How we measure our impact

In 2008 CDC reviewed the way we measure our impact. Our methodology is similar to the International Finance Corporation’s (IFC) framework for investments through financial intermediaries. We strive to remain in step with the latest thinking on development impact measurement and work closely with our colleagues on other development finance institutions (DFIs). CDC invests in funds with a typical 10 year life span. We measure at the mid-point and at the end of the life of the fund.

We measure against four key parameters:

•    Financial performance
•    Economic performance
•    Environment, social and governance (ESG) performance and
•    Private sector development

A six-scale rating system is applied for each parameter and a core set of over 30 indicators is used to measure performance.

We also measure CDC’s own impact by attracting other investors to developing countries and adding value to the work of our fund managers.

In 2008 12 funds were evaluated covering 119 investee companies in sub-Saharan Africa and Asia. In 2009 20 funds will be evaluated.

For a fuller perspective on CDC’s development impact and how it is measured go to Chapter 4 of our Development Impact Report.