The China-Africa Development Fund has set up an office in Nairobi that will be a Regional Centre for trade and investment in Kenya and the East African region. The fund is one of the “Eight Measures” for China-Africa practical cooperation announced by the Chinese government on the Beijing summit of the Forum on China-Africa cooperation.
Inaugurated on June 26th 2007, CADFund aims at encouraging and supporting Chinese enterprises to invest in Africa and it is operated by the China Development Bank (CDB). In 2015, Chinese president Xi Jinping announced an additional US$ 5 billion for the China-Africa development fund which makes the fund reach a designed total capita of US#10 billion.
The fund has invested in agriculture, infrastructure, manufacturing, industrial parks and resource development. As China’s primary medium- and long-term investment and financial services provider, China Development Bank Corporation (“CDB”) is committed to the development of infrastructure and, basic and pillar industries (BIP) through financing.
In the course of supporting economic and social development, CDB explores a new development path with Chinese characteristics, forms a development pattern with core business in BIP, grassroots finance and international cooperation, and becomes an indispensable part of China’s financial system. As the shareholder of CADFund, CDB has rich investment and lending experience, a diverse pool of experts, a well-fledged operation and management mechanism and a global business network. It provides a solid foundation for the development of CADFund.
With the aim to enhance China-Africa economic cooperation and promote Africa’s development, CADFund serves as a bridge to promote cooperation between Chinese and African enterprises through direct investment. It helps to boost economic and social development of host countries and further develop a new type of China-Africa strategic partnership.
Unlike China’s economic aid to Africa, CADFund does not allocate its projects by countries but operates independently through market-based mechanisms and bears risks on its own. The fund provides funding for enterprises which have investment opportunities but insufficient capital, explores investment opportunities for enterprises which have capital but no projects, seeks Chinese investors for African projects, and shares risks with enterprises which have projects and capital but unwilling to bear risks on their own.
The investments inject vibrancy into the China-Africa economic and trade cooperation in the new era, create positive economic and social outcomes, consolidate the foundation for the development of African economy, strengthen Africa’s capacity to develop on its own and enhance Africa’s competitiveness in the global economic landscape.
The event was graced by Kenya’s Cabinet Secretary in charge of the national Treasury Hon. Henry Rotich and his counterpart in charge of Transport, Infrastructure, Housing and Urban Development Hon. James Macharia, CADFund Vice president Mr. Wang Yong, CADFund chairman Mr. Chi Jianxin and the chief of urban economy and finance branch at UNHABITAT Dr. Xing Quan. Other local institutions represented were the Kenya Agribusiness and Agroindustry Alliance (KAAA) and the Kenya Investment Authority (KenInvest).
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