China fund eyes Africa

Kigali: A Chinese private equity fund set up a year ago for ventures in Africa plans to spend about $300 million on projects in 2008, its vice-president said.

The China-Africa Development Fund (CADFund) was launched in June 2007 with an initial $1 billion provided by the China Development Bank and plans to eventually grow to $5 billion, the fund's vice-president Hu Zhirong said.

It has invested $60 million in the first glass factory in Ethiopia, a power station in Ghana and a chrome plant in Zimbabwe. It is also working with several Chinese firms to form a holding company that will manufacture construction materials in all African countries.

"The fund is very young...in our plan we are willing to invest about $300 million in Africa by the end of this year," Hu said.