CAD Fund: Opportunity for Rwandans and Chinese to forge partnerships

The Chinese government, through the Chinese Development Bank (CDB) established the Chinese Africa Development (CAD) Fund. The fund aims at encouraging Chinese companies to invest in Africa, to serve the shared interests of the governments, companies and people of China and Africa. The multi-billion fund strictly benefits partnerships between Africans and Chinese. The requirement is that: An African investor must partner with a Chinese counterpart in a feasible project to access CAD Fund. In partnership with the Chinese Embassy in Rwanda , the Private Sector Federation has developed a matchmaking facility desk at PSF offices to facilitate Rwandan companies to pattern with Chinese companies to access CAD Fund. Jean Claude Uwizeyemungu, the local investments & research manager at PSF said CAD Fund is based on the principle of Friendship, equality, mutual support and common development. Rwanda ’s Ambassador to China Hon Ambassador Ben Rugangazi assured entrepreneurs that this is a great opportunity for Rwandans to not only access the big Chinese market but also obtain capital assets and appropriate technologies at affordable prices. Liu Jin Chen, the third secretary to the Chinese Ambassador said his government will continue supporting Rwandan entrepreneurs to trade with their Chinese counterparts. Every year, Mr. Chen’s government sponsors Rwandan businessmen to participate in the famous Chinese Canton fair. He said through such international exposure the bad history (Genocide) the world associates Rwanda with, will be eventually avoided. PSF’s Uwizeyemungu explained that CAD Fund is not an aid programme and it is not allocated on a country oriented basis. Its operations require return on investment, he said, adding: CAD Fund is not a loan. With equity investment, CAD Fund will share company risks and enhance capacity without increasing their costs. Ben Rugangazi explained that CAD Fund operates independently under market rules; the funded project is responsible for its own profits, losses and risks; the fund has a standard structure of corporate governance and is managed by a professional team according to international practices. He said CAD Fund may go to either start-up or expanding companies, or invest in or purchase mature companies and big projects. Ambassador Rugangazi said companies can access between $5 to $50 million (Frw2.7 billion to Frw27 billion). Chinese Investment in Africa has since 2001 grown from $11billion to $52 billion. PSF’s Uwizeyemungu urged businessmen to start bringing their detailed profiles at PSF. Ends