This investment was made when British International Investment was named CDC Group.
We made a $15 million loan to the company, to support it to provide specialised microcredit products and capacity building services to micro-entrepreneurs, with a focus on women-owned or affiliated businesses.
Direct: CDC’s provision of a senior debt facility to Kashf will enable the microfinance institution to maintain and extend greater credit – in the form of individual loans – to its customers, namely entrepreneurs of micro-businesses, enabling them to better manage cashflow, maintain and grow their businesses. Only a relatively small proportion of loans (approximately 7 per cent) is expected to be used for personal purposes through a custom loan product used for financing consumption and/or emergency personal needs.
|Employees, individuals, households||
Pakistan (category ‘B’ country). Present in 40 per cent of Pakistan’s districts (37 per cent rural, 29 per cent semi-urban, and 34 per cent urban).
Women (100 per cent of portfolio are female and of this, 63 per cent are female-led businesses); low-income (82 per cent of portfolio lives at or below the poverty line of $2/day and average loan size is $260).
Market context: Significant addressable market (34 per cent penetration rate of addressable market and one of the lowest rates of female participation in the workforce globally). The microfinance sector in Pakistan is smaller and less developed than India and Bangladesh (active borrowers in Pakistan is one fifth and one seventh the size of Bangladesh and India respectively) but the market is experiencing increasing competition and developing quickly in maturity.
To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.
Financial: The commercial market does not offer capital in sufficient quantities to meet the company's plans / needs, and does not offer capital on the same terms.
Environmental and social aspects
We are supporting the company to develop and implement an exclusion list and procedures to incorporate an environmental, social and governance lens as part of its credit approval process. We are also supporting the company to improve its existing human resources policies and safeguarding procedures.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- South Asia
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Financial services
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Debt
- Start date
For direct investments, this is the date British International Investment committed capital to the business or project.
For funds, this is the date that British International Investment committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- December 2020
For direct investments, this is the total amount that British International Investment has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that British International Investment has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.