Chery Automobile Co., China's largest vehicle exporter, plans to expand its presence in Africa through a new joint venture with the China-Africa Development Fund.
Under the agreement signed last week, the venture, Chery Overseas Industrial Investment Co., will be 55 percent owned by Chery and 45 percent by the fund, Chery said in a statement.
The venture will have initial registered capital of 1.3 billion yuan ($203.1 million) and will fund Chery's plant construction projects in Africa. It also will act as a captive finance company to provide financing for African consumers buying Chery's vehicles.
Chery started exporting vehicles to Africa in 2003. It sold about 15,000 vehicles in Africa in 2010. It has a complete knockdown plant in Egypt.
Chery, of Wuhu in east China's Anhui province, sold about 309,000 vehicles in the first seven months of this year with exports of 88,800 units. Its export markets are developing countries.
The China-Africa Development Fund was set up in 2006 by the state-owned China Development Bank to help Chinese companies export to and invest in African countries.