Harare - The President of the African Development Bank, Akinwumi Adesina, has urged Chinese business leaders to attend the Africa Investment Forum scheduled to take place in Johannesburg, South Africa, from 7-9 November 2018, according to a press statement on the Bank’s website.
Adesina made the call while addressing delegates at the 6th Conference of Chinese and African Entrepreneurs, which took place on the sidelines of the 2018 Beijing Summit, attended by leaders from 53 African countries and China.
“I am sure you all know Africa is the place to be. African economies are growing well and the GDP growth rate is projected to average 4.1 percent this year,” he said.
According to the statement Akinwumi had lively exchanges with high-level officials and business leaders from China, led by Vice-Premier Liu He, Governor Yi Gang of the People’s Bank of China, and the President of China Development Bank, Zheng Zhijie.
Responding to questions by China Economic News (CEN) on how China could be unique to Africa, Adesina said, “China doesn’t just promise, China delivers.”
In a separate interview, with China Daily, Adesina said there is a perfect alignment between the Belt and Road Initiative and the ‘High 5s of the African Development Bank Group.
“The Bank is already discussing with China Development Bank about formulating large-scale projects, which can fit in the both of the frameworks.”
The Bank President also described the relationship between China and Africa as a mutually reinforced partnership, noting that there are 10,000 Chinese companies and 1.3 million Chinese people throughout Africa.
He also cited cited significant trade imbalance as a challenge to be tackled.
“While nearly 90 percent of China’s exports to African countries are high-value-added products such as machinery and equipment, 75 percent of Africa’s exports are raw materials.”
He also called on Chinese companies to invest, and not just contract or provide loans to Africa’s public sector.
Highlighting energy and the agriculture and food sectors as opening vast opportunities and potential to China and the world, Adesina expressed hopes for a strong representation by Chinese businesses at the upcoming African Investment Forum in South Africa.
“This is not a talk-show, it is all about transactions. US$92 billion portfolios are already set on this platform,” Adesina said.
The Africa Investment Forum will convene project sponsors, borrowers, lenders and investors, necessary for accelerating investments in Africa. The three-day event will unite global pension funds, sovereign wealth funds, and other financial sector investors.
The Forum will also bring together a network of financial institutions with instruments to de-risk selected investment opportunities.
During his keynote speech at the opening ceremony of the 2018 China-Africa Cooperation Forum (FOCAC), President Xi Jinping referred to the Africa Investment Forum as a concrete step for “building a shared future.”
Jinping pledged to extend a US$60 billion financing package and US$10 billion investment in Africa over the next three years.
China-Africa trade amounted to US$174 billion in 2017, a huge increase from just over US$10 billion in 2000.
Chinese foreign direct investments in Africa have risen from US$10 billion in 2010 to over US$60 billion in 2017.
President Mnangagwa was in attendance at the just ended summit in Beijing where he is still meeting with businesses and organisations that expressed willingness to invest in Zimbabwe.
Reports from China indicates that several companies have expressed interest of doing business in Zimbabwe including Huawei Technologies Co Ltd, a global leader in consumer electronics; and TBEA, which specialises in electricity generation, transmission and distribution.
Other Chinese businesses that also expressed interest in the country are Yantai JinAO Protection Technology Co, a gold mining company involved in refractory gold ore extraction and processing; Touchroad International Holdings Group, which is involved in special economic zones development, resources exploitation, finance and international trade and China Gezhouba Group Company Limited and CGGC, which is one of the largest comprehensive solutions providers for the power industry in China and globally among others.
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