DFID has decided to increase their capital contribution to the UK's Development Finance Institution, CDC, with an an amount similar to the full Norwegian aid budget for 2018.
The commitment to invest up to £703 million (NOK 7,3 bill) a year of new capital in CDC - over the next five years - is a part of the British government's plan to boost economic development and job creation in poor countries and address the scale of funding necessary to meet the Sustainable Development Goals.
Development finance from Western countries has evolved dramtically over the last decade. This recent decision made by the British government is another exampel of the European policymakers increased recognition of a well-functioning private sector and economic growth as preconditions for sustainable poverty alleviation.
Sustained, job-creating growth is essential to lifting people out of poverty. The clock is ticking and over the next decade a billion more young people will enter the job market, mainly in Asia and Sub-Saharan Africa. This new capital will enable CDC to make hundreds more investments, creating millions of new jobs and changing countless lives.
CDC’s Chief Executive, Nick O’Donohoe