The African Development Bank (AfDB) Group on Wednesday in Lisbon signed two major cooperation agreements with China and Brazil for the funding of projects and programs in AfDB's regional member countries.
AfDB policy and operations Vice President, Aloysius Uche Ordu, and the Executive Vice President, Agricultural Bank of China, Zhu Hongbo, signed a memorandum of understanding on a collaborative ventures in co-financing, technical cooperation for capacity building and knowledge partnership.
Mr. Hongbo said the deal, sealed on the eve of the AfDB 2011 Annual Meetings in the Portuguese capital, would ultimately focus on:
- Trade Finance;
- Infrastructure;
- Agriculture and agro-business;
- Clean energy projects such as solar energy and wind energy;
- Energy conservation, emission reduction and emission trading, promotion of biogas technology in rural areas, low-carbon planting, and bioelectrogenesis;
- Non-traditional lending business such as investment banking, consultancy and advisory business;
- Knowledge sharing and technical assistance; and
- Other areas which may be agreed upon by the Parties from time to time.
Vice President Ordu expressed the Bank's appreciation of the alliance between the two banks. He commended the key role China is playing in the continent's development. "We are privileged to be your partner and we will continue to work with you," he added.
Under another agreement signed by Mr. Ordu and Brazil's Secretary of International Affairs in the ministry of planning, budget and management, Carlos Augusto Vidotto, Brazil will, through its South-South Cooperation Trust Fund provide U.S.$ 6 million to the AfDB for the promotion of cooperation between the RMCs.
The fund is designed to facilitate the sharing of development knowledge, expertise and appropriate technologies between the Regional Member Countries and other developing regions outside Africa.
Focus areas include:
- Agriculture and Agri-business,
- Private Sector Development,
- Clean Energy/Environment,
- Governance,
- Health,
- Social Development,
- Other areas to be determined by the parties.
The Fund will become a multi-donor trust when agreement is reached with other contributing partners.
