 It's no secret that China wants to do business in Africa. If you look at trade or investment or development finance, it's all sharply on the rise. And China has a lot to offer, big markets, strong demand for African commodities, and 3.5 trillion in foreign reserves that could be used to finance projects that could get good returns. Africa is a big source of commodities going into China. We've been talking a lot about oil, and if you look at the countries that in 2011 were sending oil to China, Angola was the second there, and Sudan was a little bit further along, but they're two important suppliers. But it's not just oil. Africa is supplying a number of other commodities, copper, diamonds, even cocoa and cotton. But Africa is not an easy place to do business. Risks are high, political instability, corruption. But maybe the most important problem from Chinese company's perspective is the poor infrastructure in Africa. The World Bank says that African government should be spending $93 billion per year on infrastructure, and they're spending half of that. Only 12% of the roads in Africa are even paved. Energy production is really abysmal. The entire continent produces south of the Saperra about the same amount of electricity that is produced by Spain. What about foreign aid? Aren't they providing some help in this area for Africa's infrastructure? Well, actually very little. Only about 10% of the foreign aid going into Africa pays for infrastructure. The rest of it is going into health and social services and other areas like that. Is there another way? African governments by and large in increasing numbers are becoming resource rich. We're finding oil production in Ghana. They don't become an oil exporter. We see Mozambique becoming a major supplier of gas. In Kenya and Tanzania and other places, we're now putting them on the map as producers of energy. But being a natural resource rich poor country comes with a lot of risks. It's risk for political stability. It's risk for corruption, Dutch disease. And there's an association between being a resource rich country and being one that's embroiled in conflict or even civil war. So is there another way that African governments can make use of their resources? A way that governments and leaders can tie their hands against the demands of patronage and corruption and cronyism. A way that they can use those resources to rebuild the infrastructure, the roads, the bridges, the power plants that they need for development. There is another way. And we can take a step back in history to find it. In the 1970s when China was emerging into the market, they needed infrastructure and they didn't have finance or the technology for the modern infrastructure they wanted. And soon they had a visit from Japan, which had both the technology and the finance. So China couldn't get capital on capital markets, but Japan made them a line of credit worth $10 billion and China, which was already supplying oil to Japan, repaid that credit with its oil. China's using the same model in Africa today. In Angola, for example, which endured 27 years of civil war, Chinese banks came in in 2003 and 2004 and started financing infrastructure with lines of credit. Now, Angola needed everything, but the kinds of lines of credit that they were already getting from Western banks like Banco Espritosanto and Standard Charter Barclays were also being repaid for oil, but they were going to rebuild the oil industry and not to rebuild Angola's infrastructure. So China Exxon Bank, when it came in, had a different idea. They said we can provide the credit, Chinese companies can get the projects, and Angola can rebuild its infrastructure. And so this worked very well. In the first billion dollar tranche of money that came from China Exxon Bank, they financed 40 infrastructure projects. They redid the electricity grid in Luanda. They built seven technical colleges, vocational technical colleges. They rehabilitated six hospitals. They built a 211 kilometer road and repaired five bridges. So that was a lot of infrastructure, and all of it was repaid with oil. Angola was getting a pretty good deal on this. It's not just Angola that's doing this. Research that we're carrying out at SICE has identified more than 10 African countries and more than $25 billion in this commodity financed infrastructure package deals. And it's not just oil that's going to repay these. These are financing and securing these infrastructure loans with cocoa, with sesame seeds, with copper. Now this kind of package financing has risks. We can't stop kickbacks. We can't stop collusive bidding. These projects come with the need for maintenance. And they could be done for political effect rather than just purely economic. But they have a benefit as well. They enable African leaders beset by patronage demands to tie their hands. They're an agency of restraint. They enable natural resource exports like oil to be used for development. And that's a good idea. Thank you.