China-Africa Development Fund

Introduction

Liliang TENG

Chief Marketing Officer

Oct . 2012

1

Contents

• Background and Mission

• Honors and Achievements

• Investment Projects

2

Background

3

(I) Background

• 2006 Beijing Summit

-- China-Africa Cooperation Forum

• Announcement by the Chinese President - Hu Jintao: New type of China-Africa strategic partnership through equity investment

--China-Africa Development Fund of USD 5 billion

4

(II) Establishment of the Fund

Company: China-Africa Development Fund

Business: Fund investment and management

Funding: US$1 billion, Phase I, up to US$5 billion phase to phase, by China Development Bank.

Headquarter: Beijing, China

Prospect life: 50 years

-- We are the largest special purposed investment from China to Africa

5

Combined Private Equity’s commercial and market driven ordination, with mission and

consideration for supporting and partnership

Development Finance Institution -- pursuing longer term profit

Enhancing partnerships between China and Africa enterprises

Promotion of local economic development and job creation

Creating Africa’s self-development capability

(III) Mandate and strategies of combination

6

(IV) Types of Investments

Equity

investment

Fund

investment

Investment

management

and consultancy

Other

authorized

businesses

Quasi-equity

investment Investment forms

and business scope

7

Agriculture and

manufacturing industry

Target Industries Industrial park and

free economic zones

Infrastructures

and basic industries

Resource sector

TOP OF OUR

PRIORIIES

Power ,Energy , transportation

telecommunication

and urban utilities etc.

Oil gas and minerals

(V) Industrial portfolio

Diversified ,we invest all most industries at different development stages

8

(VI) Terms and conditions

We choose

projects

Investment

standards

Prospects of bilateral relationship of win-win situation

Joint venture partners –preferring experienced and

capable Chinese partner

Lower risk preference + longer term and stable return

Responsible development model with local social,

health and environmental protection commitments

Single investment size between $5--50 million,

considering phase I size of USD 1 billion

Investment term mainly between 5 to 8 years, and will

not exceed 10 years in principle.

Equity ratio <50%, normally 15-40% , we define

ourselves important minority shareholder.

Flexible and average profit premium for single project

and sector minimum requirements

9

We respect the international investment standard ,hosting customs of the country

We abide by local law, regulation and requirements

We typically do more beneficial than local requirements and other FDIs, donate

schools and equipments etc.

(VII) Investment environment and social responsibilities

10

Achievements of past 5 years

11

Committed investment more than 50 projects, and invested 30 projects with outstanding USD2 billion USD

Leveraging USD 10 billion investments from China to Africa will be generated through our leverage effort eventually

Key sectors: Agriculture, electricity, building materials, manufacturing, industrial parks and mining sector.

Established more than 300 projects pipelines for further investments

Partnerships with more than 100 Chinese enterprises, from top SOE’s and private sectors

Networks with more than 30 African governments, and other public and private firms

Honors of achievements

12

Typical investment model

Chinese

banks,

Other

Banking

facilities

Chinese Investor

African partner

Joint Venture holdings

Credit Lending

Equity Equity Equity

CADFUND

PROJECTS

Fouth representative office opened in Accra, Ghana,

Nov 11, 2011

The first representative of the CADFund was

established in Johannesburg, South Africa, on 16th

March, 2009.

Third representative office opened in Lusaka,

Zambia, Jan 10, 2011

Our presences in Africa

Second representative office opened in Addis Ababa,

Ethiopia, on 30th March,2010.

13

15

As the China Government’s Agency, enjoys full supports from all government levels, we get guidelines from Ministries .

Welcomed by most African countries and partners with wishes to fasten the economic relationships

Networking strategic partners from top Chinese industrial and investment sectors , who are ensuring our success of investment.

China Development Bank, the world largest development

institution, and sharing project intelligence and channeling

CDB credit to its projects.

Our advantages

16

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.

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.

Partnership between the investment requirements and

money resources

17

Infrastructure

Agriculture

Economic and Trade Park

Building Material Industry

Manufacturing Industry

Our projects study

18

1. Infrastructure

The Power Plant in Ghana

19

2*90mw gas fired IPP with investment of USD200m,

with 36 month construction, operation since Nov,2010

The Port Project in Nigeria

20

Stake in TICT with China Merchants, a capacity of

400,000 TEU, four berthes

21

2. Agriculture

The Cotton Processing Project in Malawi, Zabia

22

Contract 50,000 farmers for cotton planting and feeding ,with

2 processing factories of USD30m, operation since 2009

The Leather Processing in Ethiopia

23

The capacity is 15,000 goat leather per day,

operational since 2010, over 50,000 herders

benefit from the project

The Sisal Project in Tanzania

24

800 Hectors farm, 2600tons of sisal fiber a year

25

3. Free Trade Zone and

Industrial Park

The Egypt Suez Economic and Trade Park

26

1.07 sq km, 26 companies with

registered capital of $357 million

The Lekki Free Zone in Nigeria

27

30 sq km land near Lagos, for construction and

establishing commercial, trading and manufacturing

cluster development.

28

4. Building Material Industry

The Glass factory in Ethiopia

29

40,000 tons of floating glass year, first in the country.

Employed over 600 people

30

The Cement Plant in Ethiopia

500,000 tons Portland cement a year, operational since

2011

31

5. Manufacturing Industry

The Heavy-Trucks CKD in SA

32

NORINCO Motors BaoTou Bei Ben

33

The Home Appliance Plant---Air Conditioner

in Egypt

300,000 a year, employ over 400 people

34

6. Mining Sector

35

Iron and ore: Liberia West coast; Guinea Simandou

Precious metals: RSA Wesizwe platinum , GoldOne Gold

Other projects: copper, chrome, manganese

Others discussion: Uranium , coal, oil and gas

Mining Projects -- Co-investments

Thanks！

www.cadfund.com