afrol News, 16 May - Delegates on Wednesday begin the 42nd annual meetings of the board of governors of the African Development Bank (AfDB) in Shanghai, China, with calls for wider and mutually beneficial cooperation between Africa and China.

China is also hosting the 33rd annual meetings of the board of governors of the African Development Fund (ADF). The opening ceremony was graced by Presidents of Cape Verde, Madagascar and Rwanda – Pedro Pires, Marc Ravalomanana and Paul Kagame.

The Chinese Prime Minister, Wen Jiabao, told delegates that the meetings would boost the long-standing relations between Africa and Asia as well as increase the Bank Group’s global influence and its capacity to leverage partnerships for the development of Africa.

Chinese Premier recognised Africa’s daily challenges of globalisation. He said China is committed to helping African countries tackle some of the challenges.

Mr Jiabao said since it has established diplomatic relations with African countries in the 1950s China has so far funded 900 infrastructure and public works projects in the continent. China has also cancelled billions of debts owed to her by African countries. He said in the near future, China would provide debt relief of equal amount.

Chinese Premier said his country has applied zero-tariff regime to exports of some least developed African countries to China and provided greater market access to African products. China would further expand market access in line with agreements signed by both sides during the Beijing Summit on China-Africa Cooperation in November 2006.

Assuring that China would fully deliver on its commitment to work with African countries, Mr Jiabao also called for the expansion of cooperation between the two sides for their mutual benefit.

He said China has attached high importance to its cooperation with AfDB and other sub-regional African development organisations.

Donald Kaberuka, the President of the Bank Group, disclosed that all three windows of the institution reported a combined income of US$ 372.5 million, with the AfDB window accounting for a gross income of US 291 million in fiscal 2006.

“I am pleased to report that the financial position of the bank remains strong and the medium-term outlook robust. The key financial ratios of the Bank have strengthened further and compare favourably with those of other multilateral development banks. The Bank continues to enjoy the highest possible ratings from all the rating agencies that reaffirmed triple AAA and AA+ rating for the Bank’s senior and subordinated debt respectively, with stable outlook,” he said.

He attributed the bank’s strong financial position is a reflection of prudent financial and operational management that have enabled to consolidate its reserves and contribute to other development initiatives.

President Kaberuka hailed the last six years in Africa which saw snowballing of strong economic growth, including countries without natural resources. On average, economies in Africa are growing at 5.5 percent. This was driven by peace and stability, better terms of trade, economic governance, business climate, lower debt rations and in some cases higher official development assistance inflows.

Bank Group President said the outlook for Africa remained positive, with 31 countries growing at a rate above their population increase. While half of the countries record over 5 percent, 9 were growing above 7 percent. He said there is hope for the continent’s economic future because even post-conflict countries like Liberia, Central African Republic, DRC and Burundi, have been slowly getting back on their feet.

“Perhaps even more significantly, the five countries with the largest populations in which nearly half of Africans live, are registering growth above 5% thereby providing a strong chance of faster reduction in the number of people living in absolute poverty”, he said, forecasting growth of up to 6.5% in 2007.

Despite the progress registered by some countries, millions of Africans still live in countries that are either stagnating, contracting or barely keeping up with population growth; for a number of reasons including fragility, conflict, or policy setbacks. In that, countries that are supposed to be doing well are still vulnerable to internal and external factors to the extent that even the 5.5 percent real GDP growth does not bring the continent close to winning the campaign to curb poverty.

Mr Kaberuka described Asia as the world’s fastest growing market that has both inspirations and challenges for Africa. “This annual meeting is an opportunity to exchange experiences and enhance that partnership. The future for Africa’s economies, like Asia before it, will be private sector-driven".

Zhou Zianochuan, the Governor of the Central Bank of China, described the gathering as “a fresh starting point for all parties to intensify cooperation and promote development in both Asia and Africa."

By staff writer

© afrol News

Related pages and feature

Current afrol News Top Stories