Chinese media Caixin announced the merger of China-Africa Fund for Industrial Cooperation (Cafic) and China-Latin America and Caribbean Industrial Cooperation Investment Fund (Clacicif).

This operation is aimed at supporting Chinese firms investing in Latin America and Africa. The two funds will continue their respective operations without changing names but their investment decisions will be handled by the new entity created.

This entity will be established by the State Administration of Foreign Exchange (SAFE), a sovereign fund that owns most of the two funds’ equity.

The two funds do not have many employees and the market is not that big either.  “The merger has always been foreseeable”, one of SAFE’s management indicated to the media.

The SAFE currently manages three investment funds that support projects implemented by China in the framework of the Silk Road.

According to Caixan, Chinese firms invested $15.64 billion in the non-financial sector in 56 countries involved in the One Belt One Road project aimed at linking China to Europe through Africa.