Ghana is proposing some amendments to the process of loan repayments with the growing concern of debt sustainability in Africa especially in relation to its financial dealings with China.
Speaking during a dialogue with executives of major Chinese financial institutions and Heads of African Delegations at the Coordinators’ Meeting on the implementation of the follow – up actions of the Beijing Summit of the Forum for China – Africa Cooperation (FOCAC), Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey urged China to increase the duration for loan repayment for the country.
“To ensure sustainability of our debts, Ghana wishes to propose that China may consider increasing the tenure of loan repayment for key infrastructure from about 15-20 years to 20-30 years.”
“The move is expected to give beneficiary countries some fiscal space as well as allow the projects to fully develop into self-financing and self-sustaining ones indicating that China may consider giving African countries at least five years moratorium on loan repayment.”
Chief economist at the China Development Bank, Liu Yong assured that “China would provide strong financial support for high quality economic development in Africa.”
Meanwhile all nine representatives pledged their continuous commitment of the financial institutions to provide sustainable funding to African counties, whilst developing more products that are based on experiences of the Chinese combined with specific situations in the various member countries.
In a related development, Chinese Vice President Wang Qishan has called on China AND Africa to build consensus and strengthen cooperation for the successful implementation of the outcomes of Beijing Summit of the Forum for China – Africa Cooperation (FOCAC).
Speaking at a group meeting with heads of African delegations ahead of the summit, Mr. Qishan urged both sides to push the China- Africa strategic partnership of cooperation to a higher level thereby building a closer China-Africa Community with a shared future.
The meeting comes nearly a year after the Beijing Summit which rolled out major initiatives on infrastructure connectivity, trade facilitation, industrial promotion, health care, capacity building, people to people exchanges as well as peace and security.
Meanwhile China Development Bank in 2018 alone provided 60 billion US Dollars in financing nearly 500 projects in 43 African countries across various sectors which included infrastructure and agriculture.
Trade between China and Africa reached a little over 204 billion US Dollars last year, making China Africa’s largest trading partner for ten consecutive years.
Story By: Henry George Martinson/radiogoldlive.com
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