3 more African nations are set to join AIIB

Twenty-three new members will bring the total to 80, the Asian Infrastructure Investment Bank says

The Asian Infrastructure Investment Bank will soon accept into its ranks 23 new member countries, including three African nations, said Danny Alexander, the bank's vice-president.

Alexander said the new members that are gradually being approved to join include Ethiopia, Madagascar and Sudan.

The three nations will join fellow African nations South Africa, a prospective founding member, and Egypt. The 23 new members will bring the total to 80.

Just 18 months after its launch, the bank is already off a "very strong start", approving 17 projects in nine member countries worth $2.8 billion and set to increase its lending programs, Alexander said during a news conference on Aug 29 in Beijing.

"We will shortly be considering a potential investment in a solar power project in Egypt. That will be the first project in Africa, and depending on the project and the ideas that we developed, there will well be more in the future," he said of the bank's prospects for funding projects in Africa.

Alexander said the AIIB enjoys a "very good" relationship with the African Development Bank and sees it as a sister institution and part of a family of multinational development banks.

He said the two banks meet from "time to time, have discussions and share experiences" on a number of issues, although no projects have been co-financed by them.

In response to concerns about African countries with smaller economies that may join the bank in the near future, he said, "We have a number of smaller Asian countries which are members of the bank, including some for which we have already agreed to finance projects. For example, Tajikistan, a relatively small central Asian country which also has significant economic and financial challenges.

"We have been able to work out agreements to finance two projects in that country (Tajikistan) and have other projects in the pipeline in other small countries in Asia - and they are very important members of our bank, and we want to make sure that we listen to all of our shareholders," he said.

"We work closer with and listen carefully to the governments of the countries, and what we do is suitable and appropriate. We are developing an operating module of our bank to move very quickly and not to be too costly or bureaucratic but maintain high standards," he added.

He dismissed suggestions that the AIIB is micromanaged by the Chinese government, saying that "all members have broad interest and support the objective of the bank, and cooperation is very important to all members".

Countries from around the world are willing to engage in designing this new institution and are willing to become members and work closely with Asian countries to make sure the bank is a success, he said.

"The AIIB is an international financial institution, and we respond to all of our members and we follow the advising guidance of all our member countries," said Alexander, former chief secretary to the Treasury of Britain.

The AIIB supports sustainable economic development within a scope of lean, clean and green - which encompasses efficiency, zero tolerance for corruption, a high standard for integrity and making projects environmentally friendly, he added.

Projects must be economically viable, environmentally sustainable and socially acceptable before being approved and funded, he said.

Alexander said economists have hailed the AIIB for its "highest possible standard of international financial governance".

He added that the AIIB's "close cooperation with the World Bank in easily co-financing projects" is the proof of its viability.

For China Daily

(China Daily European Weekly 09/08/2017 page3)