The Fitch Ratings report has revealed that Export-Import Bank of China has lent more money to Sub Saharan Africa from 2001 to 2010 than the World Bank. Chinese bank gave $67.2 billion to the country in the aforementioned period, while the World Bank gave $54.7 billion.

The EXIM Bank gave an additional $12.5 billion than the World Bank. But, there is a reason behind it. It is said that China is extending help, so that it could strengthen its ties with Africa for setting up a market there. By lending help, it wants to secure access to their raw material as well as want to start export import trade with Africa.

So in order to get what they desire, they are providing African Government the much needed financial help so that they could develop their economies. They have also made flexible loan conditions for African Government so they do not have any problem while dealing with them.

In return, Africa also finds it easy to take loan from China as the World Bank and International Monetary Fund have stringent loan conditions.

Talking about the same, the Fitch report said, “Absence of political strings, competitive interest rates and flexible repayment schedules compared with Western counterparts, makes China’s loans highly attractive”.

Fitch further affirmed that it is expected that about 20% of EXIM bank’s total business volume is dealt with Africa. However, Angola, Ethiopia, Nigeria and Sudan are some other places which, since a real long time, have been taking loans from EXIM.

Chinese loans given to Sub Saharan Africa is said to be exceeding Asia’s foreign direct investment limit with cumulative investment, reaching $11 billion in 2010. The majority of loans are being utilized for infrastructure projects. This support could help Africa to develop at a faster pace in less time, said Fitch.