CDC announced the 2022 to 2026 strategy

The strategy, entitled, “Productive, Sustainable and Inclusive Investment”, sets out how CDC, which is changing its name to British International Investment, will become a central part of the UK’s offer to help to develop and emerging countries meet their significant financing needs for infrastructure and enterprise.

The strategy sets out three strategic objectives that respond to the opportunities and challenges CDC sees in the countries they serve.

The organization will invest to achieve:

• Productive development – by raising the productivity of an economy so that it can support a decent standard of living for all;
• Sustainable development – helping transform the economy to reduce emissions, protect the environment and adapt to the changing climate; and
• Inclusive development – sharing the benefits of higher productivity and greater sustainability with poor and marginalized sections of society.

Entering a new five-year strategy period

CDC operates in five-year strategy periods, which are agreed and ratified by the shareholder, the Foreign Commonwealth and Development Office. The next strategy period begins on 1 January 2022 and runs until the end of 2026. CDC aims to invest £1.5 – £2 billion per annum over the period.

The new strategy builds on the mandate that has been at the heart of the work for nearly 75 years, and their successful track record over the last decade, and will permit to go even further.

It recognizes the vital importance of infrastructure in bringing large-scale impact to enable enterprise and benefit millions of people.

The new strategy also includes:

• An increased focus on climate finance, including in green infrastructure and will provide new investment in digital transformation, from large-scale digital infrastructure to early stage venture capital earlier-stage, disruptive businesses that offer radical solutions to the problems facing developing economies.
• An expanded geographical remit to include the Indo-Pacific and Caribbean. In the Indo-Pacific region, specifically in the larger economies of the Philippines, Indonesia, and the Mekong region (Vietnam, Cambodia, and Laos), the focus will be on climate investment, particularly the renewables sector.
• A commitment to building partnerships with like-minded organizations. That includes using our proximity to the City of London to mobilise commercial investors to cement the UK as a development finance hub.

The more geographically diverse approach complements the organization’s existing strong profile in Africa and South Asia. In the past five years, CDC has invested close to £7 billion and mobilised a further £2.5 billion – and in doing it has backed businesses that employ over 900,000 people and which have paid in excess of £10 billion in taxes.

Nick O’Donohoe, Chief Executive of CDC, said: “Building on CDC’s legacy, British International Investment will be a key part of the UK’s new economic partnerships to ‘Build back better. Our involvement recognizes that impact investment – capital dedicated to achieving positive economic, environmental and social change – is a vital way we can support our partners. We’re proud that we can play a central role in the UK Government’s international financing offer.”