Chinese president leaves Zambia, en route to Namibia

Feb 5, 2007, 8:30 GMT

Lusaka - Chinese President Hu Jintao departed Zambia Monday morning for Namibia, the fifth stop on his 10-day tour of eight African countries, during which he is seeking to expand Chinese trade and investment in the region.

Hu and his Zambian counterpart Levy Mwanawasa on Sunday unveiled an 800-million-dollar Chinese investment package centred on the creation of a special economic zone that the Zambian leader said would create 60,000 jobs.

Some 200 Chinese firms already have investments in Zambia. Chinese firms will operate free of import duties and VAT in the economic zone.

During his visit, Hu visited the Chinese-owned Chambishi Mine in Zambia's Copper Belt region north of Lusaka where a new 200-million-dollar smelter is planned.

The Zambian and Chinese leaders signed a total of eight cooperation agreements on aid and investment.

These included agreements on Chinese technical training for Zambian agriculture experts, an interest-free loan towards road- making equipment, the building of two rural schools and a football stadium, special treatment for Zambian exports to China and work permits for Chinese workers.

China also agreed to write off over 3 million dollars Zambia owes Beijing.

Hu met Zambia's founding father, Kenneth Kaunda, describing him as an inspiration to the liberation struggle in Africa and Southern Africa in particular.

Kaunda was the first Southern African leader to open diplomatic relations with China 43 years ago upon attaining independence from Britain, Hu noted.

Kaunda, for his part, described China as an all-weather friend of Zambia.

While welcoming the cooperation with China Zambians are worried that buried in the fine print of the deals could be conditions detrimental to Zambian interests.

Workers at a Chinese-owned mine rioted last year over working conditions.

Zambians also fear the threat to local manufacturing from cheap Chinese imports, for example in textiles. An agreement signed Saturday allows Zambian goods improved access to Chinese markets, increasing the number of tariff-free items from 190 to 400.

Hu is the first Chinese head of state to visit Zambia since independence. Opposition politicians critical of China were kept at bay during his visit.