Association for Free Research and International Cooperation

The United States creates a new investment fund for Africa

07.10.2018
in response to the last summit in china africa and the $ 60 million package proposed by pekin, Washington has just set up an agency dedicated to the development of the continent. A thinly veiled response to the Chinese offensive in Africa

Duel distance between the United States and China on the African continent. Washington has just set up an agency dedicated to the development of the continent. A thinly veiled response to the Chinese offensive in Africa.

With the Build Act, the United States is embarking on development in Africa. On October 3rd, the US Senate carried this project with a majority vote of 93 to 6. The Build Act, which regulates US investment for development, has initiated a new fund, the US International Development Finance Corporation ( USIDFC). A $ 60 billion body.

In fact, the USIDFC is a conglomerate of already-established US development aid agencies, such as the $ 23 billion Overseas Private Investment Corporation (OPIC). But faced with the frantic pace of Europe and especially China in Africa, Washington wanted to strengthen its strike force.

The Middle Kingdom has, in recent years, increased its investments on the continent. In early September, after the China-Africa Cooperation Forum in Beijing, the Chinese president announced a $ 60 billion package, including $ 15 billion in grants and interest-free loans for development. of Africa. An announcement hailed by the majority of Africans, but also raised fears as Beijing is accused of pushing African states into a debt crisis.

With the USIDFC, the United States is promoting a “financially sound alternative” that would offer, for example, equity investments. The law, however, must still be promulgated by US President Donald Trump who could do so in the coming days.

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