Robert B. Zoellick, the president of the World Bank, has spent half of his time during his latest trip to China in persuading local companies including the country's sovereign fund to invest in Africa.

He said an asset management operation under the bank's private sector investment arm, the International Finance Corporation (IFC), would probably complete its first private equity fund this autumn.

During his trip to Beijing, Zoellick met with managers from China's sovereign fund, the China Investment Corp (CIC), on possible investment in the fund.

"We have also received interest from another East Asian country, some Gulf countries, and a pension fund in the region," said Zoellick in an exclusive interview with China Daily.

"They have recognized from the financial crisis that developed markets could be risky too. But there are still good long term returns in the developing counties."

Zoellick wants to replicate the Chinese experience in other developing countries. [China Daily]

The World Bank president cited the sound investment record of IFC in the past decades to persuade sovereign and pension funds that there are good opportunities in developing countries, such as Africa.

"The rate of return of IFC's private sector projects has been 20 percent over the past 25 years. It is a pretty good return," he said.

Zoellick said the World Bank is seeking several approaches to cooperate with CIC. For instance, the sovereign fund could invest in infrastructure, debt restructuring, equity investment as well as healthcare and financial sectors in Africa, Zoellick said.

He pointed out that through the World Bank network in over a hundred countries, CIC would have better access to local markets.

"No matter it be the CIC, Deutsche pension fund, or Gulf sovereign funds. Most of them are unaware on where to invest due to lack of information, transaction or infrastructure. These are something that the IFC can provide. We operate in over a hundred countries and we know these markets well," he said.

The president emphasized that the cooperation is not for CIC to make contributions; rather, it is for the CIC to consider it as diversified investment.

During his meetings with Chinese leaders he constantly raised the issue of investment in other developing countries.

Even on his trip to Anhui, where he visited some World Bank agriculture and forestry projects, an energy-efficient cement plant and a science and technology university, the president said he wants to introduce the experience in China to the rest of the developing countries.

"A big area of my trip is to take China's experience and some of its business and help connect it to the rest of the world."

Zoellick said the world could no longer rely on the American consumer alone. Developing countries in places like Africa can become future regions of growth.

"For every hour that I spend discussing ways that we could help China's development, we probably also spend an hour discussing ways we can work with China in supporting development elsewhere," he said.

(China Daily September 8, 2009)