Financing Africa’s Economies: Growing Involvement of Eximbank China

So far, the giant financier has disbursed 437 billion Yuan for over 1,000 projects in 50 African countries in what authorities say is its, “One country, one solution” approach.

As China and Africa continually work to deepen their longstanding relationship and strive to render it more mutually-beneficial for the two peoples, financing the economies is almost constantly at the centre of all efforts. And given Africa’s inability to conveniently mobilise financing for huge projects susceptible to propelling their economies to boom, China has been working tirelessly to bridge the gap with wide-ranging business-friendly loans. 

China’s import/export bank, Eximbank China, has stood out as one of the top, if not the greatest, financiers of Africa’s economies at moment dishing out concessional loans to desiring and deserving countries. Their specificities are the interest rates and period of repayment that are different from those proposed by commercial banks. 

Authorities told Cameroon Tribune at the bank’s headquarters in Beijing on October 14, 2016 that, “up till now, China Eximbank has supported over 1,000 projects in more than 50 African countries. A total of RMB 437 billion Yuan has been disbursed to finance projects in Africa including hospitals, schools, roads, bridges, railways, ports, telecoms facilities…”

Briefing a visiting delegation of African media practitioners, the bank’s Vice President, Yuan Xingvong said given the diversity of African countries likewise their peoples and needs, the bank couldn’t go for a one-fit-all strategy. “We are into a one country, one solution approach,” he said. Reason why funded projects are those that have the propensity to meet the urgent needs of the host countries in their socio-economic development drive with the goal of improving the population’s living and working conditions as well as raising their capacities for self-development. “The bank has kept expanding financing channels for China-Africa cooperation and has become the major driving force for Africa...