China is creating a fund for Africa
16.04.2012/XNUMX/XNUMX - A Chinese fund invests in the development of Africa to raise the standard of living on the continent.
The Sino-African Development Fund is changing its investment strategy. He is reinvigorating infrastructure, manufacturing and agriculture after receiving 1,5 billion in capital injection, said Hu Zhirong, vice president of the fund.
In addition to the topics of energy and resources, the fund is looking for new projects in the areas of "infrastructure, production, new energies and agriculture" to raise the African standard of living, he said in an interview. The direct investments from China to Africa last year increased by 59 percent compared to the previous year to 1.3 billion euros. During the same period, direct investments abroad have grown by 1.8 percent year on year to 45 billion euros, according to figures from the Ministry of Commerce. "There is great potential," as the region can attract a lot of investment year after year, Hu said. Annual direct investment in Africa is estimated at 60 to 68 billion euros, but China only contributes around 2 percent of that.
The fund was established in March 2007 with capital from the Chinese Development Bank. He received start-up capital of 700 million euros and received another 1,5 billion euros earlier this year. The fund has offices in South Africa, Ethiopia and Zambia and has invested in more than “50 projects valued at 1.3 billion euros,” Hu said. The fund announced last month that it had signed a contract with Xinjiang Goldwind Science & Technology, a leading Chinese wind turbine manufacturer, to advance the African market and transfer technology.
African states welcome foreign companies investing in the new energy sector, Hu said. And it seems to be the perfect production assembly. China has the technology and excess capacity while Africa needs industrial development.
(China Daily)
