The Development Finance and Sino-African Cooperation Forum
opened on Sunday, May 13, 2007 at the Shanghai International
Convention Center. Co-hosted by the African Development Bank Group
and People's Bank of China, the forum aims to push forward
communication and understanding between development financing
institutions in China and African countries.
According to Xiang Junbo, deputy governor of the People's
Bank of China and director of its Shanghai headquarters, the unique
role of finance in supporting less-developed areas in China and
Africa is crucial for economic globalization.
For example, the China Development Bank and People's Bank of
China provide poverty reduction interest subsidized loans and
agriculture supportive lending to these areas. Pilot micro credit
companies also have been established to reverse the drain of
financial institutions, and local governments have made efforts to
build a solid judicial environment to protect creditors'
rights.
As a development financial institution of the Chinese
government, the China Development Bank (CDB) has been actively
conducting international cooperation and providing financing
services to African governmental departments, financial
institutions and enterprises, said Gao Jian, vice governor of
CDB.
During the Forum of China-Africa Cooperation (FOCAC) held in last November, CDB signed five
agreements and memoranda with African partners. By the end of March
this year, the standing of CDB in Africa amounted to US$1 billion.
It has also been following the development of 30 projects in
African countries, involving US$3 billion.
As the main initiator of the China-Africa Development Fund, the
CDB has drafted the Plan on the Establishment of China-Africa
Development Fund, which is one of China's eight steps for aid to
Africa proposed by President Hu Jintao at the FOCAC. According to the plan,
the fund will start from US$1 billion and eventually amount to US$5
billion by three phases. The fund's business scope includes equity
and quasi-equity investments, fund investments, investment
management, and consulting services. It supports African countries'
agriculture, manufacture, energy sector, transportation,
telecommunication, urban infrastructure, resource exploration and
the businesses of Chinese enterprises in Africa.
The Sino-African financial cooperation has also attracted
attention from multi-national corporations. A senior manager from
Alcatel Shanghai Bell said the financial assistance from the
Chinese government and financial institutions to African countries
have contributed a lot to his company's exportation to Africa. He
hopes to enhance communication with African countries on financing
channels and cooperation through the forum and the coming annual
meeting of the African Development Bank.
According to Vice Minister of Commerce Wei Jianguo, the
Sino-African trade volume totaled US$5.5 billion with China
standing as Africa's third largest trading partner in 2006. China
had invested a total of US$11.7 billion in Africa with focus being
agricultural development, processing and manufacturing,
transportation, telecommunications, water conservancy, power, and
other infrastructure sectors.
(China.org.cn by staff reporter Li Shen May 14, 2007)
