Country expects $1B in deals with China at Africa summit

December 1, 2015 7:42 AM

Chinese firms have invested heavily in mining and other sectors in the southern African nation over the last 10 years with investment exceeding $3 billion in 2014, according to latest Chinese embassy estimates.

Zambia's President Edgar Lungu (L) and China's President Xi Jinping listen to their national anthems during a welcoming ceremony at the Great Hall of the People in Beijing, March 30, 2015. REUTERS/Jason Lee

Zambia expects to clinch $1 billion in Chinese investment and loans at this week's China-Africa summit in Johannesburg, a presidential spokesman said on Tuesday.

Presidential spokesman Amos Chanda said Zambia was expected to conclude deals with China in infrastructure projects such as roads, railways, power generation as well as agriculture.

Zambia and China were also likely to sign an agreement for the construction of two modern hospitals, Chanda said.

"These deals should add up to over $1 billion," he told Reuters.

An electricity shortage and weaker copper prices have put pressure on Zambia's mining industry, threatening output, jobs and economic growth in Africa's No. 2 copper producer.

China plans to invest a further $900 million over the next five years in an economic zone, where firms would be exempted from some taxes such as customs duties.