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Singapore and Shanghai Deepen Ties with Record-Breaking Trade and Investment Agreements

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Singapore and Shanghai Deepen Ties with Record-Breaking Trade and Investment Agreements

 

Singapore and Shanghai have strengthened their bilateral ties with a series of agreements across various sectors, as trade between the two nations reached new heights. In 2022, bilateral trade grew by 8%, totaling $20 billion, driven by increasing demand. Singapore-linked projects in Shanghai received investments worth nearly $24 billion, focusing on real estate, financial services, manufacturing, lifestyle, and consumer goods.

The fourth Singapore-Shanghai Comprehensive Cooperation Council (SSCCC) convened, marking the first physical meeting since the pandemic began. The event witnessed the signing of 15 memorandums of understanding (MOUs), covering sectors such as financial services, technology and innovation, and the digital economy.

The strengthened collaboration between Singapore and Shanghai, exemplified by the record-breaking agreements, sets the stage for a prosperous future.

Malaysia-China MoU Witnessing Ceremony

One notable MOU was between the Infocomm Media Development Authority and the Shanghai Municipal Commission of Economy and Informatization, aiming to enhance cooperation in digital connectivity, utilities, and innovation. The Maritime and Port Authority of Singapore extended collaboration with the Shanghai Maritime University to support talent exchange and academic cooperation in the maritime sector.

Another significant agreement was reached between Singapore’s Ministry of Law, the Law Society, and their Shanghai counterparts, fostering closer ties through a lawyer exchange program. OCBC Bank partnered with UnionPay International to provide mobile payment convenience in mainland China.

Shanghai’s market, four times larger than Singapore’s, presents an attractive opportunity for businesses. The city, China’s economic center, enjoys strong purchasing power, with disposable income rising by nearly 2% in 2022, driving demand for high-end goods and services.

Singaporean furniture maker, Commune, established a flagship store in Shanghai, strategically leveraging the city to recruit franchisees, showcase products, and tap into the Chinese market. Raffles Medical Group also successfully opened a hospital in Shanghai’s New Bund Area, serving expatriates and affluent Chinese patients.

The transition of leadership within the council saw Edwin Tong assuming the co-chair position from Lawrence Wong. The change reflects the commitment to foster collaboration between Singapore, Shanghai, and the broader Yangtze River Delta.

The strengthened collaboration between Singapore and Shanghai, exemplified by the record-breaking agreements, sets the stage for a prosperous future.

China Energy Unveils Asia’s Largest Coal-Fired Power Carbon Capture Project

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China Energy Unveils Asia’s Largest Coal-Fired Power Carbon Capture Project

 

China Energy Investment Corporation (China Energy) has recently unveiled the largest carbon capture project in Asia tailored specifically for the coal-fired power sector. The cutting-edge facility, situated in Jiangsu Province in eastern China, has commenced operations, marking a significant step towards curbing carbon dioxide (CO2) emissions.

Integrated with the Taizhou coal-fired power plant, the state-of-the-art carbon capture, utilization, and storage (CCUS) facility has the impressive capacity to capture 500,000 tonnes of CO2 annually. This milestone solidifies its position as the largest facility of its kind in Asia. China Energy has diligently emphasized the reliability and stringent safety standards observed during the CCUS system’s trial run. Furthermore, they proudly announced that the facility’s energy efficiency indicators and product quality have either met or surpassed the prescribed benchmarks.

China’s ambitious target of attaining carbon neutrality by 2060.

Sustainability and technology in China

In an effort to maximize the utility of the captured CO2, China Energy has secured contracts with eight prominent firms. These agreements guarantee the productive utilization of all the captured CO2, which will primarily be employed in dry-ice manufacturing and the production of shielding gases for welding. This strategic utilization highlights China Energy’s commitment to harnessing innovative solutions and promoting sustainability in energy generation.

China Energy, renowned as a major player in the coal-fired power generation sector, is actively spearheading various pilot carbon capture and storage projects across the country. These ventures align seamlessly with China’s ambitious target of attaining carbon neutrality by 2060. By deploying advanced CCUS technologies, China Energy showcases its dedication to mitigating greenhouse gas emissions and fostering a cleaner and greener energy landscape.

Brazil’s AmazonFACE: Decoding Amazon Rainforest’s Climate Respons

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Brazil’s AmazonFACE: Decoding Amazon Rainforest’s Climate Respons

 


Brazil is constructing a unique structure deep in the Amazon rainforest called AmazonFACE. This project aims to understand how the world’s largest tropical forest responds to climate change by studying its carbon dioxide absorption capabilities. Scientists are particularly interested in determining if the Amazon rainforest has a tipping point that could lead to irreversible decline, known as the Amazon forest dieback. This would transform the biodiverse forest into a drier savannah-like landscape.

AmazonFACE, short for Free Air CO2 Enrichment, utilizes a technology developed by Brookhaven National Laboratory to simulate future levels of atmospheric carbon dioxide concentrations. By increasing the input of carbon dioxide, researchers seek to understand the effects on plant behavior in the Amazon. While similar experiments have been conducted in temperate forests, it remains uncertain if the outcomes will be the same in the Amazon.

The construction of the initial two rings of AmazonFACE is currently underway, with completion expected by early August.

Manaus_AM, 25 de abril de 2017 Documentacao fotografica do projeto AmazonFACE na ZF2. Foto: JOAO MARCOS ROSA/NITRO

David Lapola, a leading scientist in the project, believes that the tipping point of the Amazon rainforest is more closely linked to climate change than deforestation rates. Therefore, studying the impact of higher carbon dioxide concentrations in the forest is crucial to anticipate future developments. This perspective challenges the widely quoted study by Carlos Nobre, an Earth system scientist, who suggested that deforestation reaching a critical threshold of 20% to 25% could disrupt the region’s rainfall system and transform the rainforest into a savannah.

Even if deforestation were halted today, the Amazon rainforest would still face the risk of a tipping point due to climate change. Lapola emphasizes the need to address climate change driven by atmospheric factors alongside efforts to stop deforestation. This responsibility extends beyond Brazil and requires collaboration from other Amazonian countries.

The construction of the initial two rings of AmazonFACE is currently underway, with completion expected by early August. Each ring consists of 16 aluminum towers reaching the height of a 12-story building. Carbon dioxide will be supplied by three companies to ensure an adequate amount. Situated approximately 44 miles north of Manaus, the project is led by the National Institute for Amazon Research, with financial support of $9 million from the British government. The project aims to be fully operational by mid-2024.

Kuwait’s Infrastructure Sector Thrives with $27 Billion Project Pipeline, Bolstering Vision 2035

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Kuwait’s Infrastructure Sector Thrives with $27 Billion Project Pipeline, Bolstering Vision 2035

 

Kuwait’s Vision 2035 places a strong emphasis on infrastructure development, leading to increased demand for advancements in the country’s national infrastructure. KPMG, a prominent audit and advisory services group, highlights Kuwait’s robust pipeline of infrastructure projects valued at an estimated $27.6 billion in the bidding stage. This significant pipeline sets an optimistic tone for the sector, according to KPMG’s report titled “The Kuwait Perspective,” which draws insights from the influential publication “Emerging Trends in Infrastructure.”

Imran Shaik, Director for Deal Advisory and Head of Infrastructure Services at KPMG in Kuwait, acknowledges a temporary slowdown in project awards and implementation but emphasizes the prevailing positive sentiment in the sector. The report underscores the potential long-term benefits of public-private partnerships (PPPs) and calls for increased attention to this approach.

Recognizing the importance of digital transformation, Kuwait’s government aims to enhance investment timelines, resource commitments, and attract more capital to the sector.

Modern Kuwait

The Kuwait edition of the global report features interviews with key personalities from Kuwait’s infrastructure sector, offering valuable insights to make the publication more insightful. Notable interviewees include representatives from National Bank of Kuwait, Umm Al Hayman for Wastewater Treatment Company, City Group Company, AVIC INTL, and China State Construction Engineering Corporation.

As Kuwait looks to PPPs to drive progress in the sector, Hassan F. Choudhry, Chief Financial Officer at Umm Al Hayman for Wastewater Treatment Company, expresses confidence in Kuwait’s market, stating that PPP projects can yield significant overall efficiencies and economic benefits for the country. With an increasing pipeline of PPP projects, Kuwait is on track to compete with other economies in the region.

Considering Kuwait’s commitment to achieving net-zero greenhouse gas emissions by 2060, the report highlights the leading role played by oil and gas companies and financial service-based organizations as early adopters of sustainable practices. Financial institutions in Kuwait have aligned themselves with the nation’s carbon neutrality goals, formulating sustainable financing policies that enhance funding opportunities for sustainable infrastructure projects.

Additionally, the report identifies the potential of mobility-as-a-service (MaaS) to offer cost-competitive and convenient solutions for public transportation, particularly for addressing the last mile of customer journeys. Dr. Dheeraj Bhardwaj, Group CEO for City Group Company, emphasizes the need for an end-to-end mobility solution accessible through a mobile app, highlighting MaaS as an ecosystem that simplifies transportation by integrating various modes of travel on a single platform.

Recognizing the importance of digital transformation, Kuwait’s government aims to enhance investment timelines, resource commitments, and attract more capital to the sector. This comprehensive transformation will drive advancements in Kuwait’s infrastructure landscape, aligning with the country’s long-term vision and development goals.

Indo-Pacific Nations Join Forces to Bolster Supply Chain Resilience, Fostering Regional Cooperation

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Indo-Pacific Nations Join Forces to Bolster Supply Chain Resilience, Fostering Regional Cooperation

 

In a landmark gathering of minds, the United States, Japan, and 12 other Indo-Pacific nations have forged an unprecedented agreement to fortify the resilience of critical supply chains. The momentous accord, achieved during the U.S.-led Indo-Pacific Economic Framework (IPEF) meeting in Detroit, marks a significant milestone since its inception in May of the previous year. With an overarching goal to reduce dependence on China, which has been rapidly expanding its economic clout in the region, this pact signifies a powerful stride towards safeguarding regional stability.

Deemed the “first of its kind on supply chains,” by Economy, Trade and Industry Minister Yasutoshi Nishimura, this multilateral agreement establishes a dedicated council to coordinate supply chain activities. Additionally, it sets up a pioneering “Crisis Response Network,” aimed at issuing early warnings to IPEF countries regarding potential disruptions to the supply chain. Moreover, this network will serve as a vital communication channel during emergencies, enabling prompt support and expediting recovery efforts.

THE INDO-PACIFIC: BETWEEN CHINA’S HISTORICAL LEGACIES AND GEOPOLITICAL AMBIGUITY

U.S. Commerce Secretary Gina Raimondo emphasized the significance of this accord during a press conference, citing the critical shortage of semiconductors that severely impacted American auto production amidst the COVID-19 pandemic. Raimondo underscored the immense value of the Crisis Response Network, expressing how it would have been instrumental in safeguarding jobs and ensuring the uninterrupted flow of supply chains during the crisis.

While the agreement does not explicitly mention specific goods, a Japanese official revealed that its scope encompasses critical minerals, semiconductors, new energy technologies, and other resources or equipment that could profoundly affect society if supply disruptions were to occur.

The comprehensive agreement seeks to enhance the resilience, efficiency, productivity, sustainability, transparency, diversification, and security of supply chains. This concerted effort addresses concerns arising from the COVID-19 pandemic and geopolitical tensions, such as Russia’s incursion into Ukraine. Furthermore, a notable component of the agreement involves the creation of a labor rights advisory board, consisting of government, worker, and employer representatives, dedicated to elevating labor standards within supply chains.

In the realm of clean energy, the IPEF partner countries have expressed their collective interest in launching a regional hydrogen initiative. The objective is to drive the widespread adoption of renewable and low-carbon hydrogen, as well as its derivatives, throughout the Indo-Pacific region. Anticipating a comprehensive agreement in November, the IPEF partners aim to align the announcement with the gathering of Asia-Pacific Economic Cooperation forum leaders in San Francisco.

It is important to note that the trade pillar of the IPEF does not encompass negotiations pertaining to tariff reductions or market-access aspects typical of traditional trade agreements. Rather, it focuses on establishing common rules pertaining to agriculture, labor, environmental standards, and trade facilitation. U.S. Trade Representative Katherine Tai reassured that progress has been made under the fair trade pillar and expressed confidence in achieving further results in the coming months. She reiterated that the IPEF’s core mission transcends mere maximization of efficiency and liberalization, aiming to foster sustainability, resilience, and inclusivity.

The IPEF represents an astounding 40% of global GDP, underscoring the pivotal role it plays in shaping the Indo-Pacific region. President Joe Biden’s launch of the initiative during his visit to Japan symbolizes the United States’ renewed commitment to the region after its withdrawal from the Trans-Pacific Partnership free trade deal in 2017. The current framework includes Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States, and Vietnam, with Canada actively seeking to join the alliance.

NEOM Green Hydrogen Project Secures $8.4 Billion in Financial Close

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NEOM Green Hydrogen Project Secures $8.4 Billion in Financial Close

 

NEOM Green Hydrogen Company (NGHC) has achieved a significant milestone by securing financial close for the world’s largest green hydrogen production facility. The company finalized financial deals with 23 local, regional, and international banks and investment firms, resulting in a total investment value of $8.4 billion. The facility, located in Oxagon, NEOM, Saudi Arabia, is currently under construction.

NGHC has also concluded an engineering, procurement, and construction (EPC) agreement with Air Products, which will serve as the nominated contractor and system integrator for the entire facility. The project’s non-recourse financing structure has been certified by S&P Global, affirming its adherence to green loan principles. This financing arrangement represents one of the largest project financing deals under the green loan framework.

NGHC, a joint venture between ACWA Power, Air Products, and NEOM

NEOM Green Hydrogen Company signs facility agreements

Air Products has already awarded significant contracts to various technology and construction partners. Furthermore, NEOM Green Hydrogen Company has secured a 30-year off-take agreement with Air Products for all the green ammonia produced at the facility. This agreement will unlock the economic potential of renewable energy across the entire value chain.

NGHC, a joint venture between ACWA Power, Air Products, and NEOM, aims to integrate up to 4 GW of solar and wind energy into the plant’s operations. By the end of 2026, the facility will have the capacity to produce up to 600 tonnes per day of carbon-free hydrogen in the form of green ammonia. Carbon-free hydrogen is a cost-effective solution for the transportation and industrial sectors on a global scale.

Nadhmi Al-Nasr, Chairman of NEOM Green Hydrogen Company and CEO of NEOM, expressed the significance of the financial backing received, highlighting the unmatched potential of NGHC’s green hydrogen project. He emphasized that the project’s completion would contribute to NEOM’s vision of accelerating renewable solutions and playing a leading role in the hydrogen revolution. Leveraging NEOM’s abundant natural resources, the project will pave the way for the widespread adoption of green hydrogen while driving Saudi Vision 2030’s sustainable development goals.

Kazakhstan Seeks BRICS Membership to Boost Economic Cooperation

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Kazakhstan Seeks BRICS Membership to Boost Economic Cooperation

 

Kazakhstan’s First Deputy Foreign Minister, Kairat Umarov, actively participated in the BRICS foreign ministers’ meeting held in Cape Town, South Africa, on 2 June, as Kazakhstan seeks to become a member of the influential alliance, aiming to strengthen trade and economic cooperation.

During the meeting, Umarov engaged in constructive discussions with counterparts, including Naledi Pandor, the South African Minister of International Relations and Cooperation. Their talks centered around deepening political and economic ties between Kazakhstan and the BRICS member countries, exploring avenues for collaboration within multilateral frameworks, and exchanging insights on pressing international and regional issues of mutual interest.

 We were making our way to the Rila Mountains, where we were visiting the Rila Monastery.

Kazakhstan’s active pursuit of BRICS membership

Kazakhstan’s interest in BRICS is driven by the alliance’s significant global presence, representing 35% of the Earth’s territory, 40% of the world’s population, and 30% of the global gross domestic product (GDP). Kazakhstan’s active involvement in the ministerial gathering reflects its commitment to pursue BRICS membership and tap into the extensive trade and economic opportunities offered by this influential group.

The event witnessed the participation of not only the BRICS member states but also the Friends of BRICS, a group comprising countries such as Argentina, Bangladesh, Burundi, Comoros, Democratic Republic of Congo, Egypt, Gabon, Indonesia, Iran, Kazakhstan, Saudi Arabia, the United Arab Emirates, and Uruguay. Kazakhstan’s invitation to the forum underlines its strategic role as the current chair of the CICA and its forthcoming chairmanship of the SCO (Shanghai Cooperation Organization).

Kazakhstan’s active pursuit of BRICS membership demonstrates its strong determination to foster trade and economic collaboration with the member countries, thereby enhancing its global economic footprint.

Safaricom Plans Smartphone Assembly Line in Kenya for Affordable Devices

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Safaricom Plans Smartphone Assembly Line in Kenya for Affordable Devices

 

Safaricom has announced its intention to establish a smartphone assembly factory in Kenya, aiming to produce more affordable devices. The company plans to assemble approximately 1.2 million to 1.4 million smartphones per year, positioning itself as a key player in the realization of President William Ruto’s vision of manufacturing Africa’s most economical gadgets.

During a session with the National Assembly’s Finance and Planning committee on Tuesday, Safaricom vehemently opposed the proposed taxes on mobile phones outlined in the Finance Bill of 2023. The telecommunications giant argued that these taxes would hinder their ability to achieve the target price of a $50 smartphone (Ksh6,900), as they would raise the cost of locally assembled smartphones to Ksh11,500 ($83).

Safaricom Reveals Plan To Set Up Smartphone Factory

Safaricom

Safaricom’s Head of Venture, Karanja Gichiri, emphasized the need to address import, excise, and output VAT (Value Added Tax) in order to realize the President’s vision of an affordable $50 phone. Gichiri urged the Members of Parliament to consider these factors, stating that by addressing them, it would be possible to save Ksh4,000 ($28.99) and lower the cost of locally assembled smartphones from Ksh11,500 to Ksh7,500 ($54.35).

Gichiri revealed that Safaricom is currently working on establishing an assembly line in Kenya. However, the proposed taxes would render the project economically unfeasible.

“At present, we have one local assembly line that recently commenced operations. The most expensive component of a smartphone is the microchip responsible for running the 4G network. We have identified suitable suppliers, and the cost of a good phone based on the chip and components stands at $40 (Ksh5,520),” Gichiri explained.

He further added, “Following that, the assembly of the phone would cost Ksh300 ($2.17), including factory profit margins. Our aim is to pass on these cost benefits to the consumers.”

Safaricom’s initiative to establish a smartphone assembly line in Kenya aligns with their commitment to making mobile devices more affordable for the general population. By addressing tax concerns and streamlining production costs, the telecommunications company hopes to contribute to the realization of President Ruto’s vision of accessible and cost-effective smartphones in Africa.

Uganda Announces Major Airfield Expansion to Boost Tourism

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Uganda Announces Major Airfield Expansion to Boost Tourism

 

KAMPALA – In a significant development for Uganda’s tourism sector, a major expansion plan was unveiled during the Peal of Africa Tourism Expo. The government announced that four airfields located in the country’s iconic National Parks will soon be upgraded to accommodate international visitors.

The Minister of Tourism, Wildlife and Antiquities, Tom Butiime, made the announcement at the expo held in Kampala. The plan entails the tarmacking and coding of airstrips in Kasese, Kidepo, Pakuba, and Kisoro National Parks. Additionally, immigration posts will be established in these areas, enabling visitors to directly land amidst the wildlife-rich landscapes teeming with elephants, antelope, and other species.

Uganda Announces Major Airfield Expansion to Boost Tourism

Rhino in Uganda

Describing the expansion as a “game changer,” Minister Butiime highlighted that the directive for these improvements came directly from President Yoweri Museveni. This development will allow tourists from destinations such as Dubai or Frankfurt to fly directly to these national parks on their private jets.

Previously, visitors had to go through Entebbe airport, near the capital Kampala, and then seek alternative transportation or travel by road to reach these locations as the existing airstrips were classified as “bush” airstrips.

Uganda has witnessed a strong rebound in visitor numbers in 2023 following the COVID-19 pandemic, with projections indicating a return to pre-pandemic levels next year. Presently, the country welcomes approximately 1.5 million visitors annually, contributing 7.7% to its GDP.

Lilly Ajarova, CEO of the Uganda Tourism Board, expressed the board’s readiness to host the tourism community once again. She emphasized the expo’s significance in driving the country’s tourism recovery and generating increased revenue and employment opportunities.

Ajarova emphasized Uganda’s commitment to responsible and sustainable tourism, which has become a growing trend worldwide. The focus will be on promoting the use of recyclable materials, waste reduction, and environmental conservation while respecting the host communities.

With 10 national parks, including the renowned Bwindi Impenetrable National Park, home to endangered mountain gorillas, Uganda offers diverse natural wonders and a rich cultural heritage. The expansion of airfields is set to facilitate easier access to these attractions, opening up new opportunities for tourists and boosting the country’s tourism industry.

Collaboration to Enhance Healthcare

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Collaboration to Enhance Healthcare

 

EIB and Afreximbank Launch EUR 200 million Health Investment Initiative in Sub-Saharan Africa

Collaboration to Enhance Healthcare and Pharmaceutical Investment and Strengthen Health Resilience

 The European Investment Bank (EIB), the world’s largest multilateral bank, and Afreximbank, the pan-African multilateral financial institution, have announced a strategic partnership aimed at bolstering healthcare and pharmaceutical investment across sub-Saharan Africa. The joint initiative, valued at EUR 200 million, was formally unveiled at the 5th United Nations Conference on Least Developed Countries in Doha, Qatar.

As part of Team Europe, the European Investment Bank supports high-impact health investments around the world.

European Investment Bank

The collaborative effort between the EIB and Afreximbank seeks to address critical healthcare challenges in the region while improving health resilience. By increasing access to healthcare services and supporting the production of safe and affordable medicines, the partners aim to combat prevalent diseases and enhance public health outcomes across sub-Saharan Africa.

Under the new health investment initiative, each institution will contribute EUR 100 million, marking the EIB’s first dedicated backing for intermediated health investment in Africa. The project forms part of the European Union Global Gateway initiative and has been meticulously designed by experts from both organizations to unlock vital investments in the healthcare sector.

With a focus on improving healthcare infrastructure and scaling up pharmaceutical production, the initiative aims to tackle diseases such as cancer, HIV, malaria, and tuberculosis. The partners will invest in the construction and equipping of clinics and hospitals, facilitating the swift treatment of communicable diseases and reducing infant mortality rates. Moreover, the collaboration aims to address the chronic shortage of essential medicines in the region, ensuring their availability to combat life-threatening ailments and improve maternal and child health.

Thomas Östros, Vice President of the European Investment Bank, emphasized the significance of the initiative: “As part of Team Europe, the European Investment Bank supports high-impact health investment around the world. The new EIB-Afreximbank health resilience initiative will unlock EUR 200 million of financing to strengthen health resilience across sub-Saharan Africa by improving access to healthcare and increasing local pharmaceutical manufacturing. This targeted financing cooperation between the EIB and leading financial partner Afreximbank demonstrates how partnership between Europe and Africa is improving lives and unlocking priority health investment.”

Mr. Denys Denya, Executive Vice President of Afreximbank, highlighted the urgency of the collaboration in light of the COVID-19 pandemic: “The coronavirus pandemic highlighted how the health of millions of Africans is uniquely threatened by limited access to both effective healthcare and affordable medicines. Afreximbank is pleased to join forces with the European Investment Bank to provide a co-lending facility of EUR 200 million to improve effective responses to health challenges across sub-Saharan Africa. This investment will build on the success of our existing cooperation designed to enhance access to finance by companies impacted by the pandemic and climate change-induced challenges.”

The partnership between the EIB and Afreximbank builds on their respective track records in supporting healthcare investments. Since the onset of the COVID-19 pandemic, the EIB has provided over EUR 12 billion globally for health-related projects, including vaccine development, hospital upgrades, and medical education. The bank has been actively involved in supporting health and healthcare investments in various African countries, contributing to the COVAX Covid vaccine initiative across the continent.
Afreximbank has played a pivotal role in Africa’s response to the COVID-19 crisis. Through initiatives like the Africa Medical Supplies Platform (AMSP) and the AVAT program, the financial institution has disbursed more than $7 billion to help member countries mitigate the adverse impacts of the pandemic on their economies and healthcare systems.

The EIB and Afreximbank collaboration signifies a milestone in enhancing healthcare and pharmaceutical investment in sub-Saharan Africa. By leveraging their financial resources, expertise, and global partnerships,

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