In 2016, CDC and Standard Chartered signed a risk participation agreement to support new working capital lending of up to $30 million to businesses in Sierra Leone.
This followed a 2015 risk participation agreement where both organisations had agreed to provide working capital lending of up to $50 million ($25 million each) to the country’s businesses to support the country’s recovery from the Ebola crisis.
In 2018, CDC closed a follow-on debt investment of $16.5 million through the facility.
Economic growth in Sierra Leone slowed as a result of the Ebola crisis. The epidemic led to shortages in the supply of basic commodities and disruptions to supply chains, as well as reduced production from the mining sector.
We have already provided $26 million of working capital financing to nine companies alongside Standard Chartered. This enabled these companies to scale up operations to supply consumer goods to affected zones. For example, in the import and distribution of key food staples such as rice, flour, cooking oil and sugar, as well as building materials and hygiene products.
We will continue to support small businesses in Sierra Leone alongside Standard Chartered by adding new businesses under the umbrella of the facility in the next few phases.
Environmental and social aspects
We worked closely with SCB to ensure that finance provided by the facility met international environmental and social standards.
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Other consumer services
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Debt
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- October 2018
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
- United Kingdom