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Project

CDC’s mobilisation of private investment

Increasingly, international consensus is that private finance is critical to filling the development financing gap and achieving the SDGs (Sustainable Development Goals). DFIs (Development Finance Institutions), such as CDC Group, have an important role in mobilising finance into emerging markets. Our study analyses where and how this is taking place.

13/12/2017

The study’s primary purpose is to better understand the determinants of mobilisation in developing contexts and provide evidence and learning to help realise the full potential of CDC’s approach to crowding in private capital.

The study seeks to answer two core questions:

  • To what extent has CDC successfully mobilised private sector investment?  Including investments made through funds, direct equity, loans and other instruments.
  • What, if any, have been the systemic impacts of CDC on the private sector investment market?

This includes CDC’s influence (if any) on investor sentiment and behaviour as well as broader indicators of activity such as macroeconomic effects.

Our study will generate a new and comprehensive evidence base on the determinants of private investment in lower- and middle-income countries, and what DFIs such as CDC could do to boost this – an area that is gaining traction in policy debates. While focused on CDC in the UK, the intention is that this work will be of wider interest, both to other DFIs and to all development actors concerned with significantly increasing the scale of private investment in the developing world.

The outputs produced will go beyond the reporting of mobilisation numbers by providing insights into how mobilisation is best achieved, CDC’s contribution, and the influence of broader systemic factors.

Image © Jash engineering. Photo Credit: CDC Group.