Tuesday, May 12, 2015

Translation Tuesday: A Guangzhou Enterprise Receives a 100 million RMB Injection from CAD

By Zander Rounds

Author: N/A
Translator: Zander Rounds
Published on: 4/15/15
Source: Nanfang Daily
Original text (in Chinese)
: http://epaper.southcn.com/nfdaily/html/2015-04/15/content_7418313.htm

A recent multi-million dollar cooperative agreement between the China Africa Development Fund and Choice Investment LLC makes Choice the “first private enterprise in Guangzhou to receive support from a national foundation”, demonstrating the diverse and dynamic landscape of Chinese economic engagement with African countries.

According to a Nan Fang Daily report on the evening of April 13, the China-Africa Development Fund (CAD) and Guangdong’s Choice Investment LLC [倬亿投资有限公司] signed a strategic investment agreement. CAD plans to inject “Choice International” with 100 million RMB to prioritize the strengthening of the composition of Africa distribution channels, to optimize their operational management system and to promote the influence and competitiveness of Chinese brands in Africa. This is the first private enterprise in Guangzhou to receive support from a national foundation and a step towards the implementation of the Going Out strategy.

According to a presentation by Choice’s chairperson, Zhang Chenxiu, “Choice International” is an international brand operator specifically concentrated in Africa, the Middle East, and other emerging and developing markets. The company has developed over a period of fifteen years, during which time it has matured from a trader of general merchandise to a retailer of energy, household electric appliance and automobile goods products; from trading only with Nigeria to covering the whole continent; from exporting goods to exporting technology and management models. Today, the company has already become the operator of “TAJ” lighters, “LONTOR” LED lighting, and other consumer brand names. Furthermore, Choice maintains a high market share in Nigeria and other African countries. [According to Zhang,] at the same time as it was creating well-known brand names, “Choice International” has developed distribution channel and marketing advantages, bringing “GAC Motor,” “Gree Air conditioners,” and other domestic top-quality products to African markets.

The China-Africa Development fund announced its establishment in 2006, valued at five billion USD. It is one of China’s concrete and significant cooperative initiatives toward Africa. The objective of CAD, according to chairperson, Chi Jianxin is to deepen China-Africa economic cooperation through equity investment and through supporting and encouraging more Chinese enterprises to invest and flourish in Africa. Since it was formed, CAD relies on it’s stock holder, China Development Bank to use a comprehensive “investment + loan” financial service model to support more than eighty African programs involving over thirty African countries and covering a number of industries, including infrastructure, manufacturing, agriculture, mining and overseas industrial parks. In the realm of investment, CAD has already invested in African manufacturing industries, such as automobiles, home appliances, construction, agriculture technologies and leather processing.

[The Chairman] states that because China is a great manufacturing country, there is no shortage of production suppliers; there is, however a shorting of international brands and international distribution channels. The African market potential is great and compliments well China’s economy, making it a strategic choice for developing Chinese product brand names and distribution channels. Under the vision of “One Belt, One Road”, the 21st century’s maritime Silk Road holds great prospects for the future.

Chi Jianxin thinks that through this instance of cooperation, CAD will expand its specialized investments in Africa. By utilizing a mixed ownership system of development and diversification of equity, they can explore public and private partnerships. This will help Choice transform from a conventional trading company to a brand name distribution company, with the effect of promoting the establishment of enterprise in Africa, serving as a channel and solving the difficult problems of national industry led development. Through investment + trade, the implementation of this program will bring about the transformation of China’s domestic production capacity and serve as a guide for domestic enterprises in order to engage deeper and ultimately even realize localized investment in Africa. As such, it has great demonstration potential for achieving the type of investment that motivates trade.

About the Nanfang Daily (www.southcn.com)
The Nanfang Daily  falls under the responsibility of Guangdong Provincial Party Propaganda Department and is operated by Nan Fang Media Group. It is the Guangdong Provincial Party government agency network the official website of Nan Fang Media Group and “Southern Daily.” It was officially launched December 13, 2001.

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