CDB News

China-Africa Development Fund Promising to Invest over USD 4.4 Billion in Africa

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Time:2017-06-26  Source:CDB

The China-Africa Development Fund(CADF), China’s first private equity fund that focuses on investments in Africa, is reported to have promised to invest over USD 4.4 billion in 36 African countries in the past 10 years since its establishment, and is expected to drive over USD 20 billion of Chinese investment in Africa as a main platform for Chinese investment in Africa.

The projects funded by the CADF investment cover a wide range of areas, including infrastructure, production capacity cooperation, resource development and livelihood. When all projects are implemented, they will contribute to a production capacity of 11,000 medium and heavy duty trucks, 300,000 air conditioners, 450,000 refrigerators, and 560,000 TV sets, along with an increase of over USD 2 billion of export from Africa, and a tax income of over USD 1 billion, which will largely improve the development capacity in the invested countries, directly benefiting over 1 million local people. In addition, some of the projects have helped local communities establish public facilities including 9 roads (about 500km long in total), 4 hospitals and 9 schools. These projects are highly recognized by both the governments and the general public of the invested African countries.

The CADF funded by CDB officially came into operation on June 26, 2007 as one of the eight policy measures on pragmatic cooperation between China and Africa proposed by China at the Beijing Summit of the Forum on China-Africa Cooperation in 2006. In December 2015, President Xi Jinping announced at the Johannesburg Summit of the Forum on China-Africa Cooperation that the CADF would be increased to USD 10 billion.

According to CADF sources, during the past 10 years since its establishment, the CADF has taken advantage of the comprehensive resources of CDB in investment and financing to actively facilitate the trade cooperation between China and Africa with market-oriented approaches. It has served as a bridge for friendly cooperation in investment between China and Africa by providing opportunities for cooperation between Chinese and African companies through consulting services as well as financial support and risk sharing.

The fund has proved to be an effective model of serving national strategies with market-oriented approaches in support of the efforts of Chinese enterprises to develop long-term business in Africa countries. In the meanwhile, the CADF operates with a focus on making responsible investment in what Africa needs most for development to help address the bottleneck of local capital inadequacy through direct investment, thus providing continuous driving force for the economic development in Africa.

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