The story of China in Africa is not over yet. China is not letting on her hold of Africa. The country has just announced an infrastructure development fund for the continent.
The Chinese government announced at the second Invest in Africa Forum a $500 million initial capitalization, with the creation of the China Overseas Infrastructure Development and Investment Corporation Limited (COIDIC).
According to a press release copied to ghanabusinessnews.com, the COIDIC is a for-profit company that invests in and manages projects from concept to feasibility studies, financial close and commercial operations.
“Its founding shareholders include: China Development Bank’s China-Africa Development Fund (CADFund); China Gezhouba Group Overseas Investments Co. Ltd; China Telecom Global Limited; Changjiang Survey, Planning, Design and Research Co., Ltd (CISPDR); China ENFI Engineering Corporation; and HCIG Energy Investment Co., Ltd. In 2017 COIDIC expects to add more shareholders,” it said.
The release noted that, CADFund is Africa’s largest project sponsor, and over the past nine years it has invested equity in 87 projects in 36 Africa countries with total capitalization (debt plus equity) of over $30 billion.
Africa has infrastructure needs – from need for electricity, roads, housing and schools.
The continent requires an estimated $90 billion every year to bridge the infrastructure gap.
A report by PwC issued in May 2015 predicts an estimated infrastructure spend in the Africa to reach $180 billion per annum by 2025, up from $70 billion in 2014.
By Emmanuel K. Dogbevi
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