Business
China opens multilateral approach to Africa with $2bn fundPublish Date: May 23, 2014
China opens multilateral approach to Africa with $2bn fund
  • mail
  • img
China is one of the biggest investors in Africa, especially in the areas of infrastructure and natural resources. Pictured is a view of Beijing. PHOTO/AFP
newvision

KIGALI - China and the African Development Bank (AfDB) agreed Thursday a co-financing fund worth $2 billion over 10 years, a multilateral deal signalling a shift in Beijing's policy of dealing direct with countries.

The deal, Beijing's latest economic push on the continent, sets up the fund between the People's Bank of China and the AfDB to finance "sovereign and non-sovereign guaranteed development projects" totalling some $200 million annually, bank chiefs said.

The shift in setting up a multilateral fund follows criticism by some of China's growing role in Africa, striking deals including cheap loans in exchange for mining rights or construction contracts.

"China is a friend of Africa, they invest in infrastructure, in natural resources," said AfDB president Donald Kaberuka, after inking a memorandum to set up the fund in the Rwandan capital.

"Now this is the first time I believe in Africa, we are taking mainly a multilateral route... and they have done it because they want to assist in the development of Africa," he added.

The fund is named the Africa Growing Together Fund (AGTF), and bank leaders said it was expected to begin financing projects before the end of the year.

"We believe that for the next two decades we are going to see a strong growth... and people here are going to raise their living standards substantially," said Zhou Xiaochuan, governor of the People's Bank of China.

"China would like to be a part of this development."

China's economic growth has been partially fuelled by African natural resources including oil.

The deal follows Chinese Premier Li Keqiang's first tour of Africa tour earlier this month since assuming his position a little over a year ago, a trip seen as seeking to nurture a booming economic relationship.

According to official Chinese data, since 2009, China has been Africa's largest trading partner for five consecutive years and an important source for new investments on the continent.

Li, in a speech to the African Union in Ethiopia, praised the continent's growing economic power, and vowed to double trade to $400 billion (290 billion euros) by 2020.

AFP

RELATED STORIES

China-Africa trade surpassed $200 billion in 2013

Chinese investments in Uganda now at sh1.5 trillion

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Gov’t risks losing billions through advances to foreign companies
A new wave of ethical and professional misconduct has hit Uganda’s construction industry, exposing government to risks of losing billions of funds as contractors connive with employees of banks and insurance companies to obtain fake bid securities and financial guarantees...
UAE Exchange conducts Iftar at Uganda National Mosque
The largest globally networked remittance brand UAE Exchange associated with Xpress Money conducted Iftar at Uganda National Mosque, as they offered food stuffs to Muslim brothers and sisters as a sign of showing the spirit of togetherness during this holy period of Ramadan....
ADB cautions African States against international borrowing
The African Development Bank (ADB) has cautioned African countries against high borrowing rates on the international market saying it could push them back to the 'debt disgrace.'...
URA to collect tax on rented houses, properties
Uganda Revenue Authority has revealed that it will soon begin collecting tax on all rental houses and properties within urban areas....
Danish agribusiness concept to revive farming in Uganda
There is something intriguing about Denmark. A country with so many world records, one of its outstanding ones include ranking first in government transparency and lack of corruption. There are more, like having the world’s happiest population, the world’s highest minimum wage, lots more....
More investments need to be plunged into the agricultural value chain for Uganda to achieve sustainable economic growth and development, Dr. Kisamba-Mugerwa, the chairperson of the National Planning Authority (NPA) has said....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter