By Alex C
The Federal Ministry of Industry, Trade and Investment (FMITI), has signed a Memorandum of Understanding with the China Africa Development Fund to facilitate investment cooperation between Nigeria and China as well as fast-track Foreign Direct Investment (FDI) inflow between the two countries.
The China-Africa Development Fund (CAD Fund) is a Chinese investment fund focusing on stimulating and facilitating Chinese investments in Africa. It is China’s largest private equity fund focusing on African investments. As the first fund in China focusing on investment in Africa, it also encourages and supports further Chinese enterprises to invest in Africa to promote the development of Sino-African commercial ties.
The Minister of Industry, Trade and Investment, Mr.Olusegun Aganga, said the CADFund, in addition to strengthening the trade and investment relationship between Nigeria and China, would also help to fast-track the inflow of Foreign Direct Investment from China into Nigeria.
Aganga said that the MoU involves the establishment of a Joint Office in Nigeria; recommending competent and willing Chinese investors for projects proposed by FMITI ; facilitating investment cooperation between Nigeria and China , among other things.
According to Aganga “The four basic ingredients that facilitate investments globally are capital, technical know-how, raw materials and market. While you can move capital and technical know-how from one part of the world to another but you can’t move raw materials and the market. Nigeria has raw materials and the market while China has the capital and know-how. This is why this synergy is important because in addition to the raw materials and the market, the opportunities for investment are here in Nigeria.
“China is the number one importer into Nigeria. It is in our best interest to have stronger and deeper relationship with China. This MOU with China we have signed today is very critical in terms of helping achieving that goal of facilitating investment between the two countries. After signing the MOU today, the next milestone is to organize a strategic investment promotion event with CAD-Fund clients in China and introduce them to the investment opportunities in Nigeria so that we can bring them to invest in the real sectors of the Nigerian economy.
Responding, Vice Governor, China Development Bank, Mr. Wang Yongsheng, said the MOU had laid a solid foundation for deepening of the current and future relationship between Nigeria and China.
He said, “As at the first quarter of 2014, our total asset was $1.3trillion, with our clients spread across about 110 countries. Our loan balance for Africa as at the first quarter of 2014, was $19.3bn. Africa is our priority and Nigeria is very critical as an area of focus. The MOU has laid a solid foundation for deepening and strengthening the relationship between Nigeria and China now and in the future.”