In many developing countries there is a severe shortage of both equity and debt capital to help promising businesses grow. There is also a perception that emerging markets are riskier than they actually are, which discourages others to invest. CDC addresses these issues. In the last five years CDC has invested £1.5bn and has a further £1.7bn currently committed for future investment.
CDC does not make direct investments. Instead, we invest our capital with fund managers who have a detailed and in-depth knowledge of the local markets. Our fund managers play a role in the companies in which they invest, often helping them bring about improvements in business performance and standards.
CDC’s fund managers invest in profitable, responsibly managed private sector companies across the full spectrum of business sectors. Successful, sustainable businesses make a crucial contribution to their local economies, creating jobs, generating tax revenues and driving prosperity and sustainable economic development.
Economic development depends on investment going to businesses of all sizes and in all sectors. A broad-based economy is a pre-requisite of sustainable economic growth. CDC’s fund managers invest in agribusiness, which plays a vital role particularly in Africa, but they also invest in manufacturing and industry, financial services including microfinance, telecommunications and information technology, property and retail, consumer goods and services, as well as mining and engineering businesses.
CDC has a particular interest in SMEs and has invested US$144m in the sector since 2004.
At the end of 2008, CDC had investments in 681 companies in 74 countries. These 681 companies support the lives of an estimated 6 million people.
To learn more about the principles and objectives of CDC’s investment process Click here to see CDC's Investment Code.
