We’ve published our Annual Review and Annual Accounts for 2017. Over the last year, we have continued to support the growth of businesses and create jobs in Africa and South Asia, and made 52 new investment commitments totalling £1.05bn.
We now back a total of 715 businesses in Africa and 338 in South Asia. Our portfolio in these regions directly employed nearly three-quarters of a million people (734,000), of which 63,000 were newly created jobs. Those businesses paid $3.5 billion in taxes to their local governments.
The 52 new commitments we made last year covered a broad range of investments in job-creating sectors in some of the world’s most challenging environments. They included a joint venture with the Aga Khan Foundation that aims to raise $1bn for investment in power projects in the Great Lakes region of Africa and beyond; a commitment to a high-impact fund for agricultural finance in Nigeria; a renewable energy platform serving the poorest parts of South Asia; an electronics manufacturer in Bangladesh; and a new permanent capital vehicle in Sierra Leone, the first of its kind and designed to find new ways to get capital into small economies.
The 2017 figures show a total loss after tax of £72.8 million (compared with £604.1 million profit in 2016), which represents a loss of 1.5 per cent on net assets this year (compared with 15.5 per cent profit in 2016). The average annual return on net assets since 2012 is 7 per cent. In 2017, total assets rose to £5.1 billion (2016: £4.8 billion) and CDC increased its portfolio size to £3.9 billion (£3.8 billion in 2016).
2017 saw the start of our new five-year strategy period. A new Strategic Framework set out our ambitions to transform economies, businesses and lives in Africa. Last year also saw our shareholder, the UK’s Development for International Development, announce its commitment to invest up to £3.5 billion of new capital over the next five years into CDC. This additional investment was made possible by the passing of the CDC Act, which raised the level of financial support that can be provided to us.
Other key findings from our 2017 Annual Results
Jobs: The businesses in our portfolio in Africa and South Asia employed nearly three-quarters of a million people (734,000). Of these jobs, 63,000 were newly created. Since 2014, when our reporting on jobs began, the average annual job creation rate in our investee businesses is 6.3 per cent. This compares to a growth rate of 2.2 per cent in our regions over the same period.
Where we invest: In 2017, 48% of our new commitments (£499m) went to Africa, 37% (£399m) to South Asia and 15% (£148m) were pan-regional commitments that will be allocated to either Africa or South Asia in the future.
What we invest in: In 2017, 38% of our investment commitments went into infrastructure; 26% in financial services; 3% in food and agriculture; 7% in health; 1% in education; manufacturing 1%; construction 4%; and other (21%).
The type of investments we made: In 2017, £498m (48% of the total) of our investment commitments were direct equity; £202m (19%) were debt; £273m (26%) were intermediated equity/fund investments; and £74m (7%) were guarantees.
Mobilisation of capital: In 2017, between $593m and $690m of private capital was mobilised alongside our own investments.
Access to financial services: Over 47 million customers now benefit from financial services provided by our investee companies.
Access to power: In 2017, our electricity investments generated and distributed over 46,311 gigawatt hours (GWh) of electricity.
Find out more
Read our Annual Review 2017: Forward with purpose here.
Read our Annual Accounts 2017 here.