China-Africa Development Fund

Real Property Investment in

Africa

Sep 12th ,2013

Mauritius

Contents

� Introduction of

CADFund

�CADFund Real

Property Projects in

2

Property Projects in

Africa

�The Challenges and

Opportunities of

Africa Real Property

Sector

Introduction of CAD Fund

3

(I) Establishment of the Fund

� On Nov 4th , 2006, at the Beijing Summit of the Forum on China-Africa Cooperation, Chinese President Hu Jintao announced that China would undertake 8 measures to forge a new type of China-Africa strategic partnership, strengthening bilateral cooperation in more areas and at a higher level.

� Establishing China-Africa development fund, which will eventually reach USD 5 billion, to encourage and support Chinese enterprises to invest in Africa.

4

Chinese enterprises to invest in Africa.

(II) Basic Business Model

CDB CADFund ChineseInvestor Local

Investor

Equity Equity

Equity

5

JointVenture

Project in Africa

Credit Lending

Equity Equity

Agriculture and

manufacturing industry

Industrial parks launched Resource development

Help African countries enhance

self-development abilities

(III) Target Industries�No strict limitations on target industries. Improving the living standard of

African people and promoting the economic development of Africa

6

Target industries Industrial parks launched

by Chinese enterprises

Infrastructures

and basic industries

Resource development

Energy resources, traffic,

telecommunication

and urban infrastructures etc.

Oil gas and solid minerals etc.

� Providing financial support to those who have investment

opportunities but are short of capital.

� Taking investment risks with those who have good financing

capacities but are not willing to bear investment risk alone.

� CADFund is committed to creating a platform that

fosters win-win cooperation.

(IV) Functions of CADFund

7

capacities but are not willing to bear investment risk alone.

� Seeking investment opportunities for those who lack

investment experience in Africa.

� Bring Chinese partners for African countries and enterprises

who are looking for foreign investors.

Performance in the past 6 years

8

� More than 70 projects approved

� USD2.6 billion investment from CADFund

� About USD 14 billion FDI from China to Africa generated

� Including agriculture, electricity, building materials, manufacturing, industrial parks, mining, etc

� Up to now:

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manufacturing, industrial parks, mining, etc

� More than 200 projects followed up by Fund

� In partnership with both Chinese and African SOE’s and private-owned companies

�Showcase Project

10

Representative Offices in Africa

� The first representative office established in

Johannesburg, SA, on 16th March, 2009.

� Second representative office opened in

Addis Ababa, Ethiopia, on 30th March,2010.

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� Third representative office opened in Lusaka,

Zambia, Jan 10, 2010

� Fouth representative office opened in

Ghana, Nov 11, 2011

CADFund Real Property Projects in Africa

12

Projects in Africa

Real Property Projects in Africa

�Sierra Leone Affordable House project

Real Property Projects in Africa

• Henan Guoji Group Partners with Zambia Development

Authority（ZDA）

• 33hectere ,450 units,

• SLIVEREST Garden, with shopping center, school , health

center, etc花园

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Real Property Projects in Africa

• Mozambique affordable house project

• Partnering with Fund for House(FFH),Mozambique;

• Total investment US$880m,first phaze 319 hecter,10,000units,

• With School ,shopping center,hospital ,ect.

• Start ed in Jan,2012

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Real Property Projects in Africa

• Zimbabwe affordable house project

• 70 hectare

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Real Property Projects in Africa

• Egypt Suez Free Trade Zone project

• 100 hectare,

17

Real Property Projects in Africa

• Lekki Free Trade Zone project ,Nigeria

• 3000 hectare

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Other property projectsB

� Accra, Ghana

�黄金海岸，非洲率先实现民族独立�2011年经济增速雄踞全球

� Accra, Ghana

� 项目机会及团队项目机会及团队项目机会及团队项目机会及团队

� Dar-es-salaam, Tanzania

�传统友好，近期热点�自然资源丰富�发现石油和天然气，未来前景好

� Dar-es-salaam, Tanzania

� Luanda, Angola

�石油资源丰富，中国最大贸易伙伴�地产价格昂贵

� Luanda, Angola

� Luanda, Angola

� Luanda, Angola

� 项目机会及团队项目机会及团队项目机会及团队项目机会及团队

� Luanda, Angola

� Luanda, Angola

� Casablanca,Morocco

�欧洲后花园�旅游资源丰富�地产发展成熟，金融支持完善

� Casablanca,Morocco

� Casablanca,Morocco

� Johannesburg ,South Africa

�约翰内斯堡约翰内斯堡约翰内斯堡约翰内斯堡

�市场成熟，法制健全�面向国际市场，旅游资源丰富�金砖国家，发展潜力大

� Johannesburg ,South Africa

� Nairobi, Kenya

�旅游资源丰富�政治稳定

� Nairobi, Kenya

� Nairobi, Kenya

� Cairo,Egypt

�区域影响力和号召力�市场基础好�长期政治形势看好

� Cairo,Egypt

� Cairo,Egypt

� Cairo,Egypt

� Mauritius

� Mauritius

Challenges &Potentials of Africa Real Property

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Africa Real Property

� Challenges &Potentials

� Challenges &Potentials

� Challenges &Potentials

� Challenges &Potentials

�High construction costs, building materials;

� Short of construction machines and staff;

�Formal house, USD500/m2�1Const

ruction costs

�2Finan

cial Support

�Short of Financial Suppor

�ratio of Mortgage to GDP less than 5% in majority of Africa countries, USA 26%,Hongkong40%,China 15%,EU Countries,39%;

� Challenges &Potentials

�3high

barrier

�High developent barrier…long time for land register and transfer;�Lack big block land

� Challenges &Potentials

The way to go forward

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� Co-finance

� PPP model and Equity investment

� Combination of CADFund Equity, Africa government incentive policies and Commercial loans from China commercial BanksB

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