Beijing, 1 April 2016: – The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (China Eximbank) are to develop a new $1 billion-dollar investment and industrialization programme to help accelerate Africa’s industrialization and enhance trade between the continent and China.
The programme, to be implemented in the context of the plan announced by President Xi Jinping of China to dedicate $60 billion towards Africa’s industrialization in the next 10 years, will be operated as a co-branded product by China Eximbank and Afreximbank.
Discussing the programme with Liu Liange, President of China Eximbank, during their recent meeting in Beijing, Afreximbank President Dr. Benedict Oramah said that it was aimed at enhancing the capacity of the two institutions to jointly finance projects aimed at boosting Africa’s manufacturing capacity. It would focus on such activities as development and operation of industrial parks and special economic zones, light manufacturing, and processing of primary commodities.
It would also aid the establishment of heavy industries which support manufacturing; the provision of logistics to facilitate intra-regional trade; and the development of trade facilitating infrastructure. In addition, it would encourage investment by Chinese companies in manufacturing in Africa, which could help the African countries to fully utilize market access opportunities available under various trade agreements.
According to Dr. Oramah, Afreximbank will identify the projects under the programme while China Eximbank will find the Chinese firms to help deliver them.
Details are still in further discussion between the two institutions and updates are to be embodied in a memorandum of understanding which is anticipated to be signed in the foreseeable future.
Dr. Oramah commended China’s support for Africa’s industrialization and said that the tremendous growth achieved by Africa in recent years owed a lot to the expanded trade and economic cooperation with China.
Also speaking, China Eximbank President Liu Liange pledged his organisation’s commitment to working with Afreximbank to boost Africa’s economic development and increase trade with China. He said that joint programmes and projects between the two institutions would enhance their ability to achieve their mandates.
He welcomed the long standing good relations existing between the two institutions and said that China Eximbank was ready, positive and confident about working with Afreximbank for Africa’s economic development.
Presidents Oramah and Liu had met as part of consultations aimed at strengthening relations between Afreximbank and China Eximbank.