Africa fund marks change of investment strategy

Compared with traditional financing support to the continent, which has taken the form of aid and bilateral loans, the new fund is something of a breakthrough.

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Earlier this month, Chinese Premier Li Keqiang made a trip to Africa. Li's visit concluded with the signing of a number of deals, including a pledge to increase Chinese aid to Africa by $12 billion, including $10 billion in loans.

Chinese investors piling into the continent are confronted with difficulties in obtaining financial support.

"For China, the new fund brings in local African institutions. The risk for Chinese investors will be less and investment liquidity will be improved," said Mei Xinyu, a foreign trade expert at the Chinese Academy of International Trade and Economic Cooperation, a think tank of the Ministry of Commerce.

African countries will have more opportunities in terms of investment and sharing the profits from projects.

Mei pointed out that workers in Africa often have little training, and they're less productive and efficient than Chinese workers.

"If many of them are engaged on a project, they will ... take a long time to satisfy Chinese enterprises," Mei said.

In the first 10 months of 2013, China's nonfinancial direct investment in Africa surged 71.6 percent year-on-year to $2.54 billion, according to the Ministry of Commerce.