New fund tightens Sino-Kenya relations

From right to left: Unveiling of CADFund Kenya office nameplate by Chairman Chi Jianxin, CS Treasury Henry Rotich, CS transport, infrastructure, housing and urban development James Macharia and Chinese Ambassador to Kenya Liu Xianfa. [Photo by Liu Hongjie/chinadaily.com.cn]

A China-Africa Development Fund (CADFund) representative office was officially launched in Kenya on Thursday.

The office, based in Nairobi, is the fifth in Africa after others in South Africa, Ethiopia, Zambia and Ghana. It is specially designed to cater to the East African Community (EAC).

"We are excited to establish our footprint at the heart of East Africa, here in Nairobi," said Chi Jianxin, chairman of the CADFund.

Representatives shake hands after signing the MOU. [Photo by Liu Hongjie/chinadaily.com.cn]

The EAC is a sub-regional organization where six member countries, namely Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan, enjoy some of the highest economic integration and development in Africa. In recent years, large-scale cross-border infrastructure construction has buoyed urbanization and industrialization in the region. This has further increased demand for funds as the community moves to strengthen the common market that promotes the free movement of people, products and capital.

"The establishment of the sub-regional representative office in Kenya aims to support and guide more Chinese enterprises and financial institutions to invest and set up business in the EAC region and proactively contribute to the region's integration," Chi said during the opening ceremony.

Chairman Chi Jianxin delivers a speech at the ceremony. [Photo by Liu Hongjie/chinadaily.com.cn]

Present during the ceremony were Chinese Ambassador to Kenya Liu Xianfa, Ministry of transport, infrastructure, housing and urban development Cabinet Minister James Macharia and his treasury counterpart Henry Rotich.

In his opening remarks, Liu concurred with the chairman and said: "The new office will accelerate the industrialization process of the EAC and spur China-African trade".

Macharia said the presence of the CADFund in Nairobi would supplement and complement the government's efforts to achieve its major projects. "Most importantly, the Fund's first footprint is in housing sector where we have a huge deficit. CADFund would not have come at a better time."

From right to left: Signing of MOU by representatives from CADFund, MoTIH&UD, CCECC and SPGL. [Photo by Liu Hongjie/chinadaily.com.cn]

A 2013 survey undertaken by the government revealed that the country's housing demand stood at 200,000 housing units annually over a paltry 20,000 supplied by the private sector.

Macharia said by using the Private Public Partnership initiative, the government hoped to attract Chinese investors into opportunities such as slum upgrading, social amenities, mixed use housing developments and housing for the disciplined forces and other civil servants.

China has been Africa's No. 1 trade partner for seven years in a row. In 2015, trade value between China and Africa reached $179 billion.

Photo session at the ceremony. [Photo by Liu Hongjie/chinadaily.com.cn]

To date, more than 3,100 Chinese enterprises have operations in Africa.

The CADFund signed an MOU with the Kenya Investment Authority at the event, along with a four-party agreement on Co-operation for the Development of 20,000 Housing Units with the Ministry of Transport, Infrastructure, Housing & Urban Development of Kenya, China Civil Engineering and Construction Company, and Suraya Property Group Limited.