(Ecofin Agency) - The Asian Infrastructure Investment Bank (AIIB), a multilateral financial institution established by China in 2015, plans to invest $1 billion in Africa to enhance connectivity and growth. The information was reported today by Bloomberg, which cited a senior executive from the bank.

"Only 4% of the $52 billion in financing disbursed by the bank since its inception has gone to Africa, while the infrastructure financing gap on the continent is estimated at around $700 billion," said AIIB President Jin Liqun.

"The AIIB has a pipeline of seven projects, including green energy projects in Egypt and Madagascar and water supply projects in Morocco," he added. The bank is also collaborating with Côte d'Ivoire to develop a multi-year loan program for infrastructure projects.

Jin noted that Kenya, Côte d'Ivoire, and Nigeria will play crucial roles in expanding the AIIB's portfolio on the continent in the coming years. He also mentioned that Senegal, Tanzania, and Mauritania are among the countries finalizing procedures to join the bank, which already includes 16 African member countries.

The institution plans to offer guarantees for panda and samurai bond issuances, which are gaining interest among African nations.

The AIIB, with 109 member countries, represents an effort by Beijing and its allies to challenge Western dominance over the governance of existing multilateral financial institutions like the International Monetary Fund (IMF) and the World Bank.