In December 2014, CDC and Standard Chartered signed a risk participation agreement to support new working capital lending of up to $50million ($25 million each) to businesses in Sierra Leone in the wake of the Ebola crisis.
Economic growth in Sierra Leone slowed down as a result of the Ebola crisis. There were shortages in the supply of basic commodities and disruptions to supply chains, as well as reduced production from the mining sector.
The joint facility provided support to a number of companies in mitigating the effects of the Ebola crisis by enabling them 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.
Freetown-based manufacturer, Shankerdas, employs around 1,000 people at its three factories across the city. As Ebola hit, the company was facing the prospect of running at a loss or cutting staff, until it received a loan from our facility. The money our investment provided enabled Shankerdas to continue operating at full capacity through the crisis.
Since then, it has received a second loan, which paid for the construction of a new factory to produce bottled drinks. When it’s fully operational it will employ a further 250 people.
Environmental and social aspects
We worked closely with SCB to ensure that finance provided by the facility met international environmental and social standards.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, West Africa
- Sierra Leone
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.
- Financial 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
- December 2014
- End date
For direct equity investments, this is the date at which CDC exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
- April 2016
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