The Private Sector
CDC – promoting the private sector in the developing world
CDC Group plc is wholly owned by DFID, and is part of DFID's portfolio of
interventions in private sector development. It was formerly known as the
Commonwealth Development Corporation but was transformed into a public limited
company by Act of Parliament in 1999.
CDC’s purpose is "to maximise the creation and growth of viable
businesses in poorer developing countries, through responsible investment and
mobilising private finance". Its Investment Policy requires it to make 70
percent of new investments in poorer developing countries (ie with an annual GNI
per capita below $1,750), and 50 percent in sub-Saharan Africa or South Asia. It
is also required to follow best practice in corporate governance and business
ethics, as set out in its Business Principles.
From 2004, CDC’s investments have been principally contracted out to a fund management
company that was de-merged from CDC. Known as Actis, it is a LLP (limited
liability partnership) between its management and staff and the Government.
Actis now maintains the overseas staff and offices formerly belonging to CDC. It
is mainly active in the power sector, financial institutions, telecommunications
media and technology, agribusiness, infrastructure, minerals oil and gas,
consumer goods, and healthcare.
In order to deepen the reach of its capital, CDC is actively looking for
other fund managers who specialise in emerging markets. CDC places capital not
only with Actis and Aureos Capital but also with other fund managers focusing on
emerging markets including
 Navis
(South East Asia and India),
Ethos
Private Equity,
Sphere
Holdings,
Horizon Private Equity,
African Capital Alliance
(all with an African focus),
Grofin
(specialising in often neglected early stage and start up companies) and
Cordiant
(co-managers of the CIFA fund, established by the Canadian Government, which
invests in risk capital for pan African private equity investments). CDC capital
is also placed with
ShoreCap
which specialises in small banks and microfinance, and
African
Lion (mining).
CDC’s investments in:-
a) the small/medium enterprise (SME) sector are managed by
Aureos Capital, a
joint venture between Actis and Norfund, the Norwegian counterpart of CDC.
b) the power sector are managed by a CDC subsidiary Globeleq,
a power utility and operating company focused on the emerging markets of Africa,
the Americas and Asia.
Last Updated 1 February 2006
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