China Investment Corp. (CIC), China’s $653 billion sovereign wealth fund, is shifting its focus toward infrastructure investments in emerging markets, citing less competition, a greater need for capital, and more opportunity for growth as assets in developed countries become too expensive at auction.
To mitigate the risks that are associated with infrastructure investments in developing markets, CIC executives that specialize in infrastructure, agriculture, and oil and gas investments are collaborating to create ‘package deals’.
Since agriculture and natural resources are so interconnected and dependent upon infrastructure, the package deals can unlock the combined value across sectors, especially in emerging countries, while also creating jobs and growth, while mitigating risk.
The director of the CIC has stated to the Wall Street Journal that he is ‘quite optimistic’ about South Africa in particular, including Tanzania, Kenya, and the small country of Djbouti, who’s port provides access to Ethiopia, Africa’s second most populous country.
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