Development fund grows investments in Africa

South Africa and China may be thousands of miles apart, but the two countries have much to offer each other. With trade and investment relations continuing to grow since the commencement of diplomatic relations in 1998, more opportunities are created year on year. More recently in the form of the opening of the first South African office of the China-Africa Development Fund (CADFund) in Johannesburg earlier this year, which saw China bolstering the fund by an additional R19.8 million. Based in Beijing, the CADFund, an equity investment fund supporting and encouraging the investment by Chinese enterprises in Africa, has a total fund size of $5 billion. Established in June 2007 following a pledge by Chinese President Hu Jintao to deepen Chinese aid to Africa, the fund has more than 20 investments in Africa totalling nearly R3.9 billion at present. According to a spokesman for the fund the Johannesburg office was opened in order to boost economic development between China and Africa. “The creation of the representative office in South Africa is a further step in the Cadfund’s” investment expansion in Africa,” said the spokesman. “In the future the CADFund will gradually establish representative offices throughout Africa in order to increase investments by Chinese enterprises in the region, promote economic cooperation between China and African countries, and realise mutual benefits.” Projects that have seen the light thanks to the fund include the Ghana Power Plant, the Lekki Trade Zone in Nigeria, the Egyptian Suez Trade Park and the Ethiopian Hanson International Glass factory.