£735m for CDC Group in the UK
Posted on 28 August, 2015 by Mark Chatterley, reporter
The UK's Department for International Development invests in CDC Group to help it generate jobs in Africa and South Asia though supporting businesses.
The CDC Group, the UK's Development Finance Institution, has secured an investment of £735m ($1.15bn) from the Department for International Development.
The CDC Group's aim is to support the economic growth and create jobs in Africa and South Asia. In the past year, investments from CDC Group helped businesses create 1.3 million jobs.
Diana Noble, CDC’s chief executive, said: “A job is the best route out of poverty, and we know from experience that people in developing countries have the vision and drive to build the businesses to provide these jobs.
“What is lacking is long-term, supportive investors with experience and this is where CDC can make a difference.”
The funding will be used by CDC Group to invest in job-creating sectors such as agribusiness, infrastructure, financial institutions and construction.
Greg Hands, chief secretary to the UK’s Treasury, said: “Britain is a nation that stands tall in the world. CDC’s impressive results demonstrate why it is well placed to help meet the substantial demand for capital from promising businesses in Africa and South Asia trying to reach their full potential. This is not only the right thing to do, it is also firmly in Britain’s own economic interest as it will help build future markets for British and other businesses to compete in.”
This £735m marks the first investment in CDC Group from the UK government in 20 years. The investment will take place over three years.
Separately, CDC is also investing $122m in Pakistan-based Habib Bank to help people on low incomes access financial services, such as micro-credit to start or grow a small business.
There are around three million micro, small or medium sized businesses trading in Pakistan, but only an estimated 132,000 of them have banking services.
See more from this Government Report: UK
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