China-Africa Development Fund (CADFund)

Background

The establishment of CADFund is one of the important measures announced by the government of the People’s Republic of China at the Beijing Summit of the Forum on China-Africa Cooperation in 2006. It is also China’s first equity fund focusing on investment in Africa, aiming at boosting Africa’s industrialization process and enhancing Africa’s sustainable development capacity through investment. CADFund was officially launched in June 2007 and undertaken by China Development Bank (CDB). With a capital amount of 10 billion US dollars, CADFund is headquartered in Beijing and has five representative offices in South Africa, Ethiopia, Zambia, Ghana and Kenya. CADFund is also entrusted with the management of the China-Portuguese Speaking Countries Cooperation and Development Fund(CPDFund), totaling 1 billion US dollars, with the aim of promoting economic and trade cooperation between China and Portuguese-speaking countries through investment.

Investment Vision:

CADFund aims to promote Africa’s economic development and industrialization, reduce poverty, improve African peoples’ livelihood, enhance Africa’s capacity for sustainable development, and build a tightly-knit "community of shared future for all mankind" through market-oriented investment.

Investment Philosophy:

Operated as an international equity investment fund, CADFund aligns itself with the principles of mutual benefit and win-win cooperation, following market rules and leveraging market instruments. With independent operation and management, CADFund assumes sole responsibility for its profits and losses, and takes on risks by itself according to market principles. CADFund strives to prevent risks through standardized and rigorous procedure of evaluation and risk control. It guides and supports Chinese enterprises in their direct investment in Africa by providing investment and consulting services in line with the economic and industrial development agenda of both China and Africa.

Investment Services CADFund adheres to the philosophy of "being true, sincere, friendly and honest" in its cooperation with Africa. In response to Africa’s needs for development, CADFund, through direct investment, addresses the local bottleneck of lack of capital and provides technologies, talents and management experience to enhance Africa’s self-development capacity and help Africa’s industrialization. Through equity and quasi-equity investments, investment fund, investment management & consulting services, and other methods, CADFund has been:

• helping Chinese enterprises to obtain the capital needed for investment in Africa and share their risks of investing in Africa;
• using the Fund’s rich knowledge about African national conditions and investment environment, it provides value-added services and helps enterprises solve problems and difficulties in investing in Africa;
• serving as a bridge, CADFund looks for sustainable projects in Africa for Chinese enterprises to invest in and Chinese partners for African enterprises and projects.