The China-Africa Development Fund ("CADFund") is a fund which was set up in 2007 with the aim of supporting Chinese companies to develop cooperation with Africa and enter the African market. It is the first fund focused specially on investing in Africa with the biggest scale among PE funds. The Chinese government officially approved the establishment of the CADFund, with first-phase funding, USD 1 billion, provided by China Development Bank, which will eventually reach USD 5 billion.
CADFund is independently operated and based on market economy principles. Under a standardized corporate governance structure, CADFund will appoint a specialized team to manage CADFund. China Development Bank ("CDB"), the shareholder, has a great wealth of experience in project review and management and is backed up with sound expert resources. Having invested in five funds and three specialized fund management companies, the bank has developed sophisticated fund management and risk control systems. CDB has accumulated profound experience vis-à-vis investing in Africa through its "Going Global" initiative. CDB, by virtue of its overall resources and advantages, will provide a high level of professional support for CADFund.
CADFund is a pioneering move in the process of mutually beneficial cooperation between China and Africa. It remedied the gap under the traditional model of free aid and loans without increasing the debt burden to African countries, through the market-oriented operation to achieve sustained and healthy self-development. CADFund, as a thruster, will take its reference from the international PE investment fund mode under the direction of economic development of African countries. It will play a role in promoting partnership, providing guidance and support to more Chinese enterprises to develop direct investment, to promote market-oriented economic development, to improve the people's livelihood for African regions by investment, fund advisory services and other means.