SHARM EL-SHEIKH, Egypt, Nov 8, 2009 (AFP) - Chinese Prime Minister Wen Jiabao pledged to give African countries 10 billion dollars (S$13.9 billion) in concessional loans as a two-daay Forum on China-Africa Cooperation opened in Egypt on Sunday.

"We will help Africa build up its financing capabilities... we will provide 10 billion US dollars for Africa in concessional loans," Wen said at the start of the forum in the Red Sea resort of Sharm el-Sheikh.

He also pledged to cancel debts of African countries to deepen his country's role in the continent.

The Asian giant pledged 5.0 billion dollars in assistance at the last Forum on China-Africa Cooperation summit, held in Beijing in 2006, and has signed agreements to relieve or cancel the debt of 31 African countries.

"China is ready to deepen practical cooperation in Africa," Wen said, adding that China was prepared to take on a role in "the settlement of issues of peace and security."

He also said China would set up environmental projects in the continent, including 100 clean energy projects.

Chinese firms have been pouring investments into oil and other raw materials in Africa to fuel the Asian country's booming economy.

Over the past five years, Chinese direct investment in Africa has soared, from 491 million dollars in 2003 to 7.8 billion dollars in 2008, according to official Chinese figures.