Africa and China need to expand trade and increase investment in order to boost their common economic growth, said Algerian President Abdelaziz Bouteflika Saturday.

While expanding trade is one of the prior goals in Africa-China cooperation, investment is crucial in achieving these goals, particularly investment in agriculture, infrastructure, energy and new technology sectors, Bouteflika told Chinese and African delegates attending the High-level Dialogue and 2nd Conference of Chinese and African Entrepreneurs, held on the sidelines of a historic China-Africa summit.

In contrast with China's rapid economic growth, Africa still faces challenges and obstacles in its own development, he said.

As a result of unbalanced economic growth and regional differences, some African regions have difficulties in employment, education, social security and health care, said Bouteflika, adding that African countries need Chinese companies' technologies, capital and management expertise.

The president marveled at China's reform and rapid economic growth, saying that China's experience is exemplary. He also called African and Chinese business people to play a larger role in boosting bilateral exchanges and serving their mutual best interest.

Chinese Premier Wen Jiabao proposed at the entrepreneurs' conference that China and Africa should bring their trade volume to 100 billion U.S. dollars by 2010.

In the first nine months of this year, China-Africa trade surged to 40.6 billion U.S. dollars, up 42 percent over the same period of 2005.

At the Beijing Summit of the Forum on China-Africa Cooperation that opened Saturday morning, Chinese President Hu Jintao said China will provide 3 billion U.S. dollars in preferential loans and 2 billion U.S. dollars of preferential buyer's credits to Africa over the next three years and establish a special fund of 5 billion U.S. dollars to encourage Chinese investment in Africa.

Bouteflika is among 41 African heads of state or government, senior officials from 48 African countries and delegates from regional and international organizations to attend the two-day summit, the largest gathering between Chinese and African leaders.

Prior to his departure for China, Bouteflika said the summit will become an effective platform for enhancing mutual understanding among the developing countries.

Source: Xinhua