Nigeria to benefit from China Eximbank’s $1 bn Africa industrialization program

Nigeria and 53 other African countries are to benefit in China Export-Import Bank (China Eximbank)’s $1 billion investment and industrialization program to help accelerate Africa’s industrialization and enhance trade between the continent and China.

The programme, to be implemented in the context of a plan announced by President Xi Jinping of China, to dedicate $60 billion towards Africa’s industrialization in the next 10 years, would be operated as a co-branded product by China Eximbank and Africa Export-Import Bank, Afreximbank.

A statement issued by Obi Emekekwue, of Afreximbank’s external communications, said discussion for the programme was held between Liu Liange, president of China Eximbank and Benedict Oramah, president of Afreximbank during their recent meeting in Beijing, China.

Afreximbank president, Benedict Oramah said the deal was aimed at enhancing the capacity of the two institutions (China Eximbank and Afreximbank) to jointly finance projects that would boost Africa’s manufacturing capacity.

It would focus on such activities as development and operation of industrial parks and special economic zones, light manufacturing, and processing of primary commodities.

Afreximbank and China Eximbank are to develop the program in such a way that African countries can draw down from the $1 billion-dollar investment and industrialization programme to help accelerate the continent’s industrialization and enhance trade between Africa and China.

It would also aid the establishment of heavy industries which support manufacturing; the provision of logistics to facilitate intra-regional trade; and the development of trade facilitating infrastructure.

In addition, it would encourage investment by Chinese companies in manufacturing in Africa, which could help the African countries to fully utilize market access opportunities available under various trade agreements.

According to Oramah, Afreximbank will identify the projects under the programme, while China Eximbank would find the Chinese firms to help deliver them.

Details of the industrialization program are still in further discussion between the two institutions, and updates are to be embodied in a memorandum of understanding (MoU) which is anticipated to be signed in the foreseeable future.

Oramah, a Nigerian national, who assumed headship of Afreximbank in September 2015, commended China’s support for Africa’s industrialization, saying that the tremendous growth achieved by Africa in recent years owed a lot to the expanded trade and economic cooperation with China.

Also speaking, China Eximbank president, Liu Liange pledged his organisation’s commitment to working with Afreximbank to boost Africa’s economic development, and increase trade with China.

He said the joint programmes and projects between the two institutions would enhance their ability to achieve their mandates.

Liange welcomed the long standing good relations existing between the two institutions; saying that China Eximbank was ready, positive and confident about working with Afreximbank for Africa’s economic development.

Liange and Oramah had met as part of consultations aimed at strengthening relations between Afreximbank and China Eximbank.

 

BEN EGUZOZIE, with wire copy