The China African Development (CAD) has invested in 88 projects in 37 African countries since it was established in 2007. The projects are in areas including infrastructure, processing and manufacturing, and energy and mineral resources
And that is investment worth US$ 4 billion U.S. dollars according to the fund. Its projects have also enabled loans amounting to US$17 billion to the African countries as further financing for the projects.
One US Dollar for Five
“Every U.S. dollar the CAD Fund invests attracts some five U.S. dollars of investment from Chinese companies and banks , the Fund further said, adding that “with an initial seed fund of 1 billion U.S. dollars, the CAD Fund was set up to diversify financial vehicles to facilitate Chinese investment in Africa.”
CAD is a Chinese private equity fund solely funded by China Development Bank, a Chinese government policy bank. Its official aim is to “stimulate investment in Africa by Chinese companies in power generation, transportation infrastructure, natural resources, manufacturing, and other sectors.”
Quick Growth of CAD
The initial one billion dollars funding by the China Development Bank was projected to grow to US$5 billion “in the future.” The fund entered into its second round of fundraising in May 2010 to raise US$2 billion.
By 2010 the fund had invested in 30 projects in Africa worth around US$800 million. In 2009 alone, the fund invested US$140 million of China’s total US$1.3 billion invested in Africa that year.
In Kenya CAD recently signed a memorandum of understanding (MoU) with the Kenyan government to develop 20,000 housing units for civil servants.
During the signing ceremony, the fund said it now has a capital reserve totaling 10 billion U.S. dollars to assist Chinese business community in Africa.