The unique relationship between China and Africa continues to yield fruitful dividend in so much that the existing trust has brought about an increase in investments between the two people.

Trade between Africa and China reached US$188 billion in 2015, and the first half of 2017 recorded US$85.3 billion, marking a growth of 19%. The stock of Chinese investment in Africa amounted to US$35 billion in 2016 and is expected to reach US$100 billion by 2020.

CAD Fund has been making great efforts to promote cooperation with African countries to build economic and trade parks, assist enterprises in attracting investment, encourage Chinese enterprises to invest and build factories in Africa so as to improve the processing and export capacity of African countries, help balancing their trade and boost economic developement.

China-Africa Development Fund (CAD Fund) officials brief African journalists.

In recent years, China is entering a new era with rapid development of direct investment in African countries. Some enterprises are involved in expanding market share, locating closer to the end consumer, or seeking natural resources. With the backdrop of economic globalization, within the framework of market-based systems, CAD Fund seeks to apply its many advantages, including identification of policy, risk control, and value added services, to make an active contribution to cooperation between Chinese and African enterprises and the establishment of the new strategic partnership between China and Africa.

CAD Fund Management Team

In January-November 2016, the non-financial direct investment flow from Chinese enterprises to Africa increased 25%, with more than US$3 billion. 2017 marks an important year of the implementation of the “13th Five-Year” plan, as well as a year of deepened structure reform of supply side.

According to the Ministry of Commerce, China's trade with African countries in the first quarter of 2017 increased almost one-fifth from a year earlier, while its direct investment flew 64%. This is mainly due to policy benefits from a cooperative framework laid down by the Chinese and African leaders in FOCAC Summit in South Africa in 2015.

Chinese President Xi Jinping announced assistance and loans totaling $60 billion for Africa to bolster the continent’s development in three years in 10 key areas at a summit in Johannesburg in 2015.

The Ministry of Commerce earlier this year reported that China's total trade with Africa rose 16.8 percent to $38.8 billion in the first quarter; this is due to a 46 percent jump in annual imports from Africa in the first quarter with agricultural imports rising 18 percent, while Chinese exports recorded a smaller fall of 1 percent from a year earlier. The China-Africa trade relations are often dominated by big natural resource agreements.

CAD Fund, according to Vice President Wang Yong, serves as a new era in the China-Africa relations and has played a significant role in giving opportunities to Chinese companies to invest in 36 African Countries with about one hundred projects and has created 74, 000 local employment as at present. All projects seek to generate US$2 billion on export and US$1 billion on local taxes.

Note: Abu Bakarr Kargbo is a Senior Staff Writer of Standard Times Newspaper in Sierra Leone and an Intern at People’s Daily Online.