China-Africa fund to receive new capital ahead of schedule

The China-African Development Fund is to receive a US$2 billion top up earlier than planned as Beijing looks to snap up assets left by troubled Western investors, the Financial Times reported. The fund, which was launched in late 2006, has so far invested US$400 million of the US$1 billion in starting capital granted by China Development Bank. It is expected to use up the remainder by the end of 2009 – a full two years ahead of schedule, said Chi Jianxin, the fund’s chief executive. Existing investments include agricultural projects in Ethiopia, Malawi and Mozambique; industrial zones in Egypt, Nigeria and Mauritius; and a share of a power station in Ghana. The fund has also invested in Zimbabwe, Chi said. China has been criticized for its investments in Africa, particularly those in countries with repressive regimes like Sudan and Zimbabwe.