A new financing agreement worth US$ 2 billion to be used to create the “Africa Growing Together FUND (AGTF) was signed between the People’s Bank of China and the African Development Bank.

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The AGTF is an investment vehicle for the entire African continent. Resources from this fund are scheduled to be provided during a 10 year period and will be utilized together with the AfDB’s resources to fund eligible development projects in the continent.

The new deal was signed by AfDB President Dr. Donald Kaberuka and Zhou Xiaochuan, Governor of the People’s Bank of China on Thursday during the annual AfdB meeting in Kigali.

The signing of the agreement according to Kaberuka speaks well of the good relations that exist between China and AfDB. Africa regards China as a friend that has financed infrastructure projects and invested in natural resources in the continent.

With the new agreement china and Africa will be taking a multilateral route for the first time, according to Kaberuka.

He added that China was in no way obligated to extend their assistance this far but did so out of their desire to help in the development of Africa.

Kaberuka also said that their bank’s impressive record of responsibly managing their shareholders money, their sound investments and healthy financial systems may have inspired China.

Governor Zhou Xiaochuan for his part lauded the accomplishments of the AfDB over the past 50 years and of the great efforts they have taken to promote growth and alleviate poverty in the continent.

Zhou added that China would like to take a step further and partner with Africa to work towards industrialization and the further development of infrastructure in the region.

Zhou also expressed his hope for the continent’s continued growth, increased prosperity to improve the living standards of the people in Africa over the next 10 years.

Zhou gave the assurance that China will remain Africa’s partner in this development.