II.C. Other Debt-Creating Financial Flows: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

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References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund

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

V. A. Markets for Exports: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES

II.D. Foreign Direct Investment: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

VII F. Attract Capital Flows and Encourage Foreign Participation: PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA

CONCLUSION: What Drives China’s Growing Role in Africa?

IV. A. Private Traders: THE ROLE OF THE PRIVATE SECTOR

What Drives China’s Growing Role in Africa?

II.a Merchandise Trade: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

Moving Forward: International Community

V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES

V. C. China’s Approach to Financing: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES

III. C. Commercial Policies: THE ROLE OF CHINA’S PUBLIC SECTOR

II.B. Official Development Assistance and Debt Relief: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

1.5 Globalization trends and implications: Economic Report on Africa 2007

III. A. China’s African Policy and New Commitments for 2007–09: THE ROLE OF CHINA’S PUBLIC SECTOR

1.8 References: Economic Report on Africa 2007

References: What Drives China’s Growing Role in Africa?

SME's - WIll China be the next colonial power in Africa

Wall Street, “Africa is Investing’s Final Frontier”

Cash Flow and Business Valuation

II.E. Contract Labor and Other Services: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

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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.
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More from International Monetary Fund
IIE Contract Labor and Other Services TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
Expenditure Composition and Growth
References Stock Market Development in SubSaharan Africa
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V A Markets for Exports AID VS COMMERCE FACTORS INFLUENCING THE GROWING TIES

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II.C. Other Debt-Creating Financial Flows: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA

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