Africa gets China’s vote of confidence
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As the bond between Africa and China strengthens, global leaders and investors will follow suit in trusting the opportunities available across the continent.
As the bond between Africa and China strengthens, global leaders and investors will follow suit in trusting the opportunities available across the continent.
At the China-Africa summit in December 2015, Chinese President Xi Jinping announced ‘10 major plans’ to increase collaboration with Africa over the next three years.
The initiatives cover the areas of industrialization, agricultural modernization, infrastructure, financial services, green development, trade and investment facilitation, poverty reduction and public welfare, public health, people-to-people exchanges, and peace and security.
To ensure smooth implementation of the initiatives, Xi announced, China will offer $60bn of funding support, including $5bn of free aid and interest-free loans, $35bn of preferential loans and export credit on more favorable terms, $5bn of additional capital for the China-Africa Development Fund and the Special Loan for the Development of African SMEs each, and a China-Africa production capacity cooperation fund with the initial capital of $10bn.
Xi Jinping emphasized how China and Africa share a common future, and commended the unity that the Chinese and Africans have forged over the years.
In East Africa, Rwanda offers investment opportunities and is amongst the region’s fastest growing economies.
The country has been frequently on top rankings for the best place to do business and to invest in Africa, with an average GDP growth of 8% for the last decade.
Francis Gatare, CEO of the Rwanda Development Board (RDB), said: “The recent relations between China and Africa are a clear indication of the continent’s untapped potential to be a world power. No longer does the world stage view Africa as a continent that needs to be saved, with China, the world’s second largest economy taking Africa seriously, is a testament of that.”
“Investors and nations alike are tracking the Chinese vote of confidence and following through with investment deals,” he said.
This September, the Global African Investment Summit COMESA & Government of Rwanda will commence in Kigali, Rwanda.
“The summit which will be taking place on the 5 and 6 of September 2016 will be a prime example of Africa’s growing economic prowess, and the interest it will gain from global leaders in the years to come,” said Gatare.
The summit will bring together global and regional investors representing $250bn in managed funds, with African heads of state, government ministers and private sector businesses leaders.
In partnership with COMESA and the Government of Rwanda, TGAIS–COMESA Rwanda is held under the patronage of His Excellency Paul Kagame, President of the Republic of Rwanda.
Sindiso Ngwenya, Secretary General of the Common Market for Eastern and Southern Africa (COMESA) said: “The COMESA region is rich in both natural and human resources, making it one of the key choices for financiers, so it’s understandable that Chinese investors are increasingly turning to the region.”