CBD finance to assist Ghana's economic growth
Finance from China Development Bank (CDB) is to be used by Ghana to assist economic growth in the country.Finance from China Development Bank (CDB) is to be used by Ghana to assist economic growth in the country.
The African nation will utilise a $3 billion (€2.2 billion) credit line from the CDB for expanding its hydrocarbons infrastructure and developing its industrial capabilities, Africa-Asia Confidential reports.
A total of six projects will be undertaken using the first tranche of money and Finance Minister Kwabena Duffuor said that while the arrangement is not as beneficial as receiving concessional financing from the International Monetary Fund or World Bank, it is less expensive than Ghana issuing a eurobond.
Another half-dozen projects will be financed by the second tranche, including a $100 million incubation facility for small and medium-sized enterprises in the nation.
China has been steadily increasing its investment in Africa and according to figures from the Economist, almost 14 percent of its total outward investment between 2005 and 2010 was focused on the continent.
The China-Africa Development Fund, established by the China Development Bank, will eventually be worth $5 billion and Trade Finance recently reported talks are underway to provide Bank of Zimbabwe with a $30 million line of credit to finance broadband expansion.