China will launch a new fund to help companies in Cape Verde draft business proposals. The fund will also finance feasibility studies on new ventures and help put the entrepreneurs in touch with Chinese lenders, reported A Semana, a newspaper in the African country.

The fund will offer non-repayable credit to firms to cover the high administrative costs they face in planning new ventures and in complying with technical requirements required by prospective lenders.

The new fund is part of the Public Development Assistance programme signed between officials from Beijing and from Praia, Cape Verde’s capital.

“Giving financial capacities [to firms and promoters] should allow Cape Verdean companies to present feasibility studies with confidence and credibility, and these will allow them to gain access to funding made available by the China-Africa Development Fund, the China-Portuguese Speaking Countries Cooperation Development Fund, and the China Development Bank”, said Leonesa Fortes, Cape Verde’s Minister of Tourism, Investments and Business Development, as quoted by the newspaper.

The new co-operation move is a result of Ms Fortes’ recent visit to China, which took place from May 31st to June 5th. Speaking in Beijing at that time, the Minister had announced bilateral co-operation was entering “a new stage”.

It includes China’s granting of loans to help develop micro- and small-sized Cape Verdean companies, the newspaper added.