The ChinaâÂÂAfrica Development Fund (), or CAD Fund, is a China Government Guidance Fund funded by China Development Bank. It invests in African projects across power generation, transportation infrastructure, natural resources, and manufacturing.
The fund was announced by General Secretary Hu Jintao at the November 2006 Beijing summit of the Forum on China-Africa Cooperation as one of the "Eight Measures" for Sino-African relations. It launched in June 2007 with US$1 billion from China Development Bank. A second fundraising round began in May 2010 targeting US$2 billion, and in 2015 China announced plans to expand the fund to US$10 billion.
The fund selects projects based on commercial merit rather than by country, targeting sectors critical to African development such as agriculture, manufacturing, and infrastructure. Primary recipients are Chinese enterprises operating in Africa. The Chinese government exempts the fund from corporate income tax on African investment earnings.
The fund also supports Chinese special economic zones in Africa through grants, loans, and subsidies, though the Chinese government generally leaves zone development to enterprises working directly with host countries.