China Eximbank to boost business links with Africa
SHANGHAI: The Export-Import Bank of China says it plans to play a bigger role in nurturing China-Africa business links.
The bank, also known as China Eximbank, is the country's leading policy bank dedicated to supporting international trade cooperation.
Li Ruogu, chairman and president of China Eximbank, said a major concern involves ways to help boost African countries' economic growth. He was among those at the African Development Bank's annual meetings in Shanghai.
"It is important to find ways to strengthen Sino-African economic and trade cooperation under the trend of globalization and to convert Africa's advantage in rich resources into a competitive edge for its development," Li said in an interview with China Daily here.
Bank officials held a series of meetings with African delegates and AfDB officials and Li said he expects further cooperation with African partners.
In recent years, the bank has utilized various financing models to promote ties. By the end of 2006, the bank's outstanding loan for Africa stood at 40 billion yuan. The bank's financial services for Africa take two forms: government loans and financing for Chinese enterprises that invest or have projects there.
"We aim to improve the continent's capability for sustainable growth and more rapid development and our priorities are on infrastructure construction projects and industries that will benefit local people," Li said.
In addition to financial support, the bank has also had cooperation with local governments and institutions. It partnered with AfDB and West African Development Bank in information sharing, human resources exchange, business innovation and syndicated loans.
China Eximbank also offers advisory services and risk management services to those who try to develop in African countries.
"At present, there are huge opportunities for Chinese enterprises investing in Africa," Li said. He said the continent is in great need of overseas investment.
China has accumulated a track record of development and has established a group of powerful enterprises capable of investing in Africa.
However, they need to pay attention to challenges such as how to avoid political and economic risks, how to earn a profit from investments and ensure the sustainability of their projects, he said.
In addition, a major question is how to help African countries and residents and improve their development capability.
"Sound links between China and Africa, Chinese companies' capital strength, their technology and products that are in demand in Africa, and successful cooperation examples give China Eximbank unique advantages in developing business in Africa," Li said.
(China Daily 05/17/2007 page25)
