Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Agency to Double Africa Spending to Counter China’s Reach

EconomyApr 04, 2019 22:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. Workers build a hydro pumping station which will supply water from the Limpopo river to nearby rice farms owned by Wanbao Grains & Oils Co., a Chinese company, in the Limpopo Valley near Xai Xai village, Mozambique, on Friday, March 24, 2017. The granaries and surveillance cameras in this corner.

(Bloomberg) -- The U.S. government’s development finance agency, the Overseas Private Investment Corp., aims to double investment in Africa to $12.4 billion to counter growing Chinese economic and political influence on the continent.

In October, the U.S. Congress passed a law that effectively raised OPIC’s lending cap to $60 billion from $29 billion, which increased project funding for developing nations including those in Africa to counter China, whose business practices the U.S. National Security Adviser John Bolton says are “predatory.”

OPIC now has “flexibility” since its lending cap was increased, its managing director for Africa, Worku Gachou, said in an interview in Kenya’s capital, Nairobi. The project funding will be given when the need arises, he said.

“Our lending and pipeline of projects in Africa will grow,” Gachou said. “Africa is OPIC’s largest regional exposure at $6.2 billion, and the goal and hope is for that to also increase in parallel with our new lending cap.”

While the U.S. is the largest donor to Africa, most of its money goes toward health, agriculture, and clean-water projects. By contrast, President Xi Jinping’s “Belt and Road Initiative” has focused on infrastructure with Chinese-backed investments ranging from Ivory Coast power plants to a Rwandan airport and a railway in Kenya.

Xi has defended his global infrastructure lending plan, saying it’s “not a trap as some people have labeled it.”

READ: America’s Moment of Truth in Africa - It’s Losing Out to China

The Washington-based agency “is talking to a number of companies in the ICT space” in Kenya and the region as part of its two-year investments plan in transport, information and communications technology, and the logistics sectors, Gachou said. It’s already injected $100 million into Africell Holdings Ltd., a mobile telecommunications operator, as part of its $1 billion investment for the region.

“We are really trying to grow and focus on this market,” Gachou said of ICT.

U.S. Agency to Double Africa Spending to Counter China’s Reach
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email