China-Africa Development Fund's cumulative investment in Africa exceeds $5 billion

Source from the Financial Times

Reporter Li Guohui

Recently, the reporter learned from the China-Africa Development Fund that as a product of the China-Africa Cooperation Forum and China's first equity fund focusing on investment in Africa, the China-Africa Development Fund has invested more than US $5 billion in Africa, completing all the initial design scale of investment. In the future, the fund will use the early investment exit funds and investment income rolling operation, continue to guide Chinese enterprises to increase investment in Africa, and choose the opportunity to activate the additional $5 billion scale commitment of shareholders, towards the target of $10 billion investment in Africa.

China-Egypt TEDA Suez Economic and Trade Cooperation Zone invested by China-Africa Development Fund

It is understood that the China-Africa Development Fund was announced by the Chinese government at the Beijing Summit of the Forum on China-Africa Cooperation in 2006. It aims to encourage and support Chinese companies to invest in Africa. The initial design scale is 5 billion US dollars. It was undertaken by the China Development Bank and opened in 2007. operation. In 2015, President Xi Jinping announced at the Johannesburg Summit of the Forum on China-Africa Cooperation that he would increase the capital of the China-Africa Development Fund by US $5 billion, with a total scale of US $10 billion.

Since its establishment 15 years ago, the China-Africa Development Fund has always adhered to the concept of true friendship and sincerity and the correct concept of righteousness and benefit, actively leveraged the advantages of investment and loan coordination with the China Development Bank, supported Chinese companies' investment in Africa in a market-oriented manner, and promoted the "Ten Major Cooperation" of the Forum on China-Africa Cooperation. The implementation of measures such as "Plan", "Eight Major Actions" and "Nine Projects" has played a pilot demonstration role in the joint construction of China and China-Africa. Up to now, the China-Africa Development Fund has set up 5 representative offices in South Africa, Zambia, Ghana, Ethiopia, and Kenya, and its business covers the entire Africa. The cumulative investment decisions in 39 African countries have exceeded 6.6 billion U.S. dollars, and the coverage rate in 54 African countries has reached 72%, leveraging Chinese companies to invest and finance 31 billion U.S. dollars in Africa, and the cumulative actual investment in Africa is 5.085 billion U.S. dollars, it has supported a number of typical projects such as Hisense South Africa Home Appliance Park, Deep Energy Ghana Power Plant, Renfu Mali Pharmaceutical Plant, Mozambique Agricultural Park, TEDA Egypt Suez Economic and Trade Park, Huaxin Cement Tanzania Energy Saving and Environmental Protection Cement Plant, which have effectively improved the level of local economic development and increased local employment and tax revenue.

In recent years, the China-Africa Development Fund has responded positively to the spirit of the "Nine Projects" of the eighth ministerial meeting of the Forum on China-Africa Cooperation and the third "Belt and Road Initiative" construction forum, striving to overcome the impact of the new coronary pneumonia epidemic, increasing innovation in investment methods and areas, and promoting cooperation in major projects with high standards, sustainability and people's livelihood, and "small and beautiful" projects, with good results. For example, in the field of green development, the China-Africa Development Fund and Hubei Huaxin Cement Co., Ltd. completed the investment and acquisition of Tanzania's Maveni Cement Plant and the transformation of green energy-saving technology, and upgraded the equipment of energy-saving, dust collection, waste heat power generation and other equipment for the plant that had been operating stagnant all the year round, reducing carbon emissions by about 35000 tons per year, and for the local to create hundreds of jobs, shaping a good brand image made in China. In the field of digital innovation, the China-Africa Development Fund actively responds to the demands of African countries for cooperation in new industries such as digital infrastructure, digital economy, and smart cities, and plays the role of "planning and guiding investment". Through strategic stakes in China Telecom and China Mobile, it supports and guides the planning and development of leading Chinese communications industry enterprises with world advanced technology in Africa, and promotes the construction of optical fiber backbone networks, submarine optical cables, data centers, etc, and cooperate with international mainstream operating service providers to achieve full coverage of information services in Africa. On this basis, actively serve the development of local community distance education, telemedicine and other livelihood undertakings, and benefit the local people with the results of project cooperation. In the field of infrastructure construction, the China-Africa Development Fund has innovatively subscribed for China's first "Belt and Road" renewable corporate bonds to provide financial support to Shaanxi Construction Engineering, a Chinese engineering contractor, to help it continue to implement water supply, roads, universities, stadiums and other infrastructure projects and "small, beautiful and beneficial to the people's livelihood" projects in Africa, thus effectively solving the problem of project interruption caused by the debt difficulties of African countries.

It is reported that the China-Africa Development Fund has also been entrusted to manage the China-Portugal Cooperation and Development Fund under the framework of the China-Portugal Cooperation Forum, with a total scale of US $1 billion. It is committed to promoting economic and trade cooperation between China and Portuguese-speaking countries and regions through investment. Many Portuguese-speaking countries and regions have invested in projects in agriculture, photovoltaics, ports, manufacturing, and finance.

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