Recent Economic Cooperation Between China & Lesotho

The 4th China-Lesotho Seminar (Business & Human Resource Development Cooperation) Hosted by Chinese Embassy; Nov.13,2014Mr. Liu Huabo, The Economic & Commercial Counselor of Embassy of P.R. China

20 years resumption of diplomatic relations from January,1994

• Business Relations & Economic Cooperation --- fast growth in Trade, Investment & ODA, ---expended to many fields The basic principles of China: Mutual Respect, Equality, Keeping Promise,

Mutual-Benefits and Win-Win.

Bilateral trade increased very quickly

•2013,Trade volume 100 million US$, 36 times to 1994(China statistics).

•Jan-August,2014.Trade volume 65 million US$

Trade volume & products

• In 2013 Lesotho’s export to China: 11million US$ up 147%

• Exported commodities to China: wool and mohair, textiles, machinery, electrical products, new products like raw diamond.

• Imported from China: Raw materials and products for textile, machinery, electrical and I C T products and components.

More investment from China to Lesotho.

• More Chinese companies or private investment to Lesotho more than 150 millions maloti in the first 8 months 2014.• Investment expended to more industries --Technology, ICT, TV system --Agriculture- Green-house farming investment --Allowance Pharmaceutical Co. Joint-venture between China and Lesotho. --Engineering and construction : Road, Bridges in mountain areas, Water dam and water pipe-line, -- Construction & Real estate of Industrial, Commercial or Residence. -- Manufacture: Construction materials (steel framework, doors, windows,

sand stone products, bricks) ; Textiles, furniture, bedding mattress products --Trade: Import and export business: Food, agriculture machines & technology --Whole-sales: Easy-Gas energy, Supermarkets, Restaurants. --Diamond mine: China Mining company invested to exploit opportunities .

China ODA Increased & Expended to Lesotho

• The framework of South-South cooperation, The Poor helps the poor.

• According to requirements & priority of Lesotho, within China’s best ability, to support to reduce poverty, strength the capacity building, to improve public facilities and Basotho’s livelihood.

China ODA in Agriculture, Education

Agriculture ---2 senior agriculture experts 2 years (2009-2010) ---3 terms JUNCAO (mushrooms) cultivation cooperation from 2007-2015. ---Land use & physical planning technical assistance project (2011-2013) ---Aid of emergency humanitarian food and materials. Food donation to Lesotho 1 million US$/year in recent years through WFP.

Education & Training ---The National Library & Archives Building (2005) ---Two middle schools project(2009) ---China-Lesotho Friendship Middle School from 2013. ---Human Resources Development Cooperation, increased very quickly. 1200+ Basotho participants in China until 2014. ---Food & materials donation to School.

China ODA in Health, Infrastructure

Health: 1997 to 2015, 9 medical teams with total 111 Chinese doctors worked in Lesotho, Queen Elizabeth II Hospital, now Leribe Hospital. --donated more than 10million Maloti medical equipment.

Infrastructure --The Lesotho National Convention Center(1999), & following technical assistance for 4 years. The big maintains and renovation of the Building from 2013. --The New Parliament Building Project( June, 2012). Technical assistance project to the Building operation from 2013. --China-Aid Lesotho New State House starts construction from Nov., 2014.

China’s ODA in Technology & Culture

Technology---China GOV-concessional loan, two phases (60 million US$) to Lesotho Econet Telecom to national Network. Cell phone & telephone lines more than 1.3 million, compared Lesotho population 1.9 million.

Culture ---The Radio and Television Network Expansion Project, lots of modern and advanced TV Station equipment, finished in 2013.

China’s ODA in New Energy, Trade

& More New energy --Solar energy project, built 4.5km street lighting system in three districts of Lesotho. Finished in 2013.

Trade and Industry ---The Botha Bothe Industrial Park.

other:---canceling debts of Lesotho (Chinese government free interest loan).---products originated from Lesotho export to China enjoyed zero-tariff treatment.China’s ODA Increased & Expended in LesothoSome new proposals by two GOVs.: Agriculture, Education, Roads, Energy, Technical assistance, Training and exchange programs, etc.

Benefits to Lesotho: Trade, Investment &ODA from China

• Following the requirements & priority of Lesotho. Support local economic & social development. Strength the capacity building

• Input Capital, Expertise, Management & Marketing skill, Technology.

• Created local jobs: 50,000+.• Created other sectors jobs: food, energy, ICT,

water, consumption, transportation.

Benefits to Lesotho: Trade, Investment &ODA from China -2

• Trained lots of the Basotho employees,• Local unskilled labor or famers -

business persons, professional drivers, machine operators, management officers, clerk, accountants & managers, etc. ---.

• Basotho got job & learned many skills, wages & family income increase continuously.

Win-Win Solution & Common Development

Do something together! Created Better “doing business” climate!Created more trade + more foreign Investment + more development Assistance + more projects = more business, more jobs, more sectors growth, more income, more tax, better Basotho’s livelihood & welfare.Win-Win solution - Common Development

Welcome Suggestions to contribute, to strength the

Cooperation.

Kea leboha ! Thank you!