PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

CDC commits USD3.5bn to poor countries since 2005

CDC Group, the UK’s development finance institution, has committed almost USD3.5bn to investments in poor countries since 2005, according to a report by the group.

CDC Group, the UK’s development finance institution, has committed almost USD3.5bn to investments in poor countries since 2005, according to a report by the group.

The report also found that alongside CDC’s commitments, other investors have committed USD21.1bn.

CDC’s capital is invested in 74 developing countries with a core focus on sub-Saharan Africa. In 2008, CDC made a record GBP436m of investments into 681 companies via 127 funds.

The employment data reported to CDC during 2008 shows that 676,000 people were employed in the 514 portfolio companies. USD2.2bn of tax revenues were generated by the 390 companies that reported tax data.

From the 12 evaluations of fund managers, 82 per cent of the portfolio companies increased turnover, 58 per cent increased profitability, and 76 per cent showed an increase in jobs, amounting to 30,000 new jobs

According to the 2008 evaluation, 86 per cent of the 96 portfolio companies investigated made improvements on environmental, social and governance practices.

Richard Laing (pictured), chief executive of CDC Group, says: ‘I have seen first hand how CDC’s capital benefits businesses, local economies and the livelihoods of people in poor countries. Last year alone, CDC’s investment provided at least 30,000 new jobs and we estimate that CDC’s 681 portfolio companies are directly supporting over three million people – a major contribution to long-term, sustainable development.
 
‘CDC’s fund managers are helping companies build value by improving labour and working conditions and corporate governance. CDC and the fund managers that invest our capital have helped companies across Africa introduce HIV/ AIDS programmes for their employees, improve environmental safeguards and health and safety standards, enforce minimum wage payments, and meet international safety standards.’

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured