Investec Asset Management has strengthened its strategic partnership with the China-Africa Development Fund (CADFund), the Chinese government’s main platform for facilitating Chinese investment in Africa with AUM of around $10bn.

John Green, Deputy CEO, Investec Asset Management, said: “We are privileged to be entering into this partnership with one of China’s most prestigious institutions. This development is a positive and concrete example of how the private sector can collaborate in helping to drive productive investment into Africa. In addition we expect to benefit from the impact of China’s Belt & Road initiative on Africa’s growth and the investment opportunities it creates.”
 
The partnership represents both a continuation and an elevation of the longstanding collaboration between Investec and CADFund, which began over a decade ago.

The partnership will be focused on sharing investment ideas and opportunities aiming to combine Investec’s position as one of the largest active private sector investors across the African continent with the CADFund’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. 

Zhou Chao, Vice President of CADFund, said: “CADFund and Investec will be able to enhance our information-sharing structure, through which we are optimistic about being able to effectively identify project opportunities.”

Outcomes 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.

According to Green, partnering between the public and private sector can operate very effectively to address Africa’s investment needs and deliver positive return outcomes for capital providers. 

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. 

“We anticipate that our partnership with the CADFund will create a similar impact for the opportunity that exists between Chinese and African enterprises for sustainable long term investment,” said Green.

John Glen, Economic Secretary to the Treasury, UK Government, added: “This partnership is yet another example of the global reach of the UK’s financial services sector, and the growing opportunities for UK and China to work together. A more prosperous, growing and trading Africa is in all of our interests, so I’m glad to see Investec and the China-Africa Development Fund setting an example by investing in the continent.”