On
16
March
2009,
the
China-Africa
Development
Fund
(CADF)
opened
its
first
African
representative
office
located
in
the
city
of
Johannesburg.
The
opening
was
marked
by
a
signing
ceremony
of
an
MOU
between
CADF
and
the
South
African
Department
of
Trade
and
Industry
(DTI).
Little
information,
however,
was
provided
on
the
nature
of
the
MOU
signed
between
both
countries.
Only
a
general
statement
that
the
MOU
will
“increase
Chinese
investment
opportunities”
in
South
Africa
was
offered.
Chinese
officials
acknowledged
afterwards
that
more
information
should
have
been
forthcoming
on
the
MOU.
The
opening
of
the
CADF
office
in
Johannesburg,
however,
does
constitute
a
more
fundamental
engagement
with
Africa
by
Beijing.
According
to
Chen
Yuan,
Chairman
of
the
board
of
the
China
Development
Bank
(CDB),
the
new
office
will
serve
as
a
channel
to
accelerate
investment
in
both
South
Africa
and
the
Southern
African
Development
Community
(SADC)
region
and
that
funding
will
be
made
available
for
a
range
of
projects
in
Africa
intended
to
assist
in
the
continent’s
development.
An
amount
of
US$5
billion
has
been
ear-marked
for
the
fund
by
the
CDB,
of
which
US$1
billion
is
now
immediately
available.
To
date,
CADF
has
committed
US$400
million
to
Chinese
companies
new
investment
projects
in
Africa.
Chairman
Chen
Yuan
(See
Annexure
IV)
explained
that
the
fund
will
open
the
way
for
a
new
wave
of
Chinese
investment
in
Africa
to
promote
long-term
economic
development
in
Africa.
Chen
indicated
that
the
fund
will
invest
in
“multiple
industries”
to
provide
a
range
of
economic
development
options.
CADF
President
Chi
Jiaxin
(See
Annexure
IV)
explained
that
the
office
was
the
first
of
its
kind
in
Africa,
but
many
more
were
planned
for
other
parts
of
the
continent
as
a
means
to
facilitate
an
active
investment
programme.
The
CADF
will
provide
the
foundation
for
expanded
China-Africa
trade
and
investment
and
will
make
it
more
attractive
for
Chinese
investors
to
come
to
South
Africa
and
Africa
as
a
whole.
Zhong
Jianhua,
China’s
Ambassador
to
South
Africa
indicated
that
his
office
was
ready
to
facilitate
an
increase
in
Chinese
companies
visiting
the
country.
He
predicted
a
growing
interest
in
Africa
following
the
opening
of
the
CADF
office
and
assured
delegates
that
the
embassy
would
work
closely
with
the
CADF
to
advance
new
Chinese
investment
programmes.
The
ambassador
also
indicated
that
the
opening
of
the
CADF
office
followed
closely
on
the
visit
of
a
high-ranking
Chinese
business
delegation
to
South
Africa
three
weeks
earlier
led
by
senior
executives
from
the
country’s
telecom
sector,
in
search
of
new
investment
opportunities
in
South
Africa.
South
Africa’s
Deputy
Trade
and
Industry
Minister,
Elizabeth
Thabethe,
said
the
CADF
will
focus
on
collaboration
in
the
following
areas:
mining,
transport,
energy,
agriculture,
infrastructure
development
and
the
information
&
communication
technology
sector.
In
this
respect,
South
African
officials
are
looking
to
building
new
commercial
relations
with
a
range
of
Chinese
investment
companies,
backed
by
the
CADF.
Speaking
briefly
on
the
MOU
signed
between
herself
and
CADF
CEO
Chi
Jianxin,
she
said
that
it
would
provide
“financial
assistance”
to
South
African
companies
in
“distress”,
alluding
to
the
impact
that
the
global
financial
crisis
was
having
on
local
business.
Also
a
key
speaker
at
the
event,
African
National
Congress
(ANC)
Treasurer
Mathews
Phosa
commented
that
the
opening
of
the
new
CADF
office
was
indicative
of
the
trust
that
China
had
in
South
Africa’s
legal
institutions.
He
pointed
out
that
in
recent
years
China’s
growing
economic
and
political
prestige
had
resulted
in
South
Africa
turning
“east”
in
search
of
new
economic
partnerships.
Phosa
said
that
projects
financed
by
the
Chinese
to
help
emerging
entrepreneurs
in
South
Africa
would
be
supported
by
the
ANC.
Despite
the
contraction
of
the
world’s
key
economies,
Phosa
was
impressed
that
China
is
still
willing
to
make
new
investments
in
Africa
and
help
African
economies
overcome
financial
difficulties,
and
that
the
“decline”
in
Western
interest
in
Africa
is
expected
to
be
filled
by
a
new
wave
of
Chinese
investments.
He
welcomed
China’s
interest
in
Africa
and
emphasised
that
Chinese
investments
were
welcomed
by
South
Africa,
SADC
and
the
continent
as
a
whole.
Mathews
Phosa
assured
attendees
that
the
China-South
Africa
relationship
will
be
stepped-up
after
the
April
elections
–
predicting
an
escalation
of
co-operation
in
the
months
ahead
focused
on
“people
to
people”
(party
to
party)
engagement.
.
The
presence
of
Phosa
as
a
non-government
party
functionary
at
the
opening
was
somewhat
unusual.
However,
it
followed
up
an
earlier
meeting
that
was
had
between
Chen
Yuan
and
ANC
President
Jacob
Zuma,
to
discuss
improved
China/SA
collaboration.
Reliable
reports
indicate
that
China
had
made
a
substantial
donation
to
the
ANC
to
assist
the
party
in
the
funding
its
April
2009
election
campaign.
South Africa’s Deputy Trade and Industry Minister, Elizabeth Thabethe, said the CADF will focus on collaboration in the following areas: mining, transport, energy, agriculture, infrastructure development and the information & communication technology sector. In this respect, South African officials are looking to building new commercial relations with a range of Chinese investment companies, backed by the CADF. Speaking briefly on the MOU signed between herself and CADF CEO Chi Jianxin, she said that it would provide “financial assistance” to South African companies in “distress”, alluding to the impact that the global financial crisis was having on local business.Also a key speaker at the event, African National Congress (ANC) Treasurer MathewsPhosa commented that the opening of the new CADF office was indicative of the trust thatChina had in South Africa’s legal institutions. He pointed out that in recent years China’sgrowing economic and political prestige had resulted in South Africa turning “east” insearch of new economic partnerships. Phosa said that projects financed by the Chineseto help emerging entrepreneurs in South Africa would be supported by the ANC. Despitethe contraction of the world’s key economies, Phosa was impressed that China is stillwilling to make new investments in Africa and help African economies overcome financialdifficulties, and that the “decline” in Western interest in Africa is expected to be filled by anew wave of Chinese investments. He welcomed China’s interest in Africa andemphasised that Chinese investments were welcomed by South Africa, SADC and thecontinent as a whole.Mathews Phosa assured attendees that the China-South Africa relationship will bestepped-up after the April elections – predicting an escalation of co-operation in themonths ahead focused on “people to people” (party to party) engagement. .The presence of Phosa as a non-government party functionary at the opening wassomewhat unusual. However, it followed up an earlier meeting that was had betweenChen Yuan and ANC President Jacob Zuma, to discuss improved China/SA collaboration.Reliable reports indicate that China had made a substantial donation to the ANC to assistthe party in the funding its April 2009 election campaign.