China Africa Development Fund Not Attractive Enough in China
China Africa Development Fund Not Attractive Enough in China China in Africa: The Real Story China Africa Development Fund, the equity investment arm established by China Development Bank and launched at the 2006 Beijing Summit of the Forum on China Africa Cooperation, has failed in its effort to raise $2 billion on the capital markets. Instead, says a story published by China's vigorous economics newspaper Caixin , the state will arrange a second injection of foreign exchange: "The fund's parent, China Development Bank (CDB), arranged the US$ 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." Chinese private funds and investors were not tempted by the potentially high returns on offer in Africa. And they were put off by the CADF's mission of holding shares for at least five years and potentially longer, t...