The aim of the fund is to stimulate investment in Africa by Chinese companies in power generation, transportation infrastructure, natural resources, manufacturing, and other sectors.

The creation of CAD Fund was announced as one of the "Eight Measures" for Sino-African relations at the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) by President Hu Jintao on November 4, 2006.

Investments are allocated based on project merit rather than by country; the primary recipients of support are Chinese enterprises engaged in economic and trade activities in Africa or projects funded by these enterprises; targeted sectors include those crucial to the economic recovery and development of African countries, such as agriculture, manufacturing, and infrastructure that directly impacts people's livelihoods.

[4] The Chinese government has also implemented several preferential policies for the China-Africa Development Fund, including exemptions from corporate income tax on earnings generated from investments in Africa.

[11] The CAD Fund has completed over 60 projects, but also acts as a resource to organize the independent investments of Chinese firms.

The Fund has also worked to establish and promote the Coega Industrial Development Zone in Port Elizabeth to stimulate further independent investments and job creation.

[17] In 2007, the Liberian government opened an open-pit iron ore mine in southwestern Bong County for public bidding.