2023-10-23 19:56:29
The African Export-Import Bank (Afreximbank) is preparing to receive significant Chinese financing to boost the new Silk Road. According to the Ecofin agency, the China Export and Import Bank (CEXIM) plans to grant a loan of 600 million US dollars, or around 330 billion FCFA, with the aim of stimulating trade in Africa.
This loan aims to facilitate and finance commercial and economic cooperation between Afreximbank member countries and the People’s Republic of China, while strengthening financial cooperation between the two parties. The targeted areas include credit activities, equity investments, capital market operations, trade finance, personnel exchange and knowledge sharing, according to the Ecofin report.
Despite the challenges linked to the Covid-19 pandemic, Chinese investments in Africa are regaining importance and becoming one of Beijing’s priorities for the years to come. As such, President Xi Jinping announced new investments of US$100 billion for developing countries during the 10th anniversary of the Belt and Road Initiative (BRI). Afreximbank, as one of Africa’s leading multilateral trade finance institutions, is seen by Beijing as a key player in investment on the continent.
The institution has already benefited from several financing from China, notably a loan of 400 million US dollars (220 billion FCFA) in August 2023 to support SMEs, which play a major role in the African industrial and commercial fabric. This new agreement of 330 billion FCFA, according to Ecofin, is a concrete measure taken by CEXIM to promote high-quality cooperation within the framework of the “Belt and Road” initiative and to implement the nine programs within the framework of the Forum on China-Africa Cooperation, as indicated by Shengjun Ren, president of the Chinese institution.
It should also be noted that Chinese initiatives to strengthen economic and commercial cooperation with Africa have increased in recent years. In 2022, trade between China and Africa reached US$282 billion, making Beijing the continent’s largest trading partner.
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