UK’s development finance institution CDC Group scrutinised by MPs
24 March 2022
The International Development Committee (IDC) will hold a session with the leadership of CDC Group and senior Foreign, Commonwealth and Development Office (FCDO) officials.
- Watch Parliament TV: Extreme poverty and the Sustainable Development Goals
- Inquiry: Extreme poverty and the Sustainable Development Goals
- International Development Committee
Purpose of the Session
Wholly owned by the FCDO, CDC works to help fill a shortage of finance for private sector investment in developing countries, in support of the UK Government’s economic development strategy.
As part of its ongoing inquiry into extreme poverty and the Sustainable Development Goals, the Committee is likely to discuss the rationale, objectives, and implications of CDC’s recent rebranding to British International Investment (BII). The Government has said the organisation will be key to the mobilisation of up to £8 billion a year of public and private sector investment in international projects by 2025.
Last year IDC Chair Sarah Champion raised concerns over the lack of the word ‘development’ in the institution’s new name, while calling for firm commitments for a focus from CDC on education, nutrition and health and a cessation of fossil fuel investments.
MPs are also likely to use the session to explore CDC’s policies and priorities around climate finance, tackling modern slavery, women’s economic empowerment and education, and how the FCDO makes decisions around funding CDC.
Witnesses’ views are likely to be sought on the effectiveness of private sector investment in reducing poverty as compared to traditional grant aid.
Other topics of discussion could include the key changes to CDC’s strategy and investment policy through to 2026, the adequacy of its accountability, transparency and governance arrangements, and to assess whether its investment activities support the UK Government’s strategic priorities abroad while driving development impact.
Tuesday 29 March 2022, Grimond Room, Portcullis House
- Nick O’Donohoe - Chief Executive Officer at CDC Group
- Diana Layfield - Chair at CDC Group
- Mita Samani - Head of the Private Sector Department at Foreign, Commonwealth & Development Office
- Caroline Read - Director of Economic Cooperation and Growth Directorate at Foreign, Commonwealth & Development Office
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