Investec partners with Beijing to invest in Africa

Investec Asset Management has signed a memorandum of understanding with China-Africa Development Fund (CADFund) to invest in projects across the African continent.

The CADFund is Beijing’s main platform for facilitating Chinese investment in Africa with AuM of around $10bn.

The partnership, which involves sharing investment ideas and opportunities, aims to tap on Investec’s position as one of the largest active private sector investors across the African continent and CAD Fund’s focus on being the bridge between Chinese and African enterprises.

Through its partnership with Investec, CADFund will look to invest in projects across the Africa continent spanning opportunities across diverse sectors including agriculture, infrastructure and manufacturing, and including public-private partnerships.

John Green, deputy CEO at Investec, said this partnership is a positive and concrete example of how the private sector can collaborate in helping to drive productive investment into Africa.

“Outcomes (of the investments) include not only furthering China-Africa trade cooperation, cross border capital flow and the development of the continent’s economy, but also the creation of positive social outcomes,” said Green.

Through its partnership with Private Infrastructure Development Group (PIDG) and together with the UK Government through the Department for International Development, Investec has invested in over 60 projects with total investment of $1.2bn of capital.

Zhou Chao, vice-president of CADFund, said the new partnership highlights the “huge potential” for investments in Africa. “We are optimistic about being able to effectively identify project opportunities that are of common interest,” he added.

London-listed Investec is the first private sector company to sign such an agreement with CAD Fund in a partnership that comes only days after the Forum on China-Africa Cooperation in Beijing earlier this week, during which China’s president Xi Jinping announced a $60bn funding package to aid Africa’s development.

Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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