China Africa Development Fund (CAD Fund), an equity investment fund managed by China Development Bank, is to reach its full size of funding of 5 billion U.S. dollars this year, the fund's new-coming president said Wednesday.
CAD Fund President Shi Jiyang revealed the information at a press briefing after a two-day African investment workshop hosted by the World Bank, China Development Bank, among others in the Ethiopian capital.
"As the new president, my priority is to secure the funding of the extra 2 billion U.S. dollars," Shi said, adding that the fund will then be able to progressively invest in projects, particularly those have the potential spur manufacturing growth at a continent that still relies heavily on raw resource export to sustain the economy.
CAD Fund was set up in 2007 to diversify the financial vehicles that facilitate Chinese investment to Africa. China Development Bank provided the initial seeding fund of 1 billion U.S. dollars before chipping in another 2 billion U.S. dollars in 2012.
So far, the fund has invested 2.3 billion U.S. dollars in 80 projects ranging from infrastructure, manufacturing, agriculture, power stations, power transmission to industrial zones in more than 30 African countries.
Shi said he was approached by the Ethiopian government to invest in a huge industrial park in planning that can cover up to 80 square kilometers and is strategically located near the railway.
"We have confidence in Africa, especially Ethiopia, which has all the fundamentals for success," said Shi as he expelled out the factors of population, location, and strong political ties with China. Already, CAD Fund has invested in two manufacturers located in Addis Ababa's Eastern Industrial Park including a shoemaker that employs 3,500 local workers and produces 2 million shoes a year.
