Chinese bank investing billions of dollars in Africa

BEIJING: China Development Bank (CDB), the country's largest policy lender, has invested at least USD 2.4 billion in African infrastructure and commercial projects besides extending loans to the tune of USD 18.9 billion, the bank's president said today.

The China-Africa Development Fund has financed mineral resources, machinery manufacturing, power generation, agricultural and infrastructure projects in more than 30 African countries, Zheng Zhijie told a China-Kenya investment forum.

The fund, a wholly-owned subsidiary of CDB and an Africa-dedicated fund, was set up in 2007.

The projects are estimated to bring at least USD 10 billion to Africa, state-run Xinhua news agency reported.

With stronger bilateral ties, Kenya has become an important partner in east Africa for China, he said.

CDB's outstanding loans to Africa have totalled USD 18.9 billion of which USD 250 million have been for infrastructure projects, the financial sector and small businesses in Kenya.

Zheng said the bank's fund has helped spread the use of digital television in Kenya.

It is possibly looking to fund hydro-power, thermal-power and development park projects, as well as opening a representative office in Kenya in the future.