China National Building Material Co., Ltd announced on January 15, 2008 that it inked an investment agreement with China-Africa Development Fund (CADF) to create a joint venture with registered capital of CNY 1 billion.
Named China-Africa Building Material Investment Co., Ltd., the new company is making R&D, manufacturing and sales of a variety of building materials, including cement, in Africa. But this agreement will not take effective until the Chinese government approves.
Established on March 14, 2007, China-Africa Development Fund gained initial capital of US$1bn, invested by China Development Bank, and then the capital base was bolstered to US$5bn. Its task is to support the African countries to develop their agriculture, manufacturing, energy, communications, telecommunications, and urban infrastructure construction, as well as the development of Chinese business in Africa.
Given the business opportunities in Africa, China National Building Material believes that the cooperation with CADF will promote the cement production in Africa and benefit each other