Aside from intergovernmental loans, there are other debt-creating financial flows from China to Africa, mainly trade credits, some of which are medium- and long-term.13 Trade credit may be provided by suppliers or financial institutions. Of these the Export-Import Bank of China (China Exim Bank) is the most active. Its total export credit and international guarantee business increased to US$19.8 billion in 2006, from US$15.2 billion in 2005.
Though China Exim Bank does not report activities by region, there is clear evidence of significant and expanding operations in Africa.
By the end of 2005, China Exim Bank had approved more than 50 billion yuan (US$6.5 billion) for projects in Africa, which accounted for close to 10 percent of the Bank’s total approvals at that time. 14 Estimates by World Bank staff compiling data from public sources are much higher—China Exim Bank loans to SSA for infrastructure alone amounted to US$12.5 billion by mid-2006.15 As of September 2006 there were 259 China Exim Bank projects in 36 African countries, and 79 percent of its commitments to Africa were for infrastructure (Ellis, 2007). According to news reports summarized by Moss and Rose (2006), several of these projects are very large.16 This financing is clearly much larger than ODA flows.
What is not clear is the extent to which China Exim Bank’s projects or its commitments give rise to external debt of African countries, because the financial arrangements and obligors vary from project to project. China Exim Bank’s annual reports indicate that export buyers’
credit accounted for only 10 percent of its new commitments in 2005–06.
IMF Working Paper African Department What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang October 2007
To learn more about this author, visit International Monetary Fund's Website.
Like this article? Share it with your friends
 |
Related Businesses - Evan Elite Authors |
|
Dianne Crampton
Dianne Crampton is an Executive Leadership Coach and Team Building Consultant and creator of the TIGERS team development model. For the past twenty years she has helped leaders and teams achieve goals with high levels of collaboration and teamwork.
Crampton is a published author. Her contribution to Working Together: Diversity As Opportunity was endorsed by Stephen Covey. She has written for trade magazines. Merrill Lynch nominated her business for Inc. Magazine’s regional small business and entrepreneurial awards. Her work with Native Americans was recognized at a United Nations sponsored conference in 1994.
The TIGERS model passed two rigorous validation studies in 1992 and 1994. The TIGERS Survey is able to measure and track team development over time.
Dianne is also the creator and distributor of the TIGERS Team Wheel game. This game helps groups identify behaviors that build collaborative groups and behaviors that cause conflict, morale problems, production failures, and misunderstandings.
For more information, or to subscribe to TigerTracks, a free monthly leadership and team newsletter go to http://www.corevalues.com - Visit Dianne Crampton's Website |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
International Monetary Fund
(Visit International's Website)
The IMF is an international organization
of 185 member countries. It was
established to promote international
monetary cooperation, exchange stability,
and orderly exchange arrangements; to
foster economic growth and high levels of
employment; and to provide temporary
financial assistance to countries to help
ease balance of payments adjustment.
Since the IMF was established its purposes
have remained unchanged but its
operations—which involve surveillance,
financial assistance, and technical
assistance—have developed to meet the
changing needs of its member countries in
an evolving world economy.
|
|
|
International Monetary Fund's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get International Monetary Fund's Complete List of African-Accounts Articles For FREE!
|
|
|
|