China–Africa Development Fund
| Company type | China Government Guidance Fund |
|---|---|
| Founded | June 26, 2007[1] |
| Headquarters | Beijing, China |
Area served | China, Africa |
Key people | Zhao Jianping (Chairman) Chi Jianxin (President) |
| Parent | China Development Bank |
| Website | www.cadfund.com |
The China–Africa Development Fund (Chinese: 中非发展基金), or CAD Fund, is a China Government Guidance Fund funded by China Development Bank. It invests in African projects across power generation, transportation infrastructure, natural resources, and manufacturing.
History
The fund was announced by General Secretary Hu Jintao at the November 2006 Beijing summit of the Forum on China-Africa Cooperation as one of the "Eight Measures" for Sino-African relations. It launched in June 2007 with US$1 billion from China Development Bank.[1] A second fundraising round began in May 2010 targeting US$2 billion,[2] and in 2015 China announced plans to expand the fund to US$10 billion.[3]
Investment approach
The fund selects projects based on commercial merit rather than by country, targeting sectors critical to African development such as agriculture, manufacturing, and infrastructure. Primary recipients are Chinese enterprises operating in Africa. The Chinese government exempts the fund from corporate income tax on African investment earnings.[4][5]
The fund also supports Chinese special economic zones in Africa through grants, loans, and subsidies, though the Chinese government generally leaves zone development to enterprises working directly with host countries.[6]
Investments
- Jidong Cement plant (2010): Contributed 382.5 million ZAR toward a 1.65 billion ZAR Jidong Cement plant in Limpopo.[7]
- Husab Mine (2012): Formed a joint venture with China National Nuclear Corporation to acquire the uranium mine for US$996 million.[8]
- Independent News and Media SA (2013): Acquired 20% stake for 400 million ZAR.[9]
- Leather factory (2009): Joint venture with Xinxiang Kuroda Mingliang Leather Co. investing ~US$27 million near Addis Ababa; also helped establish the Ethiopian Eastern Industrial Zone.[10][11]
- Asogli power plant: Ghana's first privately owned power plant, located in Tema.[12]
- Africa World Airlines: Equity stake in the Ghanaian carrier.[13]
- Hydro-power and infrastructure: Over US$16 million in investments and support for the LAPSSET corridor project.[14]
- Bong County iron ore mine: Acquired 85% stake from China-Union Mining in 2007; sold 60% to WISCO International in 2010.[5]
- Cotton and copper: Cotton cultivation and copper mining projects.[15]
- Huayou Cobalt (SSE: 603799): 7.59% stake.[16]
See also
References
- ^ a b "Company Overview". CAD Fund website. CAD Fund. Archived from the original on 14 November 2013. Retrieved 22 February 2012.
- ^ Yan, Zhou (28 May 2010). "CAD Fund to boost footprint in Africa". China Daily. Retrieved 22 February 2012.
- ^ Murphy, Dawn C. (2022). China's rise in the Global South: the Middle East, Africa, and Beijing's alternative world order. Stanford, California. p. 74. ISBN 978-1-5036-3060-4. OCLC 1249712936.
{{cite book}}: CS1 maint: location missing publisher (link) - ^ Zhang, Zezhong (2013). 新时期中非经贸合作机制研究. Shanghai: Shanghai People's Press. ISBN 9787208113114.
- ^ a b Wei, Jianming (2012). 中国税收优惠政策及其应用 2012. Beijing: 中国税务出版社. ISBN 9787802358560.
- ^ Murphy, Dawn C. (2022). China's rise in the Global South: the Middle East, Africa, and Beijing's alternative world order. Stanford, California: Stanford University Press. p. 177. ISBN 978-1-5036-3060-4. OCLC 1249712936.
- ^ "China seals cement deal with S Africa". The Financial Times. May 13, 2010.
- ^ Stewart, Robb M. (February 2012). "Rio Tinto Accepts Chinese Bid for Kalahari Shares". The Wall Street Journal. Retrieved 22 February 2012.
- ^ 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.
- ^ Geda, A.; Meskel, A.G. (2009). "Impact of China-Africa Investment Relations: Case Study of Ethiopia". African Economic Research Consortium.
- ^ Brautigam, D.; Tang, X. (2012). "An overview of Chinese agricultural and rural engagement in Ethiopia". International Food and Policy Research Institute.
- ^ Schickerling, E. J. (2012). The role of the China Africa Development Fund in China's Africa policy (Thesis). Stellenbosch University.
- ^ "Africa: Ghana's leading carrier, Africa World Airlines takes delivery of 7th aircraft". 29 October 2018.
- ^ Ombaba, K. M. B.; Arogo, P. A.; Bii, P.; Omuya, J.; Ongeri, L.; Kabuka, P. O. (2012). "A study on the impact of China's investments in Africa: the case of Kenya". Sabinet African Journals. hdl:10520/EJC127664.
- ^ Mushota, C. E. (2021). "China in Africa: Partner or Exploiter? The Case of Zambia". CUNY Academic Works.
- ^ 华友钴业关于公司股东中非发展基金减持股份计划的公告 (in Chinese)