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More funds head to African shores for infrastructure

10th June 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Some $70-billion would head to African shores over the next seven years for infrastructure development as a Chinese development fund shifts its focus from mining to essential infrastructure development.

The China–Africa Development Fund (CADFund) had invested more than $3-billion in equity on 85 projects in 34 African countries, representing total investment including debt and equity of $30-billion, over the last eight years, China Overseas Infrastructure Development and Investment Corporation (Coidic) Africa manager Nicholas Mitsos said on Friday.

The Beijing-based CADFund aimed to help unlock the $100-trillion-plus savings to be found within the Organisation for Economic Cooperation and Development (OECD) member States.

The key, Mitsos noted, was to tap into these potential funds to accelerate infrastructure development on the continent.

He noted that OECD countries were unlikely to invest in or fund risky, early-stage projects; however, there would be a willingness to invest in “ready-to-go” completed viable infrastructure projects.

Coidic, which was established last year to accelerate early-stage projects struggling to head to financial close, aimed to conceive, fund, develop and establish essential infrastructure and then make way for OECD investors.

Edited by Creamer Media Reporter

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