APPENDIX C
EXAMPLES OF RECENT CDC INVESTMENTS AND THEIR ASSOCIATED IMPACT
AQUARIUS PLATINUM, SOUTH AFRICA
|
Date of first investment |
|
2001 |
|
Investment amount |
|
US$12 million |
|
Type of investment |
|
Expansion capital |
|
Type of business |
|
Platinum mining |
|
Impact |
— |
Enabling development of three smaller mines that support the ANC government's "use it or lose it" policy—ie smaller projects than the major mining companies would consider |
| |
— |
Two mines to involve partnership with a black empowerment group |
| |
— |
Foreign exchange (US$) earnings for South Africa |
| |
— |
CDC pressure succeeded in bringing about high environmental and safety practices. |
|
Employment |
|
20 and over 300 contractors |
|
|
|
|
MEDIKREDIT, SOUTH AFRICA
|
Date of investment |
|
2001 |
|
Investment amount |
|
US$7 million |
|
Type of investment |
|
Management buyout/expansion capital |
|
Type of business |
|
Healthcare administration |
|
Impact |
— |
Enabled talented local management team to take control of business from western MNCs |
| |
— |
Delivering efficient and low-cost administrative support to healthcare industry by processing claims for medicines, procedures, consultations and hospitals |
| |
— |
Data-mining improves understanding of local epidemiology, leading to improved disease management and clinical outcomes |
| |
— |
Potential for roll-out to other African countries |
|
Employment |
|
200 |
MEDSCHEME, SOUTH AFRICA
|
Date of first investment |
|
2001 |
|
Investment amount |
|
US$7.8 million |
|
Type of investment |
|
Replacement capital |
|
Type of business |
|
Healthcare administrator |
|
Impact |
— |
Enables companies to better manage employee health schemes |
| |
— |
Provides services to large public sector clients employing lower income workers and covering families; one client accounts for 300,000 lives insured |
| |
— |
Investment in consortium with a black empowerment company |
| |
— |
Large local employment base |
|
Employment |
|
3,500 |
|
|
|
|
MSI CELLULAR, PAN AFRICA
|
Dates of investments |
|
1998, 2000, 2001 |
|
Investment amount |
|
US$64.5 million |
|
Type of investment |
|
Start-up, then follow-up investment |
|
Type of business |
|
Pan-regional cellular telephony operator |
|
Impact |
— |
Creation of vital communication network for businesses and individuals; reliable alternative to ineffective fixed line infrastructure |
| |
— |
CDC mobilised third party investors |
| |
— |
Contributes to Millennium Development target of telephone lines per 1000 people |
| |
— |
Supported local licence bids |
|
Employment |
|
10 (1998) to 1,224 |
|
|
|
|
NORTHPOLE, CHINA
|
Date of investment |
|
2001 |
|
Investment amount |
|
US$20.5 million |
|
Type of investment |
|
Replacement capital |
|
Type of business |
|
Tent/outdoor furniture manufacturer |
|
Impact |
— |
Export business with large employment base |
| |
— |
Supports sub-contractor factories in Bangladesh and Sri Lanka |
| |
— |
CDC has persuaded management to implement consultative workplace structures, which allow employees a regular forum to raise any concerns |
|
Employment |
|
4,500 |
PRAXIS ACTIVE EQUITY FUND II
|
Date of first investment |
|
2001 |
|
Investment amount |
|
US$8 million |
|
Type of investment |
|
Fund start-up |
|
Type of business |
|
Healthcare fund |
|
Impact |
— |
Invests smaller sums than CDC usually does, down to US$1.5m |
| |
— |
The Fund's management team, which includes a qualified medical practitioner, have an active and proven approach to creating small, sustainable South African healthcare businesses |
| |
— |
A key investment is Prime Cure Clinics, which provides affordable primary healthcare to blue collar workers in rural areas and around townships, through a network of 50 clinics |
|
Employment |
|
10 |
|
|
|
|
REGAL FOREST HOLDINGS, CENTRAL AMERICA
|
Date of first investment |
|
2000 |
|
Investment amount |
|
US$15.7 million |
|
Type of investment |
|
Rescue |
|
Type of business |
|
Household goods retailer |
|
Impact |
— |
Sells household goods at affordable prices—such as fridges, washing machines, sewing machines, TVs and kettles |
| |
— |
A major employer—operates 205 stores in both urban and rural areas |
| |
— |
CDC rescued the business from receivership, after the region had suffered from the effects of El Nino
Reacted to the El Salvador earthquake by further reducing its prices
|
|
Employment |
|
3,248 |
SONGAS, TANZANIA
|
Date of investment |
|
2001 |
|
Investment amount |
|
US$18 million |
|
Type of investment |
|
Start-up |
|
Type of business |
|
Development of inland gas pipeline to provide Tanzania with cheaper power supply |
|
Impact |
— |
Enable replacement of expensive imported fossil fuels and add to rehabilitating of chronically erratic power supply |
| |
— |
Greater development and utilisation of indigenous resource |
| |
— |
CDC was lead negotiator between private investors and Government of Tanzania |
| |
— |
CDC committed to completing the deal over a lengthy period of time |
|
Employment |
|
100 |
|
|
|
|
TSAVO POWER, KENYA
|
Date of first investment |
|
2000 |
|
Investment amount |
|
US$19 million |
|
Type of investment |
|
Start-up, alongside sponsor Wartsila |
|
Type of business |
|
Power station |
|
Impact |
— |
Reduced Kenya's dependence on the unreliable supply of hydro-electricity |
| |
— |
Added much-needed power capacity for homes and businesses, when power cuts were frequent and sometimes lengthy |
| |
— |
Investors included some commercial banks for whom this was the first project of its type in East Africa |
| |
— |
Single largest private sector investment in Kenya's history |
|
Employment |
|
100 during construction and 50 operational |
|
|
|
|
UTI BANK, INDIA
|
Date of first investment |
|
2001 |
|
Investment amount |
|
US$33 million |
|
Type of investment |
|
Expansion capital |
|
Type of business |
|
Commercial/retail banking |
|
Impact |
— |
Developed a strategy for retail banking operations which will deliver services to small businesses and individuals, many of whom have no ready to banking access today |
| |
— |
Working alongside NGOs to offer micro-lending to poor rural communities |
| |
— |
Implementing international best practice in terms of business principles/anti-money laundering |
|
Employment |
|
1,800 |
YVRAS, INTERNATIONAL
|
Date of first investment |
|
2001 |
|
Investment amount |
|
US$33 million |
|
Type of investment |
|
Expansion capital |
|
Type of business |
|
Airport operator |
|
Impact |
— |
Providing improved facilities for import, export and tourism at airports in Chile, Dominican Republic, Jamaica and Egypt |
| |
— |
Raising standard of infrastructure to international levels |
| |
— |
Helped Dominican Republic complete international US$213 million bond issue, to help finance further development |
|
Employment |
|
55 |
|
|
|
|
|
