The official China-Africa Development Fund (CADF) recently tapped the government's massive foreign currency stash to support company expansions in Africa.
The fund's parent, China Development Bank (CDB), arranged the US$ 2 billion worth of eight- to 10-year loans at bargain interest rates after CADF's cash injection plan, some two years in the making, won State Council approval in March.
CADF data shows that it has invested in more than 30 projects. It has another 100 projects in reserve, and has made investment commitment for 30 projects worth US$ 1 billion.
"CADF's main task is to support Chinese companies expanding investment in Africa" with a focus on "a project's long-term development prospects," said Hu Zhirong, the fund's vice president. "Our primary goals are linking the fund to intergovernmental aid projects and helping more Chinese companies 'go abroad.'"
For CDB and the State Administration of Foreign Exchange (SAFE), which manages the nation's 3.2 trillion yuan foreign currency cache, channeling money through CADF also matches the government's interest in diversifying forex investments around the world.
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