In pursuing its partnership with middle income countries like China, IFAD has been making increasing efforts to explore the impact and benefit of South-South Cooperation by facilitating and fostering learning and sharing between China and other developing countries, especially African countries given China’s own emphasis to strengthen Sino-Africa cooperation. Since the first South-South activities in the IFAD country program started five year ago, South-South Cooperation is gaining momentum in IFAD – China partnership on which both sides are anticipating diversified and expanded approaches.
The signing of a Letter of Intent (LOI) by the Presidents of IFAD and the China African Development Fund (CADFund, www.cadfund.com ) on 22 August 2013 represents the initial result of joint efforts made by IFAD teams involving PRM and APR during the past year. Through the LOI, IFAD and CADFund will explore joint financing of sustainable agricultural development activities in Africa involving production, rural infrastructure, training of smallholders and provision of farming equipment and materials. Both sides anticipate that such joint activities will enhance synergies in promoting agricultural development and poverty reduction. 农发基金和中非发展基金在2013年8月签署了合作意向，双方同意在对非农业和农村扶贫方面探索项目联合投资，促进当地农业发展和扶贫。
The CADFund was created as part of the "Eight Measures" for Sino-African relations announced at the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) by President Hu Jintao on 4 November 2006. It was established in June 2007 with US$ 1 billion of initial funding by the State Development Bank of China and was envisioned to grow to US$5 billion in the future. By June 2012, CADFund has reportedly invested about US$ 1.6 billion in over 60 projects in 30 African countries. Among the dozen agriculture related projects, cotton production and processing in Malawi has reportedly benefited over 110,000 rural households in Malawi and the neighboring countries. Leather processing project in Ethiopia has benefited about 50,000 farmer households and enabled the country to gain stable foreign exchange earnings from leather export.
To facilitate the implementation of such joint activities, IFAD and CADFund decided to meet at least twice a year to identify projects and programs for cooperation, review joint activities implemented and exchange information and ideas. Meanwhile, it is also important and helpful that involvement of CADFund is facilitated in the IFAD country program processes, including COSOP and project design and review. Such involvement of CADFund is taking place in some countries, such as Mozambique. Within IFAD, it is conducive that IFAD CPMs/CPOs and regional divisions maintain close contacts with their peers for the China country portfolio and/or directly with CADFund to seize such opportunities of joint financing to achieve better and more results of the country programs.