A $2 Billion Africa Growing Together Fund Launched By China
Earlier this week, the African Development Bank (AfDB) signed a $2 billion fund deal with the People’s Bank of China (PBOC) that has been dubbed the Africa Growing Together Fund (AGTF). The fund will be used to finance various development projects across the African continent for the next ten years to come.
AfDB will be in charge of the disbursement of the AGTF to various projects across the continent. The fund is expected to hit grounds before the end of this year. “the AGTF enables an additional US$200 million in more or larger-sized projects annually throughout Africa, on identical terms and conditions as for loans made by the AfDB itself to the same projects. This builds on the success of similar instruments such as the Nigeria Trust Fund, which has been in operation for close to 40 years.” Said, Charles Boamah, the Vice President and CFO for AfDB.
His counterpart, the Governor of PBOC Zhou Xiaochuan said, “the AfDB’s rich experience, convening power and strong results-oriented culture made the Bank China’s ideal partner for channelling resources in support of long-term growth and development on the continent.”
The institution was set up back in 1964 as a vehicle to spark sustainable socio-economic growth in its member states through mobilization and allocation of resources for investments in RMCs. It also gives technical assistance and policy advice to the initiated development projects. The funds from PBOC will go a long way in helping AfDB allocate more resources to its member states thus fast track implementation of policies and achievement of MDG’s.
This move by China’s just like all of its moves to establish itself as a trade partner to the African continent has raised eyebrows. Analysts see China’s “supposed aid” to Africa is actually a cunning means China is using to turn African nations against their traditional trade partners who have always been from the West. While some see this as a promising opportunity for Africa; to have a new and possibly better alternative trade partner and a source of financing for Africa’s development.