BEIJING: China Development Bank (CDB), a government lender in financing key overseas investment projects, is looking for new fund contributors to its African investment fund, the bank's chief economist said on Saturday.
Wang Yuan said the China-Africa Development Fund has fully invested the initial batch of $1 billion, which was contributed solely by CDB.
"The Chinese government hopes that the fund will be expanded, and CDB is currently the sole owner of the fund. But we really hope that other institutions will join the fund for equity investments (in Africa)," Wang told reporters.
The China-Africa fund was launched in 2007 as Beijing tries to boost its presence in the poor but resource-rich continent. China has allowed the fund to expand to $5 billion.
Wang, speaking at an event sponsored by the China Europe International Business School, said China's Ministry of Commerce is playing a role in soliciting Chinese companies to contribute to the fund.
The lender actively backs Chinese investments in Africa with about $7 billion in outstanding loans.
Wang said the turmoil in North Africa highlighted sovereign risks facing the region but CDB does not have any exposure to countries like Libya.
"Sovereign risks are not like technical risks. If you make mistakes on that, you lose everything," she said.
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