African economic expansion is set to accelerate this year from an already high rate due to greater global demand for minerals and rising oil production in southern and central Africa, a report published on Tuesday said.

African gross domestic product is likely to rise 5.8 % in 2006 and 5.5 % in 2007 after nearly 5 % in 2005, with China playing an increasing role there, says the report by the Organisation for Economic Cooperation and Development (OEDC).

“Overall, the outlook for much of Africa continues to be more favourable than it has been for many years,” the report by the Paris-based organisation, covering 30 countries in Africa, said.

The growth rate of 5.8 percent compares with a global economic growth rate forecast by the International Monetary Fund to reach 4.9 percent this year, versus 4.3 percent last year.

The IMF, the Washington-based public lending agency, has in recent months been highlighting a renewal of interest in Africa, mainly from Japanese and European banks keen to get a foothold in the countries that are rich in metals and oil.

China was now making major inroads in some places, the OECD report said, citing a deal whereby Angola got a 17-year loan of $ 2 billion from Chinese state lender Eximbank at low interest rates on condition that it use it to buy goods from China.

Chinese firms, whose offers often undercut South African and European rivals by up to 50 percent, accounted for one third of the work contracted out on a major road-building project in Mozambique, OECD said.