China-Africa Development Fund

China-Africa Development Fund
Formation June 26, 2007[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 investment fund focusing on stimulating and facilitating Chinese investments in Africa. It is China's largest private equity fund focusing on African investments.[1]

Focus

CAD Fund's primary purpose is to serve Sino-African trade cooperation through market-based mechanisms by reducing risk to Chinese investors in Africa. It does this by providing bridging finance, financial advice, Africa specific managerial advice, and identifies potential investment opportunities. It also helps African projects find suitable Chinese investment partners. It aims to invest in low risk projects which provide sustained and consistent returns over a long period of time. This is partly done with the objective of helping Chinese firms operating in Africa to expand their market share, get closer to end consumers, or secure natural resources.[2]

History

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.[3]

Investments

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.[3] 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.[4] 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.[5]

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.[6]

See also

References

  1. ↑ 1.0 1.1 1.2 "Company Overview". CAD Fund website. CAD Fund. Retrieved 22 February 2012.
  2. ↑ "Investment Philosophy". CAD Fund. Retrieved 22 February 2012.
  3. ↑ 3.0 3.1 Yan, Zhou (28 May 2010). "CAD Fund to boost footprint in Africa". China Daily. Retrieved 22 February 2012.
  4. ↑ Stewart, Robb M. "Rio Tinto Accepts Chinese Bid for Kalahari Shares". Wall Street Journal. Retrieved 22 February 2012.
  5. ↑ "China seals cement deal with S Africa". The Financial Times. May 13, 2010.
  6. ↑ 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.