China-Africa Ties: Partners eye further upgrades to infrastructure
Updated 17:03, 09-Jul-2019
Infrastructure forms an important part of China-Africa ties. At a dialogue on infrastructure and financing cooperation at the First China-Africa Economic and Trade Expo, agreements for 13 projects worth almost 2.6 billion U.S. dollars were signed. But it's not all about quantity. The Expo seeks to further strengthen the QUALITY of infrastructure cooperation too. CGTN's Wei Lynn Tang has more.
WEI LYNN TANG CHANGSHA, HUNAN PROVINCE "China is right now the single largest financier of infrastructure and capital projects in Africa, outpacing that of the continent's private domestic capital. At the first China-Africa Economic and Trade Expo, China has affirmed its commitment to supporting Africa's infrastructure needs, which stands up to an estimated 170 billion U.S. dollars a year. The way forward from this Expo is: to further pursue sustainable projects, while implementing innovative financing models, at the same time."
ZHANG XUGUANG, VICE PRESIDENT CHINA DEVELOPMENT BANK "We are exploring a few innovative ways to fund projects. For example, we encourage both Renminbi and African countries' local currencies in the fields of investment and trade, for both currencies to be profitable partners. And when it comes to joint loans and SMEs indirect lending, we plan to also help drive the power of local financial institutions."
China Development Bank launched the China-Africa Development Fund in 2007 to assist Chinese companies to invest in Africa.
Almost 12 years on, CADFund has committed more than 4.6 billion dollars investment in over 90 projects in 36 African countries.
LUNGISA FUZILE, CHIEF EXECUTIVE STANDARD BANK OF SOUTH AFRICA "The demand side from the African continent is limitless, for investment and infrastructure. As to whether specific projects are bankable exists in a well documented in each country remains to be seen. In fact one would say in many instances, that is one of the challenges."
And participants say it is for this reason that this Expo is necessary to form dialogues and partnerships to bring down project-based risks.
From a commercial standpoint, heavy equipment manufacturers continue to be upbeat about the African infrastructure market.
Changsha-based Sany Group says public-private partnership projects will be the trend going forward. Sany will be signing deals in this regard during the Expo.
TAREK AMRI, VICE PRESIDENT SANY GROUP CO., LTD. "In Africa, Sany has achieved more than 50 percent sales growth during the past years and we are expecting for the upcoming years at least the same level 50 percent and maybe we are targeting more. For this we are implementing very innovative financial solutions, we are creating local companies, localizing in some areas in Africa, and we are also implementing JV companies with several countries in Africa."
WEI LYNN TANG CHANGSHA, HUNAN PROVINCE "From discussions on meeting Africa's infrastructure gap, to sustainably meeting its funding needs, participants are hopeful to also have more of the private sector and SMEs on board this growing China-Africa trade and investment relationship. WLT, CGTN, Changsha in Hunan province."