african union for housing finance conference: agriculture & real estate, china africa...
DESCRIPTION
Mr Liu Jianguo, Sr Exec Director, Agriculture & Real Estate, China Africa Development Fund. With more than 46 cities in Africa swelling to populations of a million people or more — and 17 of the world's 100 fastest-growing cities located in Africa — there is an acute need to develop housing solutions for so many urban residents. But raising the capital to meet that growing demand for housing remains a significant challenge. In 2013, the African Union for Housing Finance (AUHF) will host a conference under the theme "Raising Capital for Housing Finance.” The Africa-China Urban Initiative will organize a conference panel discussion on "Understanding (and harnessing) Chinese investment interest." Chinese investment in residential development in Africa is increasingly having an impact and demonstrating a track record of opportunity and experience. Panelists invited include Chinese investors setting out their experiences and expectations for the market and an African corporation that has received Chinese financing. http://urban-africa-china.angonet.org/content/29th-annual-conference-mobilising-capital-housing-financeTRANSCRIPT
Contents
� Introduction of
CADFund
�CADFund Real
Property Projects in
2
Property Projects in
Africa
�The Challenges and
Opportunities of
Africa Real Property
Sector
(I) Establishment of the Fund
� On Nov 4th , 2006, at the Beijing Summit of the Forum on China-Africa Cooperation, Chinese President Hu Jintao announced that China would undertake 8 measures to forge a new type of China-Africa strategic partnership, strengthening bilateral cooperation in more areas and at a higher level.
� Establishing China-Africa development fund, which will eventually reach USD 5 billion, to encourage and support Chinese enterprises to invest in Africa.
4
Chinese enterprises to invest in Africa.
(II) Basic Business Model
CDB CADFund ChineseInvestor Local
Investor
Equity Equity
Equity
5
JointVenture
Project in Africa
Credit Lending
Equity Equity
Agriculture and
manufacturing industry
Industrial parks launched Resource development
Help African countries enhance
self-development abilities
(III) Target Industries�No strict limitations on target industries. Improving the living standard of
African people and promoting the economic development of Africa
6
Target industries Industrial parks launched
by Chinese enterprises
Infrastructures
and basic industries
Resource development
Energy resources, traffic,
telecommunication
and urban infrastructures etc.
Oil gas and solid minerals etc.
� 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.
� CADFund is committed to creating a platform that
fosters win-win cooperation.
(IV) Functions of CADFund
7
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.
� More than 70 projects approved
� USD2.6 billion investment from CADFund
� About USD 14 billion FDI from China to Africa generated
� Including agriculture, electricity, building materials, manufacturing, industrial parks, mining, etc
� Up to now:
9
manufacturing, industrial parks, mining, etc
� More than 200 projects followed up by Fund
� In partnership with both Chinese and African SOE’s and private-owned companies
Representative Offices in Africa
� The first representative office established in
Johannesburg, SA, on 16th March, 2009.
� Second representative office opened in
Addis Ababa, Ethiopia, on 30th March,2010.
11
� Third representative office opened in Lusaka,
Zambia, Jan 10, 2010
� Fouth representative office opened in
Ghana, Nov 11, 2011
Real Property Projects in Africa
• Henan Guoji Group Partners with Zambia Development
Authority(ZDA)
• 33hectere ,450 units,
• SLIVEREST Garden, with shopping center, school , health
center, etc花园
14
Real Property Projects in Africa
• Mozambique affordable house project
• Partnering with Fund for House(FFH),Mozambique;
• Total investment US$880m,first phaze 319 hecter,10,000units,
• With School ,shopping center,hospital ,ect.
• Start ed in Jan,2012
15
� Challenges &Potentials
�High construction costs, building materials;
� Short of construction machines and staff;
�Formal house, USD500/m2�1Const
ruction costs
�2Finan
cial Support
�Short of Financial Suppor
�ratio of Mortgage to GDP less than 5% in majority of Africa countries, USA 26%,Hongkong40%,China 15%,EU Countries,39%;
� Challenges &Potentials
�3high
barrier
�High developent barrier…long time for land register and transfer;�Lack big block land
� Challenges &Potentials
The way to go forward
53
� Co-finance
� PPP model and Equity investment
� Combination of CADFund Equity, Africa government incentive policies and Commercial loans from China commercial BanksB