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China,South Africa : CHINA opens approach to AFRICA with US $2 billion fund

May 26, 2014

China and the African Development Bank (AfDB) agreed to co-financing fund worth US $2 billion over 10 years, a deal signalling a shift in Beijing s policy of dealing direct with countries.

The deal is Beijing's latest economic push on the continent, set up the fund between the People's Bank of China and the AfDB to finance sovereign and non-sovereign guaranteed development projects totalling some US $200 million annually.

The shift is setting up a multilateral fund follows criticism by some of China's growing role in Africa, striking deals including cheap loans in exchange for mining rights or construction contracts.

This is the first time that Africa has taken a multilateral route. And they did it because they want to assist in the development of Africa. The fund is named the Africa Growing Together Fund (AGTF).

The next 2 decades are going to see a strong growth. And the people are going to raise their living standards substantially.

China's economic growth has been fuelled by African natural resources including oil.

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Source: TendersInfo (India)

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