China-Africa Development Fund

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China-Africa Development Fund
CADfund logo.png
Formation June 26, 2007; 8 years ago (2007-06-26)[1]
Headquarters Chemsunny World Trade Centre, Chang'an Avenue
Location
Region served
Africa
Official language
Mandarin Chinese
English
French
President
Chi Jianxin (迟建新)
Chairman
Zhao Jianping (赵建平)
Website www.cadfund.com

The China-Africa Development Fund, more commonly known as CAD Fund, is a Chinese private equity fund solely funded by China Development Bank, a Chinese government policy bank. The aim of the fund is to stimulate investment in Africa by Chinese companies in power generation, transportation infrastructure, natural resources, manufacturing, and other sectors.

History[edit]

The creation of CAD Fund was announced as one of the "Eight Measures" for Sino-African relations at the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) by President Hu Jintao on November 4, 2006. It was established in June 2007 with US$1 billion of initial funding by the China Development Bank and is envisioned to grow to US$5 billion in the future.[1] The fund entered into its second round of fundraising in May 2010 to raise US$2 billion.[2]

Investments[edit]

The fund's primary purpose is foster Sino-African investment through bridging finance, financial advice, Africa specific managerial advice, and identification of potential investment opportunities as well as connecting African projects to Chinese investors.

As of 2010 the fund had invested in 30 projects in Africa worth around US$800 million. In 2009 alone, the fund invested US$140 million of China's total US$1.3 billion invested in Africa that year.[2] The fund is focused on industrial development and the acquisition of stakes in mining interests such as its joint purchase with China Guangdong Nuclear Power Group for Rio Tinto's 11.1% share in Kalahari Minerals valued at US$996 million in February 2012.[3] The fund in 2010 teamed up with several partners by contributing 382.5 million ZAR into a 1.65 billion ZAR investment by Jidong Cement to build a cement plant in Limpopo, South Africa.[4]

In December 2013 the fund was one of two Chinese state owned enterprises that invested a total of R400 million to acquire 20% of Independent News and Media SA, a newspaper publishing house in South Africa.[5]

See also[edit]

References[edit]

  1. ^ a b "Company Overview". CAD Fund website. CAD Fund. Retrieved 22 February 2012. 
  2. ^ a b Yan, Zhou (28 May 2010). "CAD Fund to boost footprint in Africa". China Daily. Retrieved 22 February 2012. 
  3. ^ Stewart, Robb M. "Rio Tinto Accepts Chinese Bid for Kalahari Shares". Wall Street Journal. Retrieved 22 February 2012. 
  4. ^ "China seals cement deal with S Africa". The Financial Times. May 13, 2010. 
  5. ^ Sam Sole and Craig Mckune (28 August 2014). "What's black and white and in the red all over?". Mail and Guardian. Retrieved 8 September 2014.