa, when countries established their own governments and promoted economic development. The economic growth rate has been higher than population growth.

Since the late 1990s, the economic situation in Africa has been changing for the better. African economic growth has been stable at 3 percent for 11 consecutive years, surpassing its population growth rate. Last year, Africa's GDP reached 4.5 percent; it is expected this year to surpass 5 percent and in 2007, 6 percent. Of the 46 southern Saharan countries, 15 have maintained their growth rate at 5 percent for over 10 years. In 2005, Angola's GDP growth rate reached 15.5 percent while Nigeria's reached 6.2 percent. Mozambique, Ethiopia and Uganda have also recorded a 6 to 8 percent GDP growth rate. Gabon and Ghana's growth rate has hovered between 5 and 6 percent after readjusting their domestic policies.

The African investment environment has improved substantially in recent years and foreign investment in the continent has grown. In the past five years, the amount of FDI in Africa has doubled. In 2004 in particular, the amount of FDI reached US$18 billion, three times the total absorbed by Africa in the 1990s.

More countries and regions stop fighting and begin developing

The main reason for the change in African economic development is political stability, a relaxation of tense situations between or within countries and fewer conflicts. In the early 1990s, African economic development was almost at a standstill. In 1992, the continent's GDP growth rate was only 0.9 percent, far lower than population growth. In the 1990s, African people were frequently at war; there was civil war in the Democratic Republic of Congo, Angola, Mozambique, Ethiopia and Eritrea. Today, except in Somalia and the Darfur region of Sudan, most countries and regions in Africa are stable. The key task now is to develop the economy.

On July 9, 2002, the African Union was established after the Organization of African Unity. The union promotes African unity and peaceful development. The means of taking power by military coup has been criticized and abandoned. Internal fighting, rife in the 1990s, has also come to an end. African countries are striving to develop economically and socially. Various countries have tried to build a new African development partnership program within the framework of the African Union. They have been working hard to develop their own specific development programs to eliminate poverty.

Great potential and bright future

Africa is a continent with rich natural resources; it has great development potential and a bright future. Africa is not the continent so often portrayed as poor, dirty and backward. Africa is over 30 million square kilometers in size; 21 percent of the continent has forest coverage and 27 percent is grassland. It has rich water resources which account for 40 percent of the world's total. Africa has been dubbed as a natural resources storehouse. Africa is also rich in minerals and strategic materials. They have far greater deposits of these than other continents. According to the International Mineral Association, Africa's platinum, chrome, manganese and iridium deposits account for 80 percent of the world's total. The continent has 60 percent of the world's diamonds and 50 percent of the world's gold, phosphate, cobalt and palladium. Africa's uranium, tantalum, cesium, zirconium, hafnium and graphite account for 30 percent of the world total and copper for 20 percent. The known amount of oil has reached 114.27 billion barrels, accounting for 9.5 percent of the world's total, second only to the Middle East. Currently, the daily output of crude oil in Africa is 9.83 million barrels. In 2005, crude oil production reached 467 million tons, accounting for 12 percent of the world's total, 79 percent of which was exported. In recent years, the price of oil has increased by approximately 90 percent and mineral products by 70 percent. These factors have greatly benefited the 20 oil exporting countries and other mineral exporting countries in Africa.

By People's Daily Online