The China-Africa Development Fund (“ CADFund”) is one of the Eight Measures which was announced by Chinese President Hu Jintao at the Beijing Summit of the Forum on China-Africa Cooperation on the November 4th , 2006. It is a fund which aims to support Chinese companies to develop the cooperation with Africa and enter the African market. On June 26th , 2007, CADFund hold the opening ceremony as the first fund which was announced to set up by Chinese President and cut the ribbon at an opening ceremony by the leaders of State Council. Also it is the first fund focused specially on investing to 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, and will eventually reach USD 5 billion.
CADFund 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. And without increasing the debt burden to African countries, through the market-oriented operation to achieve the sustained and healthy self - development. CADFund, as a thruster, will fully use for reference from the international PE investment fund mode and the direction of economic development of African countries, to play a role in promoting the partnership, to guide and support more Chinese enterprises to develop the direct investment, to promote market-oriented economic development, to improve the people's livelihood for African regions by investment and fund advisory services and other ways. CADFund is one of new methods for China-African new strategic partnership which was fully controlled promoted by our government. We had many distinctive characteristics in the capital nature, the business area, and operation mode. And continually following the investment philosophy: to build up “bridge linking” and “connection” of the economic and trade cooperation between China and Africa; to enhance the self-develop capability of Africa; to strictly fulfill the investment environment and social responsibility; to promote mutually beneficial and win-win between China and Africa by market-oriented operation .