International Development Secretary announces launch of public consultation on the reform of CDC, the UK owned development finance institution.
The public consultation on the reform of CDC, the UK owned development finance institution, announced by the Secretary of State for International Development Andrew Mitchell, will begin today.
The consultation will enable interested parties to submit evidence based ideas, via an online survey, on which approaches CDC should focus on to maximise its development impact, and how it can best catalyse private investment.
The reformed CDC will resume direct investments and have a wider range of financial tools at its disposal, such as debt, equity and guarantees. CDC will invest in countries, regions and sectors where the private sector is reluctant to go as well as attracting new private investment by demonstrating that profitable and responsible investments can be made in difficult business environments in developing countries.
Andrew Mitchell said:
“CDC will be the jewel in the crown of the UK’s efforts to maximise the private sector’s potential to contribute to development. Reforms will allow CDC to put more investment in businesses which would never otherwise have been considered. By breathing new life into private sector led development, it will allow more people in the poorest countries an opportunity to use their own enterprise to create a path out of poverty.”
The consultation will include two half-day technical roundtable discussions and a number of studies to inform the reform of CDC.