In 2016, CDC invested $25 million into the Abraaj Pakistan Fund, alongside USAID (which invested $24m) and a number of private investors. The fund reached a total size of $91m and the manager is looking to make investments of between $5 and $40 million. Our investment will provide growth capital for Pakistan’s small to medium-sized enterprises (SMEs).
Pakistan can be a difficult place to do business. Transport and infrastructure are weak, there is a severe shortage of power, and multiple administrative challenges. However, there is steady economic growth, driven by rising consumer demand from a growing middle class and retail-hungry millennials.
Our investment will enable the fund manager to tap into the potential for growth among Pakistan’s SMEs, particularly those operating in consumer-driven sectors, such as education, healthcare, utilities, (renewable energy), transport, and retail.
Abraaj will also provide strategic and managerial assistance for its investee companies, supporting local businesses to expand across the country and internationally.
Our investment will also help to attract additional commercial capital to the country.
Environmental and social aspects
The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- South Asia
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. For funds, the sectors listed here are those the fund has invested in so far.
- Infrastructure, Other consumer services
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Intermediated investment
- Fund manager:
- Abraaj Capital
- 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 2015
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.
- Cayman Islands
Investments made by this fund
|Investment name||Country||Region||Sector||Start date||Status|
|Jhimpir Power (Private) Limited||Pakistan||South Asia||Infrastructure||August 2016||Exited|
|Cinepax Limited||Pakistan||South Asia||Other consumer services||September 2017||Active|