Accord helps Shaanxi companies with expansion into Africa

The China-Africa Development Fund on Friday signed a cooperation agreement with Shaanxi government in Xi'an, the first of its kind with a provincial-level partner that aims to boost more investment in the African market.

Hu Heping, governor of Shaanxi province, said the agreement had great significance for companies in Shaanxi, pointing the way for them to go abroad and accelerate their steps into Africa.

According to the agreement, the two sides will establish Shaanxi Africa Industry Development Fund, which will help local companies in financing, project selection and loans for their businesses in Africa.

"As a province with traditional heavy industry, including energy development and manufacturing, Shaanxi has a good number of companies which have an advantage in mining, oil exploration and large-scale equipment manufacturing. All those sectors are needed in Africa," Hu said.

He said the China Development Bank, together with CAD Fund which has nine years of experience in Africa-related investment, will help companies in Shaanxi gain more information and financial aid in their business expansion in Africa.

Chi Jianxin, chairman of the fund, said there were unprecedented opportunities in China-Africa cooperation at present and the thing that Africa needed the most was capital.

The bank has already allocated $3.2 billion in the CAD Fund for more than 80 projects, from infrastructure to agriculture to energy resources in 35 African countries.

In December the bank hit its target of pooling $5 billion to go into the fund, aiming at further diversifying financial vehicles that facilitate Chinese investment in Africa.

Chen Yuan, vice-chairman of the Chinese People's Political Consultative Conference and former chairman of the bank, witnessed the signing of the agreement.

He said the international cooperation has brought opportunities for companies to invest in industrial capacity in Africa.

"China and Africa still have huge potential in future because of their complementarity," Chen said.