China’s decision to extend a total of $60 billion in financial support to Africa has been hailed a triumph by African politicians and economists, with Akinwumi Adesina, President of the African Development Bank Group, stressing that the money is to be primarily used in energy and agricultural sectors.
“When talking about the $60 billion of financing to Africa, we see many alignments with African Development Bank’s five development priorities, especially in ‘lighting up and powering Africa’ and ‘feeding Africa’. I think the money will be primarily used in those areas,” Adesina told the media during the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) on Tuesday.
Adesina’s remarks come after President Xi delivered a keynote speech during the opening ceremony of the FOCAC on Monday, reiterating that the financing will be provided in the form of government assistance as well as investment from financial institutions and companies.
According to Xinhua News Agency, the financing includes $15 billion in grants, interest-free loans and concessional loans, $20 billion of credit lines, the setting up of a $10 billion special fund for financial development and a $5 billion fund to help finance African imports. Chinese companies are also encouraged to make at least $10 billion worth of investment in Africa over the next three years.
“Energy is Africa's number one priority, as it serves as the foundation of the continent’s industrialization and development, while feeding a populous continent like Africa requires more investment. I’m looking forward to the cooperation between the African Development Bank and its Chinese counterparts, in an effort to use the money wisely,” said Adesina.
In addition to financial support, Adesina also noted that China can cooperate with African countries further under the framework of the Belt and Road Initiative, which may create more opportunities for both sides.
“The Belt and Road Initiative will not only benefit Africa in infrastructure construction, but also in energy sectors. I’m a big supporter of the BRI, which will close the infrastructure and energy gap in Africa,” said Adesina.
According to Xinhua, China has honored its 2015 promise to provide Africa with funding support totaling $60 billion, with financing either already being delivered or arranged. China decided to provide the funding support at the FOCAC Johannesburg summit to ensure the successful implementation of ten China-Africa cooperation plans decided at the same summit.
Editor:Cherie
