PORT LOUIS, July 21: Mauritius is set to benefit from $113 million in cheap Chinese loans and grants to develop roads and communications, the Indian Ocean island’s prime minister said on Saturday.

Speaking to Reuters less than a week after visiting China, Navin Ramgoolam said the trip had also yielded the promise of a series of private sector investments.

“China has put at our disposal 3.5 billion rupees ($113.1m), so that we can proceed with our development plans especially on infrastructure,” he said in an interview.

Ramgoolam said although Mauritius -- with a population of 1.3 million people and a roughly $6.5 billion economy -- was a minnow next to China, it offered advantages for investors.

The politically stable nation is working hard to improve its investment climate. As a member of trade blocs such as COMESA and SADC, it offers a gateway to African markets.

“That gives China a springboard for entry into Africa,” Ramgoolam said.

One of his aides said several Chinese companies were expected to invest or to increase their investment in Mauritius, and may use some of the $10 billion of development funds that China has earmarked for Africa.

He said China’s State Administration of Foreign Exchange is set to invest in Mauritian treasury bonds, while the China Development Bank planned to open an office in Mauritius.Construction was due to begin in October on a planned $500 million Chinese investment to build a trade development zone -- the largest ever foreign direct investment into Mauritius.

Ramgoolam said despite his country’s lack of natural resources, he had persuaded Beijing to adopt Mauritius as a focus of Chinese investment in Africa.

“It was a question of persuasion, but you have to build on the relationship that you have,” he said, noting Mauritius’ decision in 1972 to support Beijing with its one-China policy.—Reuters