Approved by China’s State Council, the China-Africa Development Fund, or CAD Fund, has raised another $2 billion in its third round of fund-raising to reach its $5 billion target, the fund announced recently.
The capital raising, realized days ahead of the Johannesburg summit of the Forum on China-Africa Cooperation (FOCAC), highlights the significance of Chinese investment in Sino-African cooperation. It will provide more financial support to Sino-African cooperation and give an impetus to Chinese companies’ investment into the continent.
Established after the Beijing summit of the FOCAC, the CAD Fund is managed by the China Development Bank with the aim to boost the investment in Africa by Chinese companies.
The fund has invested nearly $3.2 billion into more than 80 projects in 35 African nations, ranging from infrastructure, production capacity, equipment, agriculture, people’s welfare and energy development
After being launched, these projects will bring the continent $16 billion investment and create 1 million jobs. They will also generate $2 billion in foreign exchange and $1 billion of tax revenue for Africa.
In the long run, the fund will better serve Sino-African cooperation by boosting its investment in railway, highway and aviation networks as well as in production capacity. (Source: People’s Daily)