Misplaced Pages

China-Africa Development Fund

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.

The China-Africa Development Fund ( Chinese : 中非发展基金 ), more commonly known as CAD Fund , is a China Government Guidance Fund solely funded by China Development Bank , a Chinese government policy bank. The aim of the fund is to stimulate investment in Africa by Chinese companies in power generation, transportation infrastructure, natural resources, manufacturing, and other sectors.

#121878

57-792: The creation of CAD Fund was announced as one of the "Eight Measures" for Sino-African relations at the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) by President Hu Jintao on November 4, 2006. It was established in June 2007 with US$ 1 billion of initial funding by the China Development Bank and is envisioned 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. In 2015, China announced its plan to expand

114-643: A 1.65 billion ZAR investment by Jidong Cement to build a cement plant in Limpopo , South Africa . The fund has also participated in acquiring natural resource assets by forming a joint venture with China National Nuclear Corporation (then China Guangdong Nuclear Power Group) to acquire most of the Husab Mine for US$ 996 million in February 2012. The fund made a rare move in media in December 2013 when it

171-483: A 60% stake to WISCO International Resource Development & Investment Limited. Sino-African relations Sino–African relations , also referred to as Africa–China relations or Afro–Chinese relations , are the historical, political, economic, military, social, and cultural connections between China and the African continent . Little is known about ancient relations between China and Africa, though there

228-644: A dangerous python, they converted to Islam and married local women. Now, they are believed to have just six descendants remaining there. In 2002, DNA tests conducted on one of the women confirmed that she was of Chinese descent. Her daughter, Mwamaka Sharifu, later received a PRC government scholarship to study traditional Chinese medicine (TCM) in China. National Geographic published an article by Frank Viviano in July 2005 about his visit to Pate Island . During his time on Lamu, ceramic fragments had been found which

285-784: A declaration during a meeting of the China-Arab States Cooperation Forum (CASCF) which expressed appreciation for China's efforts to resolve its maritime and territorial disputes through dialogue and negotiation. The declaration also stated that the United Nations Convention on the Law of the Sea signatories should have the right to choose their own approach to resolving maritime issues. Various subregional multilateral groups in Africa, including

342-721: A joint letter to the United Nations Human Rights Council (UNHRC) defending China's treatment of Uyghurs and other Muslim minority groups in the Xinjiang . Algeria, Burkina Faso, Republic of Congo, Djibouti, Nigeria, Somalia, and Zambia were among the 16 countries that defended China's policies in Xinjiang in 2019 but did not do so in 2020. In 2021, ambassadors from Burkina Faso, Republic of Congo, and Sudan made statements in support of China's Xinjiang policies. African countries which are members of

399-699: A joint venture with the Xinxiang Kuroda Mingliang Leather Co. Ltd, the CAD Fund invested roughly US$ 27 million towards a large leather product factory close to Ethiopia's capital, Addis Ababa . The Fund has also helped establish Ethiopia's special economic zone in collaboration with Chinese companies called the Ethiopian Eastern Industrial Zone (EEIZ). Wherein several independent investment projects are undergoing with potential for large job creation for

456-462: A large sum of money, without any fear. Silk is used for clothing even by poor monks and beggars. Its porcelains are the finest of all makes of pottery and its hens are bigger than geese in our country. The 14th-century visit of Sa'id of Mogadishu , the Somali scholar and explorer was another point of Medieval contact between Africa and China. The Ming dynasty admiral, Zheng He, and his fleet rounded

513-662: A medieval stone city located in present-day Zimbabwe . According to Melanie Yap and Daniel Leong Man in their book "Colour, Confusions, and Concessions: the History of Chinese in South Africa", Chu Ssu-pen, a Chinese mapmaker in 1320, had southern Africa drawn on one of his maps. Ceramics found in Zimbabwe and South Africa dated back to the Song dynasty . Some tribes to Cape Town's north claimed descent from Chinese sailors during

570-641: A ten-country tour of Africa between December 1963 and January 1964. Zhou Enlai visited Ghana and established close relations with Kwame Nkrumah , who desired a united Africa. Relations at that time often reflected China's foreign policy in general: China "began to cultivate ties and offer...economic, technical and military support to African countries and liberation movements in an effort to encourage wars of national liberation and revolution as part of an international united front against both superpowers". Mao Zedong viewed Africa (along with Latin America) as

627-752: Is a triennial high-level forum between China and the African nations. FOCAC is the primary multi-lateral coordination mechanism between African countries and China. At the 2018 FOCAC summit, Xi Jinping emphasized the "Five Nos" which guide its foreign policy in dealing with African countries and other developing countries: (1) non-interference in other countries' pursuit of development paths suitable to their national conditions, (2) non-interference in domestic affairs, (3) not imposing China's will on others, (4) not attaching political conditions to foreign aid, and (5) not seeking political self-interest in investment and financing. In May 2016, ten African countries signed

SECTION 10

#1732772840122

684-407: Is some evidence of early trade connections. Highlights of medieval contacts include the 14th-century journey of Moroccan scholar Ibn Battuta , the 14th-century visit of Somali scholar and explorer Sa'id of Mogadishu and the 15th-century Ming dynasty voyages of Chinese admiral Zheng He . Modern political and economic relations between mainland China and the African continent commenced in

741-687: The Economic Community of West African States (ECOWAS) and the East African Community (EAC) also engage with China. For a permanent UN seat for Africa, Nigeria , the largest African country, relies on Chinese support while Egypt looks to the U.S. for backing. In 2022, the African Union announced its move to establish a delegation with a resident Ambassador to Beijing , China. From 1991 until at least 2023, each Chinese foreign minister's first overseas visit of

798-833: The Hong Kong national security law at the UNHRC. The International Liaison Department of the Chinese Communist Party has served as the principal body coordinating party-to-party relations between African countries and China. In February 2022, the Mwalimu Julius Nyerere Leadership School opened in Tanzania, with US$ 40 million in funding by the Central Party School of the Chinese Communist Party . The school

855-715: The Human Rights Council generally align more frequently with China than with the United States, France, and the United Kingdom. The General Assembly votes of African countries and China have also generally aligned. From the Chinese perspective, collaboration with the African Union and African subregional bodies (such as ECOWAS , SADC , and COMESA ) is attractive because these bodies function largely independent of Western influence. China and

912-761: The National Front for the Liberation of Angola ( FNLA ) (and later, UNITA ) to prevent the People's Movement for the Liberation of Angola (MPLA), which was supported and augmented by Cuba , from coming to power. China and Safari Club sent assistance to support the Mobutu regime during the Shaba I conflict in 1977. The Somali Democratic Republic established good relations with the Soviet Union throughout

969-659: The Southern African Development Community (SADC) have a long-standing relationship and China provides the SADC with an annual $ 100,000 grant to help fund its Secretariat. Early modern bilateral relations were mainly affected by the Cold War and communist ideology. Following the Mao era and continuing as of at least 2023, China seeks relationships with African governments and political parties on

1026-591: The land of Po-pa-li ( Berbera ). In 1071, an embassy arrived in China from an unidentified East African kingdom. Since it was a formal tribute mission (in the eyes of the Chinese), it is described in the official History of the Song Dynasty . The name of the kingdom was Ts'eng t'an and it was said to lie inland and mint its coin. This name is probably derived from the Persian Zangistan , and

1083-536: The "First Intermediate Zone," in which China's status as a non-white power might enable it to compete with and supersede both United States and Soviet Union influence. China works hard to cultivate favorable votes from African countries at the United Nations . It has often been successful, and the voting pattern of the Africa countries which rotate on the Security Council and African members of

1140-571: The 1990s, and China is currently Africa's largest trading partner. In 2000, the Forum on China–Africa Cooperation (FOCAC) was established as a forum between African countries and China. The China Africa Research Initiative estimated that there were over 88,371 Chinese workers in Africa in 2022, down from a high of 263,696 in 2015. China and Africa have a history of trade relations, sometimes through third parties, dating back as far as 202 BC and 220 AD. Ptolemy , writing in Roman Egypt in

1197-580: The African continent, mainly from Angola . Investments of Chinese companies in the energy sector reached US$ 78.1 billion in 2019. In some cases, as in Nigeria and Angola, oil and gas exploration and production deals crossed $ 2 billion. In agriculture, Benin and the Sahel countries of Burkina Faso and Mali supply up to 20% of China's cotton needs. While Côte d'Ivoire supplies China with cocoa , from US$ 39.7 million in 2001 to $ 113.5 million in 2005,

SECTION 20

#1732772840122

1254-544: The African continent. The stated aim of China's effort was to support factories manufacturing goods for export. Along with roads and ports, Nigerian President Muhammadu Buhari showed his desire to finish stalled railway projects along the coastline, specifically a 1,400 km railway from Lagos to Calabar representing approximately 200,000 jobs. A 2020 report synthesizing close to a hundred studies on Africa–China economic relations finds that economic engagement with China supported Africa's economic transformation . At

1311-630: The CAD Fund provides support in the form of grants, loans, and subsidies. The CAD Fund has completed over 60 projects, but also acts as a resource to organize the independent investments of Chinese firms. Sometimes these projects have very few funds directly from the US$ 10 billion allocated for the CAD Fund, but benefit from the CAD Fund's logistical experience and monitoring in order for investments to flow with greater efficiency. The CAD Fund in Ethiopia targets agricultural and rural development. In 2009, in

1368-726: The CAD fund to $ 10 billion. The investment mechanism of the China-Africa Development Fund operates primarily through the following processes: adhering to the principle of marketization, the Fund independently selects investment projects based on the investment policy set by the board of directors; It autonomously decides whether to invest and determines the scale of investment in line with the relevant investment decision protocols, aiming for long-term returns. Investments are allocated based on project merit rather than by country;

1425-482: The China-Africa Development Fund, including exemptions from corporate income tax on earnings generated from investments in Africa. As of 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. The fund primarily focused on industrial development. For example, in 2010 it teamed up with several partners by contributing 382.5 million ZAR into

1482-434: The Chinese sailors had named. A local guide, who claimed to be of Chinese descent, showed Viviano a graveyard made out of coral on the island, indicating that they were graves of Chinese sailors, which the author described as "virtually identical", to Chinese Ming dynasty tombs, complete with "half-moon domes" and "terraced entries". Archaeologists have discovered glass beads and porcelain from China inside Great Zimbabwe ,

1539-799: The Cold War era. When Somalia sought to create a Greater Somalia , it declared war on Ethiopia and took the Ogaden region in three months with Soviet aid. When the Soviet Union shifted its support from Somalia to Ethiopia, the latter retook the Ogaden. This angered Somalian President, Siad Barre , who expelled all Soviets advisors and citizens from Somalia. China and Safari Club supported Somalia diplomatically and with token military aid. The Forum on China-Africa Cooperation (FOCAC), first officially held in Beijing in 2006, following two major ministerial conferences in Beijing and Addis Ababa in 2000 and 2003,

1596-807: The Jidong Development Group which invested roughly US$ 52 million towards the creation of a cement plant. The CAD fund also directly invested several million USD towards several renewable energy projects. The Fund has also worked to establish and promote the Coega Industrial Development Zone in Port Elizabeth to stimulate further independent investments and job creation. The bulk of the CAD Fund's investments in Zambia are centered around cotton cultivation projects as well as copper mining projects. In 2007,

1653-455: The Liberian government opened an open-pit iron ore mine in southwestern Bong County for public bidding. The contract was eventually awarded to China-Union (Hong Kong) Mining Company Limited. However, due to a lack of follow-up operations, the company invited the China-Africa Development Fund (CADF) to participate in the project, selling an 85% stake to the Fund. In 2010, CADF subsequently sold

1710-478: The UNHRC had a significant impact in narrowly defeating a proposal in October 2022 by that body to debate human rights in Xinjiang. Somalia was the only African UNHRC member voting in favor of debate. Several African countries expressed support for the Chinese government during the 2019–2020 Hong Kong protests . In October 2019, Uganda's Ministry of Foreign Affairs issued a statement that Uganda "firmly supports

1767-517: The United States, and continues to be by far its largest trading partner as of 2022. As of 2024 , Africa makes up less than 5% of China's global trade. During the year 2011, trade between Africa and China increased 33% from the previous year to US$ 166 billion. This included Chinese imports from Africa equaling US$ 93 billion, consisting largely of mineral ores, petroleum, and agricultural products, and Chinese exports to Africa totaling US$ 93 billion, consisting largely of manufactured goods. Trade between

China-Africa Development Fund - Misplaced Pages Continue

1824-527: The administrative officer of the local Swahili history museum claimed were of Chinese origin, specifically from Zheng He's voyage to East Africa. The eyes of the Pate people resembled Chinese, and Famao and Wei were among the names, which were speculated to be of Chinese origin. Their ancestors were said to have been indigenous women who intermarried with Chinese Ming sailors when they were shipwrecked. Two places on Pate were called "Old Shanga", and "New Shanga", which

1881-1019: The basis of political and security reliability, rather than with regard to ideological ties. China originally had close ties with the anti-apartheid and liberation movement , African National Congress (ANC), in South Africa , but as China's relations with the Soviet Union deteriorated and the ANC moved closer to the Soviet Union, China shifted away from the ANC towards the Pan-Africanist Congress . The Soviets supported Joshua Nkomo 's Zimbabwe African People's Union , and supplied them with arms; Robert Mugabe 's attempts to gain Soviet support for his Zimbabwe African National Union were rebuffed, leading him to enter into relations with China. China adopted several principles, among them

1938-758: The coast of Somalia and followed the coast down to the Mozambique Channel . The goal of those expeditions was to spread Chinese culture and display Chinese strength. Zheng brought gifts and granted titles from the Ming emperor to local rulers. In October 1415, Zheng He reached the eastern coast of Africa and sent the first of two giraffes as gifts to the Chinese Yongle Emperor. Other accounts mention Chinese ships sinking near Lamu Island in Kenya in 1415. Survivors are said to have settled on

1995-585: The commissioner of foreign trade at Quanzhou in the Fujian province of China, completed his Chu-fan-chih ( Description of Barbarous Peoples ) which discusses Zanzibar ( Ts'ong-pa ) and Somalia ( Pi-P'a-Lo ). Giraffes, zebras, and incense were exported to the Ming dynasty of China, making Somalis merchants leaders in the commerce between Asia and Africa while influencing the Chinese language in Somalia in

2052-613: The era of Mao Zedong , following the victory of the Chinese Communist Party (CCP) in the Chinese Civil War . At the turn of the 21st century, the modern state of the People's Republic of China (PRC) built increasingly strong economic ties with Africa . In 2013, it was estimated that one million Chinese citizens were residing in Africa. Additionally, Howard French estimated that two million Africans were working in China in 2017. In 1971, China received

2109-616: The island and married local women. Archaeologists have found Chinese porcelains made during the Tang dynasty (618–907) in Kenyan villages; however, these were believed to have been brought over by Zheng He during his fifteenth-century ocean voyages. On Lamu Island off the Kenyan coast, local oral tradition maintains that twenty shipwrecked Chinese sailors, possibly part of Zheng's fleet, washed up on shore there hundreds of years ago. Given permission to settle by local tribes after having killed

2166-582: The local population. The Cad Fund's main investment in Ghana are power plant construction and developments. Most notable is the Asogli power plant in Tema . This plant is the first private owned electricity producing plant in Ghana, using natural gas . The CAD Fund helped organize over US$ 16 million in investments towards hydro-power plants as well as several infrastructure improvements. The fund will also support

2223-626: The most significant African provider of coffee is Ethiopia. The need to protect China's increased investments in Africa has driven a shift away from China's traditional non-interference in the internal matters of other countries to new diplomatic and military initiatives to try to resolve unrest in South Sudan and Mali. During the December 2015 FOCAC meeting in Johannesburg, South Africa, China's paramount leader Xi Jinping pledged $ 60 billion over three years in loans and assistance to

2280-793: The one country, two systems policy of the People's Republic of China on the matter of Hong Kong and other areas" and that "Hong Kong's affairs are China's domestic affairs." Also in October 2019, Tanzania's chief government spokesperson stated that the country supports China's one country, two systems policy, that the Hong Kong government was taking the best approach to the situation, and that other countries should support China. In January 2020, Namibia's land reform minister stated that Namibia fully supports Chinese territorial integrity and sovereignty, including with respect to Hong Kong. In June 2020, 53 countries, mostly in Africa, declared their support for

2337-685: The organization of several Chinese firms with the construction of a large port in Lamu as a part of the Lamu Port Southern Sudan-Ethiopia Transport Corridor project ( LAPSSET ). The CAD Fund opened an office in Johannesburg which brought investments in the mining sector by Chinese companies as well as venture projects with South African companies. The largest single investment by the CAD Fund in South Africa occurred in 2010 through their support of

China-Africa Development Fund - Misplaced Pages Continue

2394-428: The primary recipients of support are Chinese enterprises engaged in economic and trade activities in Africa or projects funded by these enterprises; targeted sectors include those crucial to the economic recovery and development of African countries, such as agriculture, manufacturing, and infrastructure that directly impacts people's livelihoods. The Chinese government has also implemented several preferential policies for

2451-423: The process. In the 14th century, Moroccan traveler and scholar, Ibn Battuta , made a long journey to Africa and Asia. He reached China in April 1345 after a stay in India before serving as an envoy of Sultan Muhammad Tughlaq of the Indian Tughlaq dynasty to China. He wrote: China is the safest, best regulated of countries for a traveler. A man may go by himself on a nine-month journey, carrying with him

2508-471: The regions also increased further by over 22% year-over-year to US$ 80.5 billion in the first five months of the year 2012. Imports from Africa were up 25.5% to $ 49.6 billion during these first five months of 2012 and exports of Chinese-made products, such as machinery, electrical and consumer goods and clothing/footwear increased 17.5% to reach $ 30.9 billion. Findings from 2017 estimate there are in excess of 10,000 Chinese corporations doing business in Africa,

2565-453: The same time, criticism against China has been growing from labour unions and civil society groups about the "poor labor conditions, unsustainable environmental practices, and job displacement" caused by Chinese enterprises. According to RAND , China is also thought to be taking advantage of African governments' weaknesses, thereby encouraging corruption and wasteful decision-making. Lamu Too Many Requests If you report this error to

2622-520: The seat of the ROC on Taiwan. Many African countries, such as Algeria, Egypt, Ethiopia, and Zambia have stressed their support for a "one-China policy". Only one African country, Eswatini , still maintains relations with Taipei . African countries have generally defended China's treatment of its Muslim minorities. In July 2019, UN ambassadors of 37 countries, including Algeria, Angola, Cameroon, Congo, DRC , Egypt, Eritrea, Nigeria, Somalia, South Sudan, Sudan, Zimbabwe, and other African states, signed

2679-426: The second century, knew of China by two separate routes: the Silk Road and the Indian Ocean trade . He identified two Chinese peoples: the Seres or silk people and the Sinai of the southern trade, whose name probably derives from the Qin dynasty . The first mention of Africa in Chinese sources was in the Yu-yang-tsa-tsu by Tuan Ch'eng-shih (died 863), a compendium of general knowledge where he wrote about

2736-488: The second-largest trading partner of Africa after the United States , which had US$ 91 billion in trade with African nations. The PRC also passed its traditional African economic partner and former colonial power , France , which had trade worth US$ 47 billion. In 2010, trade between Africa and China was valued at US$ 114 billion and US$ 166.3 billion in 2011. By 2022, total trade grew to US$ 282 billion. China has been Africa's largest trading partner since 2009 when it surpassed

2793-417: The self-declared Republic of Somaliland are the only two African states to have official relations with Taiwan, although Eswatini is the only African UN member that officially recognizes the Republic of China rather than the People's Republic. There have increasingly been closer political, security and economic ties between China and African nations. Trade between China and Africa increased by 700% during

2850-405: The support from 26 African nations in the UN to take over the seat from Taiwan . Mao Zedong was grateful for the support and said, "It is our African brothers who have carried us into the UN". Today almost all African nations officially recognise the economically larger China (People's Republic of China) over Taiwan in search of economic advantage (aid, trade and FDI). As of 2024, Eswatini and

2907-424: The thirteenth century. Their physical appearance is similar to Chinese with paler skin and a Mandarin-sounding tonal language. Their name for themselves is "abandoned people", Awatwa in their language. The establishment of modern Sino-African relations began in the late 1950s, when China signed bilateral trade agreements with Algeria , Egypt , Guinea , South Africa , and Sudan . Chinese Premier Zhou Enlai made

SECTION 50

#1732772840122

2964-442: The title of its ruler, a-mei-lo a-mei-lan is probably derived from the Persian amir-i-amiran (emir of emirs). Archaeological excavations at Mogadishu in the Ajuran Empire and Kilwa , Tanzania have recovered many coins from China. The majority of the Chinese coins date back to the Song dynasty , although the Ming dynasty and Qing dynasty are also represented, according to Richard Pankhurst . In 1226, Chao Jukua ,

3021-422: The value of which amounts to more than $ 2 trillion. The majority of these companies are private multinational corporations investing in China's infrastructure, energy, and banking sectors. Investments from Chinese entrepreneurial migration have culminated in positive (indirect jobs) and negative (displacing local traders) effects in local African societies. In 2008, one-third of China's oil supplies came from

3078-437: The year has been to an African country. In its relations with African countries, China has shown a willingness to grant diplomatic audiences at the highest levels to even delegations from the smaller African countries. The question of Taiwan has been a key political issue for the People's Republic of China (PRC). In 1971, the support of African nations was crucial in the PRC's joining the United Nations (UN), taking over

3135-481: Was jointly established with the support of the six ruling parties of Tanzania, South Africa, Mozambique, Angola, Namibia, and Zimbabwe. China's economic interests in Africa have dramatically increased since the 1990s. In 1980, the total Sino-African trade volume amounted to US$ 1 billion. In 1999, it was US$ 6.5 billion and US$ 10 billion in 2000. By 2005, the total Sino-African trade volume had reached US$ 39.7 billion before jumping to US$ 55 billion in 2006, making China

3192-503: Was the financial partner in the acquisition of 20% of Independent News and Media SA , a newspaper publishing house in South Africa, for 400 million ZAR. The China Africa Development Fund provides support in connection with the overseas special economic zones that Chinese enterprises have established in Africa. Although the Chinese government generally takes a hands-off approach to the development of these zones, leaving it to Chinese enterprises to work with host countries to establish them,

3249-428: Was the support of the independence of African countries while investing in infrastructure projects. In the 1970s, the expulsion of Soviet military advisers from Egypt and Sudan was welcomed with arms supplied by China. China and Zaire (and Safari Club ) shared a common goal in Africa, namely to do everything in their power to halt Soviet gains in the area. Accordingly, both Zaire and China covertly funneled aid to

#121878