CDC Group, the UK’s government-owned development finance institution, committed £186.6m ($246.28m) to six Africa-focused private equity funds and a global fund that invests in Africa and South Asia, in 2015.

CDC’s fund commitments include: £33.9m to Abraaj Africa Fund III, £33.9m to Actis Africa Real Estate Fund 3, £20.4m to Apis Growth Fund I (Africa and South Asia), £10.2m to Ascent Rift Valley Fund I, £33.9m to Capital Alliance Private Equity Fund IV, £50.9m to Pembani Remgro Infrastructure Fund I, and £3.4m to Synergy Private Equity Fund.

“When we look at fund selection we’re open to both sector-specific and generalist funds. The key is that they are funds that we believe are aligned with CDC’s aims and can achieve the impact that we seek,” CDC Spokesperson told Africa Global Funds.

“CDC aims to maintain and create new relationships with fund managers who are strongly aligned with our mission to build businesses and create jobs across Africa, especially in more challenging geographies.”

“We support strong teams with a deep knowledge of their markets and an ability to identify and add value to those businesses that can grow and create jobs over a medium-term time horizon. All our investment partners must also adhere to CDC’s Code of Responsible Investing and work towards achieving good ESG practices at the fund level as well as in their investee companies.”

Overall, according to the 2015 annual results, the organization made 27 new investment commitments totaling £712.9m, the highest level since its creation in 1948.

Commenting on returns, CDC Spokesperson said: “We recognize that CDC is a long-term business and that some years CDC’s returns will be greater than others.”

“The markets we operate in have faced a challenging year – for instance, the MSCI Emerging Markets Index which measures quoted equity performance in global emerging markets fell by 17% in 2015. Some of those countries are included in CDC’s universe such as India with an 8% fall, Nigeria 24% fall and South Africa 27%.  So it’s been a positive year for CDC.”

Of the new £712.9m of new commitments made in 2015, £288.3m was in Africa, £254.1m in South Asia and £170.5m pan-regional (for disbursement in Africa or South Asia).

Of the 27 new commitments made in 2015, 17 were direct equity or direct debt.

The new commitments covered a variety of investments in job-creating sectors in some of the world’s most challenging environments.

In Africa, they included a sustainable forestry business in Sierra Leone and Ghana that will boost timber production and job creation; an investment in a new fund focused on SMEs in Ethiopia and Uganda (Ascent Rift Valley Fund I); and a bank in Tanzania which will expand access to financial services in the country.

In addition, CDC, in partnership with the Norwegian DFI, Norfund, took direct ownership of Globeleq, the largest independent power producer in Africa.

CDC Spokesperson said that the portfolio still shows a majority of assets (65%) driven by investment decisions made prior to the change of CDC’s investment policy in 2012.

“The new policy, which focuses on some of the most challenging geographies in Africa and South Asia, as well as on those job-creating sectors, will bear fruit in coming years.”

The 2015 results show that 73% of CDC’s entire portfolio is in Africa and South Asia and this will grow to 100% over the next few years. 

Last year CDC received its first new money from the UK Government in 20 years - the £735m investment will allow CDC to help support companies to grown on an even greater scale.

Diana Noble, CDC’s CEO, said: “Our portfolio of investments supported 17.9 million direct and indirect jobs, of which 1.03 million were newly created jobs. And I’m delighted that the progress we’ve made was endorsed by our shareholder from whom we received the first new capital in 20 years.”

“Over the last 70 years CDC has backed many thousands of successful businesses. I am excited that this extra capital will allow us to do more and live up to our proud history,” she added.