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Liliang Teng - Keynote Address - Chinese Outbound Investments - Examining the Impact of CAD's Investments on African Mining
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Liliang Teng - Keynote Address - Chinese Outbound Investments - Examining the Impact of CAD's Investments on African Mining

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    Liliang Teng - Keynote Address - Chinese Outbound Investments - Examining the Impact of CAD's Investments on African Mining Liliang Teng - Keynote Address - Chinese Outbound Investments - Examining the Impact of CAD's Investments on African Mining Presentation Transcript

    • China-Africa Development Fund Introduction Liliang TENG Chief Marketing Officer Oct . 2012
    • Contents• Background and Mission• Honors and Achievements• Investment Projects 1
    • Background 2
    • (I) Background • 2006 Beijing Summit -- China-Africa Cooperation Forum • Announcement by the Chinese President - Hu Jintao: New type of China-Africa strategic partnership through equity investment --China-Africa Development Fund of USD 5 billion 3
    • (II) Establishment of the Fund Company: China-Africa Development Fund Business: Fund investment and management Funding: US$1 billion, Phase I, up to US$5 billion phase to phase, by China Development Bank. Headquarter: Beijing, China Prospect life: 50 years -- We are the largest special purposed investment from China to Africa 4
    • (III) Mandate and strategies of combination Combined Private Equity’s commercial and market driven ordination, with mission and consideration for supporting and partnership  Development Finance Institution -- pursuing longer term profit Enhancing partnerships between China and Africa enterprises Promotion of local economic development and job creation Creating Africa’s self-development capability 5
    • (IV) Types of Investments Equity investment Quasi-equity Fund Investment forms investment investment and business scope Investment Other management authorized and consultancy businesses 6
    • (V) Industrial portfolio  Diversified ,we invest all most industries at different development stages Agriculture and manufacturing industry TOP OF OUR PRIORIIES Resource sector Industrial park and Oil gas and minerals Target Industries free economic zones Infrastructures and basic industries Power ,Energy , transportation telecommunication and urban utilities etc. 7
    • (VI) Terms and conditions Prospects of bilateral relationship of win-win situation We choose Joint venture partners –preferring experienced and projects capable Chinese partner Lower risk preference + longer term and stable return Responsible development model with local social, health and environmental protection commitments Single investment size between $5--50 million, considering phase I size of USD 1 billion Investment term mainly between 5 to 8 years, and will Investment not exceed 10 years in principle. standards Equity ratio <50%, normally 15-40% , we define ourselves important minority shareholder. Flexible and average profit premium for single project and sector minimum requirements 8
    • (VII) Investment environment and social responsibilities We respect the international investment standard ,hosting customs of the country We abide by local law, regulation and requirements We typically do more beneficial than local requirements and other FDIs, donate schools and equipments etc. 9
    • Achievements of past 5 years 10
    •  Honors of achievements Committed investment more than 50 projects, and invested 30 projects with outstanding USD2 billion USD Leveraging USD 10 billion investments from China to Africa will be generated through our leverage effort eventually Key sectors: Agriculture, electricity, building materials, manufacturing, industrial parks and mining sector. Established more than 300 projects pipelines for further investments Partnerships with more than 100 Chinese enterprises, from top SOE’s and private sectors Networks with more than 30 African governments, and other public and private firms 11
    • Typical investment modelChinese banks, Chinese African CADFUND Investor partner OtherBanking Equity Equity Equityfacilities Credit Lending Joint Venture holdings PROJECTS 12
    •  Our presences in Africa The first representative of the CADFund was  Second representative office opened in Addis Ababa, established in Johannesburg, South Africa, on 16th Ethiopia, on 30th March,2010. March, 2009. Third representative office opened in Lusaka,  Fouth representative office opened in Accra, Ghana, Zambia, Jan 10, 2011 Nov 11, 2011 13
    • Our advantages As the China Government’s Agency, enjoys full supports from all government levels, we get guidelines from Ministries . Welcomed by most African countries and partners with wishes to fasten the economic relationships Networking strategic partners from top Chinese industrial and investment sectors , who are ensuring our success of investment. China Development Bank, the world largest development institution, and sharing project intelligence and channeling CDB credit to its projects. 15
    •  Partnership between the investment requirements and money resources 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. 16
    • Our projects study Infrastructure Manufacturing Agriculture Industry Building Economic and Material Trade Park Industry 17
    • 1. Infrastructure 18
    • The Power Plant in Ghana 2*90mw gas fired IPP with investment of USD200m, with 36 month construction, operation since Nov,2010 19
    • The Port Project in Nigeria Stake in TICT with China Merchants, a capacity of 400,000 TEU, four berthes 20
    • 2. Agriculture 21
    • The Cotton Processing Project in Malawi, Zabia Contract 50,000 farmers for cotton planting and feeding ,with 2 processing factories of USD30m, operation since 2009 22
    • The Leather Processing in Ethiopia The capacity is 15,000 goat leather per day, operational since 2010, over 50,000 herders benefit from the project 23
    • The Sisal Project in Tanzania800 Hectors farm, 2600tons of sisal fiber a year 24
    • 3. Free Trade Zone and Industrial Park 25
    • The Egypt Suez Economic and Trade Park 1.07 sq km, 26 companies with registered capital of $357 million 26
    • The Lekki Free Zone in Nigeria 30 sq km land near Lagos, for construction and establishing commercial, trading and manufacturing cluster development. 27
    • 4. Building Material Industry 28
    • The Glass factory in Ethiopia 40,000 tons of floating glass year, first in the country. Employed over 600 people 29
    • The Cement Plant in Ethiopia 500,000 tons Portland cement a year, operational since 2011 30
    • 5. Manufacturing Industry 31
    • The Heavy-Trucks CKD in SA  NORINCO Motors  BaoTou Bei Ben 32
    • The Home Appliance Plant---Air Conditionerin Egypt 300,000 a year, employ over 400 people 33
    • 6. Mining Sector 34
    • Mining Projects -- Co-investments Iron and ore: Liberia West coast; Guinea Simandou Precious metals: RSA Wesizwe platinum , GoldOne Gold Other projects: copper, chrome, manganese Others discussion: Uranium , coal, oil and gas 35
    • Thanks!www.cadfund.com