China-Africa Development Fund invests over US$5 billion in Africa

Seetao 2022-12-21 09:06
  • China-Africa cooperation in infrastructure and other fields has injected new energy into Africa's social and economic development
  • In the future, the fund will continue to guide Chinese companies to increase investment in Africa and move towards the goal of investing US$10 billion in Africa
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Looking forward to the China-Africa cooperation in the new era, the friendship between China and Africa will become everlasting. One is the largest developing country, and the other is the continent with the most concentrated developing countries. China and Africa are thousands of miles apart but cooperate closely. Recently, the reporter learned from the China-Africa Development Fund that as a product of the Forum on China-Africa Cooperation and China’s first equity fund focused on investing in Africa, the China-Africa Development Fund’s cumulative investment in Africa has exceeded US$5 billion, completing all investments in the initial design scale . In the future, the fund will continue to guide Chinese companies to increase their investment in Africa by using the initial investment exit funds and investment income in a rolling operation, and will choose an opportunity to use the additional $5 billion commitment of shareholders to move towards the goal of investing $10 billion in Africa.

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 enterprises to invest in Africa. The initial design scale is 5 billion US dollars. It is undertaken by the China Development Bank and opened in 2007. operate. In 2015, President Xi Jinping announced at the Johannesburg Summit of the Forum on China-Africa Cooperation to increase the capital of the China-Africa Development Fund by US$5 billion, bringing the total scale to US$10 billion.

Since its establishment 15 years ago, the China-Africa Development Fund has always adhered to the concept of sincerity, amity and sincerity and the correct concept of righteousness and profit, and actively leveraged its advantages in synergy with the China Development Bank in investment and lending to support Chinese enterprises in investing in Africa in a market-oriented manner, promoting the "Top Ten Funds" of the Forum on China-Africa Cooperation. Measures such as the "Cooperation Plan", "Eight Major Actions" and "Nine Projects" have been implemented, and they have played a pilot role in the joint construction of the Belt and Road Initiative between China and Africa. Up to now, the China-Africa Development Fund has established 5 representative offices in South Africa, Zambia, Ghana, Ethiopia, and Kenya, covering the whole of Africa. It has accumulatively invested more than 6.6 billion U.S. dollars in 39 African countries and covered 54 African countries. 72%, mobilizing Chinese enterprises to invest and finance 31 billion U.S. dollars in Africa, with a cumulative actual investment of 5.085 billion U.S. dollars in Africa, involving infrastructure, agriculture and people's livelihood, production capacity cooperation, industrial parks and other fields that are urgently needed for Africa's development, and supported Hisense South Africa Home Appliance Park, A batch of typical projects such as Shenzhen Energy Ghana Power Plant, Renfu Mali Pharmaceutical Factory, Mozambique Agricultural Park, TEDA Egypt Suez Economic and Trade Park, Huaxin Cement Tanzania Energy Conservation and Environmental Protection Cement Plant have effectively improved the level of local economic development, increased local employment and tax revenue, and have been favored by African countries. Widely praised by the government and the public.

In recent years, the China-Africa Development Fund has actively responded to the "Nine Projects" of the Eighth Ministerial Conference of the Forum on China-Africa Cooperation and the spirit of the Third Belt and Road Construction Symposium, striving to overcome the impact of the new crown pneumonia epidemic and increasing investment methods and areas Innovation, committed to promoting high-standard, sustainable, and people-friendly major projects and "small but beautiful" project cooperation, and achieved 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 the Maweni Cement Plant in Tanzania and the transformation of green and energy-saving technologies, and upgraded equipment such as energy conservation, dust collection, and waste heat power generation for factories that have been stagnant all year round. , reducing carbon emissions by about 35,000 tons per year. After the resumption of operation, the products of the project are sold well in the local area, some of which are exported to neighboring countries in East Africa, and create hundreds of jobs for the local area, shaping a good brand image of Made in China.

In the field of digital innovation, the China-Africa Development Fund actively responds to African countries' demands for cooperation in new industries and formats such as digital infrastructure, digital economy, and smart cities, and plays the role of "planning investment and guiding investment". Guide the leading enterprises in China's communications industry with world-leading technologies to plan and develop in Africa, promote the construction of optical fiber backbone networks, submarine optical cables, data centers, etc., and cooperate with international mainstream operation service providers to realize the information of "network + point + area" in Africa Full coverage of services. On this basis, actively serve the development of local communities such as distance education and telemedicine, and benefit the local people with the results of project cooperation.

In the field of infrastructure construction, the China-Africa Development Fund innovatively subscribed for China's first Belt and Road renewable corporate bond, providing financial support for Chinese engineering contracting company Shaanxi Construction Engineering, and helping it continue to implement water supply and roads that the Chinese and African governments are concerned about in Africa , Universities, stadiums and other infrastructure and "small but beautiful, benefiting people's livelihood" projects have effectively solved 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 with the management of the Sino-Portuguese Cooperation and Development Fund under the framework of the China-Portuguese 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. Brazil and other Portuguese-speaking countries and regions have invested in projects in fields such as agriculture, photovoltaics, ports, manufacturing, and finance. Editor/Xu Shengpeng