Perspectives Job creation

CDC-backed businesses in Africa and Asia create nearly 1.3 million new jobs

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    TheNewAfrica

CDC Group plc, the UK’s government-owned development finance institution, has announced its 2014 annual results. The organisation, which invests to support the growth of businesses and create jobs in developing countries in Africa and South Asia, made 19 new investment commitments totalling £296.5m and reported a total return after tax of £420.2m (2013: £117.3m). New analysis also showed that CDC-backed businesses contributed to the creation of nearly 1.3 million new direct and indirect jobs in 2014.

The new findings show that businesses in CDC’s Africa and South Asia portfolio directly employed 533,000 workers and were responsible for a further 10.8 million people when indirect employment effects, such as their supply chains, wages and increased access to power and financial services were taken into account.

2014 saw the value of the businesses in CDC’s portfolio grow, with total assets rising from £2,948m in 2013 to £3,369m in 2014. This growth allows CDC to continue to support and make new investments in new businesses.

Diana Noble, CDC’s Chief Executive said:

“CDC’s mandate is to deliver development impact in poor countries while being financially sustainable. I am hugely encouraged by our new analysis that suggests CDC’s portfolio of companies in Africa and South Asia contributed to the creation of nearly 1.3 million new direct and indirect jobs last year.

“Of course, CDC can’t take credit alone for all this job creation.  We often invest alongside others and finance is only one of the factors that drive economic success, but we know that a job is an essential way out of poverty, and getting a good job has a transformative effect on a person’s life, and that of their family and dependents.”

CDC’s 19 new investments last year (including fund commitments) covered a variety of job-creating sectors in some of the world’s most challenging places, including Bangladesh, sub-Saharan Africa and Sierra Leone.

Since 2012, CDC has evolved from providing capital solely through funds managed by third-party managers to offering a wider range of capital including the direct provision of debt and equity finance.

CDC targets a number of priority sectors, selected because of their greater capacity to create jobs. These seven sectors are agribusiness; construction; financial institutions; infrastructure; manufacturing; health and education. 85% of CDC’s new capital for Africa and South Asia in 2014 was invested in businesses in these priority sectors (2012: 53%).hg

To read the full article and view more of CDCs key figures from the 2014 results, please click here. For more information on the CDC Group plc, please visit their website.