Mr Liu Jianguo, Sr Exec Director, Agriculture & Real Estate, China Africa Development Fund. With more than 46 cities in Africa swelling to populations of a million people or more — and 17 of the world's 100 fastest-growing cities located in Africa — there is an acute need to develop housing solutions for so many urban residents. But raising the capital to meet that growing demand for housing remains a significant challenge. In 2013, the African Union for Housing Finance (AUHF) will host a conference under the theme "Raising Capital for Housing Finance.” The Africa-China Urban Initiative will organize a conference panel discussion on "Understanding (and harnessing) Chinese investment interest." Chinese investment in residential development in Africa is increasingly having an impact and demonstrating a track record of opportunity and experience. Panelists invited include Chinese investors setting out their experiences and expectations for the market and an African corporation that has received Chinese financing. http://urban-africa-china.angonet.org/content/29th-annual-conference-mobilising-capital-housing-finance

1. Real Property Investment in
Africa
China-Africa Development Fund
Sep 12th ,2013
Mauritius

2. Contents
Introduction of
CADFund
CADFund Real
Property Projects in
Africa
The Challenges and
Opportunities of
Africa Real Property
Sector
2

3. Introduction of CAD Fund
3

4. (I) Establishment of the Fund
On Nov 4th , 2006, at the Beijing Summit of
the Forum on China-Africa Cooperation,
Chinese President Hu Jintao announced
that China would undertake 8 measures to
forge a new type of China-Africa strategic
partnership, strengthening bilateral
cooperation in more areas and at a higher
level.
Establishing China-Africa development
fund, which will eventually reach USD 5
billion, to encourage and support
Chinese enterprises to invest in Africa.
4

5. (II) Basic Business Model
CDB
CADFund
Chinese
Investor
Local
Investor
Equity
Equity
Credit Lending
Joint
Venture
Project in Africa
5
Equity

6. (III) Target Industries
No strict limitations on target industries. Improving the living standard of
African people and promoting the economic development of Africa
Agriculture and
manufacturing industry
Help African countries enhance
self-development abilities
Resource development
Oil gas and solid minerals etc.
Industrial parks launched
by Chinese enterprises
Target industries
Infrastructures
and basic industries
Energy resources, traffic,
telecommunication
and urban infrastructures etc.
6

7. (IV) Functions of CADFund
CADFund is committed to creating a platform that
fosters win-win cooperation.
Providing financial support to those who have investment
opportunities but are short of capital.
Taking investment risks with those who have good financing
capacities but are not willing to bear investment risk alone.
Seeking investment opportunities for those who lack
investment experience in Africa.
Bring Chinese partners for African countries and enterprises
who are looking for foreign investors.
7

8. Performance in the past 6 years
8

9. Up to now:
More than 70 projects approved
USD2.6 billion investment from CADFund
About USD 14 billion FDI from China to Africa generated
Including agriculture, electricity, building materials,
manufacturing, industrial parks, mining, etc
More than 200 projects followed up by Fund
In partnership with both Chinese and African SOE’s and
private-owned companies
9

10. Showcase Project
10

11. Representative Offices in Africa
The first representative office established in
Johannesburg, SA, on 16th March, 2009.
Third representative office opened in Lusaka,
Zambia, Jan 10, 2010
Second representative office opened in
Addis Ababa, Ethiopia, on 30th March,2010.
Fouth representative office opened in
Ghana, Nov 11, 2011
11

12. CADFund Real Property
Projects in Africa
12

13. Real Property Projects in Africa
Sierra Leone Affordable House project

14. Real Property Projects in Africa
• Henan Guoji Group Partners with Zambia Development
Authority（ZDA）
• 33hectere ,450 units,
• SLIVEREST Garden, with shopping center, school , health
center, etc花园
14

15. Real Property Projects in Africa
•
•
•
•
•
Mozambique affordable house project
Partnering with Fund for House(FFH),Mozambique;
Total investment US$880m,first phaze 319 hecter,10,000units,
With School ,shopping center,hospital ,ect.
Start ed in Jan,2012
15

16. Real Property Projects in Africa
• Zimbabwe affordable house project
• 70 hectare
16

17. Real Property Projects in Africa
• Egypt Suez Free Trade Zone project
• 100 hectare,
17

18. Real Property Projects in Africa
• Lekki Free Trade Zone project ,Nigeria
• 3000 hectare
18

19. Other property projectsB

20. Accra, Ghana
黄金海岸，非洲率先实现
民族独立
2011年经济增速雄踞全
球

21. Accra, Ghana

22. 项目机会及团队

23. Dar-es-salaam, Tanzania
传统友好，近期热点
自然资源丰富
发现石油和天然气，未来
前景好

24. Dar-es-salaam, Tanzania

25. Luanda, Angola
石油资源丰富，中国最大
贸易伙伴
地产价格昂贵

26. Luanda, Angola

27. Luanda, Angola

28. Luanda, Angola

29. 项目机会及团队

30. Luanda, Angola

31. Luanda, Angola

32. Casablanca,Morocco
欧洲后花园
旅游资源丰富
地产发展成熟，金融支持
完善

33. Casablanca,Morocco

34. Casablanca,Morocco

35. Johannesburg ,South Africa
约翰内斯堡
市场成熟，法制健全
面向国际市场，旅游资源
丰富
金砖国家，发展潜力大

36. Johannesburg ,South Africa

37. Nairobi, Kenya
旅游资源丰富
政治稳定

38. Nairobi, Kenya

39. Nairobi, Kenya

40. Cairo,Egypt
区域影响力和号召
力
市场基础好
长期政治形势看好

41. Cairo,Egypt

42. Cairo,Egypt

43. Cairo,Egypt

44. Mauritius

45. Mauritius

46. Challenges &Potentials of
Africa Real Property
46

47. Challenges &Potentials

48. Challenges &Potentials

49. Challenges &Potentials

50. Challenges &Potentials
1
Const
ruction costs
High construction costs, building materials;
Short of construction machines and staff;
Formal house, USD500/m2

51. Challenges &Potentials
2
Finan
cial Support
Short of Financial Suppor
ratio of Mortgage to GDP less than 5% in
majority of Africa countries, USA
26%,Hongkong40%,China 15%,EU
Countries,39%;

52. Challenges &Potentials
3
high
barrier
High developent barrier…long
time for land register and transfer;
Lack big block land

53. The way to go forward
Co-finance
PPP model and Equity investment
Combination of CADFund Equity, Africa government
incentive policies and Commercial loans from China
commercial BanksB
53

54. Thanks！
！