In what it called “a major step for Sino-African co-operation”, the China-Africa Development Fund (CADFund) opened its first representative office in Africa in Johannesburg on Monday.

“The fund will boost economic development in Africa by encouraging investment by Chinese enterprises,” it said in a statement.

“Its creation stems from Chinese President Hu Jintao’s pledge at the China-Africa Cooperation summit in 2006,” it added.

According to Chen Yuan, chairman of the board of the China Development Bank, the fund was the first of its kind.

“It will encourage Chinese companies to invest in multiple industries, leading to an improved quality of life for residents throughout Africa,” he said.

The China-Africa Development Fund is a 5-billion-U.S. dollars fund in which the China Development Bank has invested 1 billion U.S. dollars — the fund’s first batch of capital.

Since its establishment in June 2007, the fund has facilitated over 20 investments in Africa, amounting to nearly 400 million dollars, the statement said.

Several high-level Chinese and South African government officials and business leaders attended the office opening ceremony, including Chen Yuan, CADFund CEO Chi Jianxin, and Zhong Jianhua, China’s ambassador to the Republic of South Africa.