In celebration of International Women’s Day (IWD), March 8th 2016, WAM UK interviewed Diana Noble, CEO of CDC Group Plc.
What is CDC?
CDC is the UK’s development finance institution. Wholly owned by the UK Government, we invest in the private sector in Africa and South Asia – where over 80 per cent of the world’s poorest people live – to support the building of businesses and to create jobs.
We focus on investing in sectors where growth leads to jobs. These include microfinance institutions, as well as companies in agribusiness, construction, manufacturing and broader financial services. In 2014, our investments created around 1.3 million direct and indirect new jobs and livelihoods.
Why is microfinance important for women and their families?
Many of the businesses we support help empower women and this is particularly true of microfinance institutions and other financial services companies. CDC has invested over US$300m in microfinance institutions and funds to date, reaching out to over 15 million women clients.
There are a number of reasons why microfinance is important for women and their families. According to the World Bank, only 50 per cent of women in the world have access to formal financial services and microfinance institutions aim to improve this statistic. However microfinance is not only economically but also socially empowering for women by enhancing their status in male-dominated societies, improving financial literacy, and allowing them to scale up their businesses. Also, when women participate in the workforce and are earning, it tends to have a positive impact on the family as a whole with evidence suggesting that women reinvest 90 per cent of their income back into the families, while that figure is just 35 per cent for men.
Can you give us any examples of how CDC’s investee companies have supported women?
CDC recently invested in Equitas, an Indian microfinance institution based in Chennai, Southern India. Its clients are women who run small businesses.
We decided to invest in Equitas because the company prides itself on being a responsible lender – before loans are given, borrowers attend three days of financial training and further support and advice is provided afterwards too. Equitas has helped many women entrepreneurs. Kala was given a loan equivalent to around US$160 to buy a sewing machine and start her tailoring business. When colleagues met Kala recently in Chennai, she said she was close to repaying the loan and she uses the extra income she now generates to pay for her children’s education.
In Africa, CDC has invested in DCFU Bank in Uganda, which helps support women entrepreneurs to start and build their businesses. For example, Yvonne Katamba used a loan to help grow her cleaning business. In just 10 years, it grew from an annual turnover of US$2,000 to US$275,000, and she now employs 175 people.
What plans does CDC have for future investments?
At CDC, we will continue to invest in sectors and business which can create jobs and make a lasting impact to people’s lives. This includes supporting companies in Africa and South Asia that help to empower women.
In the last financial year, our figures suggest the businesses we invest in employ 165,000 direct jobs for women. Our aim is to continue to build on this, so we can provide opportunities to even more people in some of the poorest parts of the world.