The China-Africa Business Council and the China-Africa Development Fund have decided to set up two new funds this year boost China's investment in Africa. One fund is for commercial ventures, and the other, for mining activities.
Zheng Yuewen, chairman of CABC, which represents the interests of more than 550 Chinese companies in Africa, said each fund will raise $1 billion in its initial phase from member companies and the CADFund, China's largest private equity fund focusing on African investments, according to China's (Xinhua) News Agency.
Offices for the funds will be established in Beijing this month.
"China has been looking to invest in different ways in Africa, instead of focusing only on building infrastructure projects such as roads, bridges, ports and stadiums throughout the continent," said Zheng.
The changing global investment environment and the lingering debt crisis in the eurozone have prompted major economies such as the United States, the United Kingdom, France, India and Japan to shift their investment focus from traditional markets in Europe and Asia, to Africa.
The two new funds will provide capital to Chinese enterprises seeking investment opportunities in Africa, particularly in the mining sectors, commercial and trade investment.
To further strengthen cooperation with Africa, the Chinese government has consistently encouraged capable State-owned and private companies to invest there.
China-Africa trade stood at nearly $200 billion last year, while Chinese investment in Africa has reached $17 billion, according to the department of African affairs at China's Ministry of Foreign Affairs.