The establishment of China-Africa Development Fund has been approved by the State Council, Gao Jian, vice governor of China Development Bank (CDB), said on Sunday.

CDB, as the main initiator of the fund, has drafted the plan on establishing the China-Africa Development Fund, Gao said while addressing the Development Finance and Sino-Africa Economic Cooperation Forum.

According to the draft plan, the fund will start from US$1 billion, and then add up toUS$3 billion in the second phase, until eventually amount to five billion dollars.

The business scope of the fund mainly includes equity and quasi-equity investment, fund investments, fund management, investment management and consulting services.

The fund will be used to support African countries' agriculture, manufacture, energy sector, transportation, telecommunications, urban infrastructure, resource exploration and the development of Chinese enterprises in Africa.

"The CDB attaches great importance to cooperation with Africa," Gao said. "We have sent eight working groups to Africa. This year, we plan to send another 18 working groups there."

Current loans outstanding of the CBD in Africa amounted to US$1 billion by the end of March, he said, adding the bank has been following the development of 30 projects in African countries, which involve US$3 billion.

The CDB is a development financial institution of the Chinese government. As of December 2006, the total assets of the CDB exceeded US$295 billion, with the balance of loans being US$256 billion, and the NPL ratio being 0.72 percent.

(Xinhua News Agency May 14, 2007)