“The fund is aimed at benefiting both China and Africa by complementing both economies, instead of regarding return on investment as the primary goal,” CDB vice governor Gao Jian, who is also president of the fund, told Caijing magazine.

“Chinese firms have faced overcapacity and upgraded their production methods in recent years, while Africa has a shortage of supply in consumer goods, with its firms at the initial stages of development,” said Gao.

The fund, launched in June this year with 1 billion U.S. dollars exclusively from the CDB to boost economic cooperation between China and Africa, will finance Chinese firms that have set up operations in Africa and provide advice for those planning to invest there.

Its investment will mainly support the development of Africa’s infrastructure, mainstay industries and sectors related to people’s livelihood - including housing, urban infrastructure, water conservancy and industrial parks.

Of the 800 Chinese firms that are currently investing in Africa, only 12.5 percent were large, state-owned enterprises and most of the others were private ones, said the report, citing figures from the Export-Import Bank of China.

The fund company had signed cooperation deals with China National Agricultural Development Group, China Machinery and Equipment Import and Export Corp. and four other firms, with the initial investment likely to be made at the end of the year, said Chi Jianxin, director of CDB’’s investment bureau.

The fund is expected to be expanded to 3 billion dollars in the second phase and eventually to 5 billion dollars with the participation of more investors.

The CDB is running 50 projects in Africa, involving 2 billion dollars, said Gao, adding that some projects, financed by bank loans, might need to receive equity investment from the fund.