§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will make a statement on the progress of CDC Capital Partners managed investment funds within the last 12 months. [115349]
§ Hilary BennSince the strategic review of CDC in 2002, the organisation has yet to launch any new dedicated managed investment funds.
CDC currently manages and continues to invest our three existing managed funds, Commonwealth Africa Investment Fund; South Asia Regional Fund; and Nandi Investments. CDCs joint venture, Aureos Capital, has already raised funds from third party investors for a Central American SME fund and is in the process of raising funds for three regional African SME funds.
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will make a statement on the privatisation of CDC Capital Partners. [115351]
§ Hilary BennCDC Capital Partners, the trading name of CDC Group plc, a company wholly owned by the government, was established in 1999 as a result of the Commonwealth Development Corporation Act. We have no plans to privatise this company. We are however currently in the process of preparing for its reorganisation. The purpose and format of this reorganisation were set out in a Written Statement tabled by the Secretary of State for International Development on 27 November 2002,Official Report, column 37WS. It was also described in evidence given by Ministers, officials and CDC management to the Select Committee on International Development in December 2002.
Since then, preparations have been proceeding on the lines described and it is hoped to reach agreement with a view to implementing the plans by the end of the year. I plan to table a further Written Statement in due course.
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will make a statement on CDC Capital Partners investment strategy in sub-Saharan Africa; and whether it has changed in the last 12 months. [115352]
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§ Hilary BennFollowing a strategic review in 2002, it was concluded that CDC would narrow its focus and concentrate on making investments in defined geographies and sectors—primarily, Africa and South Asia and the SME and power sectors. It is intended that CDC will raise third party funds for Africa later this year.
Over the past 12 months, CDC has made some significant new investments within the power, agribusiness and consumer business sectors in Africa. Its joint venture, Aureos Capital, is in the process of raising funds for three regional African SME funds. CDC remains committed to growing sustainable businesses in Africa.
§ Gregory BarkerTo ask the Minister of State, Department for International Development what plans there are to attract private capital investors in CDC Capital Partners. [115353]
§ Hilary BennThere are no plans to attract private capital investors in CDC Capital Partners as such.
However, the mobilisation of private capital for the benefit of poorer developing countries is the fundamental objective of the proposed reorganisation of CDC. As part of this re-organisation, it is planned that CDCs investments will be made through specialised funds, dealing with specific sectors or geographical areas. Private sector co-investment into these funds will be actively sought and it is expected that fund raising will start later this year.
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will make a statement on the progress of CDC Capital Partners in attracting private sector co-investment. [115354]
§ Hilary BennIn August 2002, it was announced that, from 2003, CDC would organise its investment activities through specialised funds. This reorganisation is progressing well and it is intended that fund raising, which will include attracting private sector co-investment, will start later this year.
CDCs joint venture, Aureos Capital, has already raised funds from third party investors for a Central American SME fund and is in the process of raising funds for three regional African SME funds.
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will list(a) the countries in which CDC Capital Partners has opened offices since July 2002, (b) the location of those offices and (c) the staff assigned to each office. [115358]
§ Hilary BennNo new offices have been opened since July 2002.
§ Gregory BarkerTo ask the Minister of State, Department for International Development what rate of return has been achieved on each CDC Capital Partners investment by(a) sector and (b) country since 1997. [115360]
§ Hilary BennThe cost involved in gathering all the data requested would be disproportionate.
However, CDCs annual overall portfolio performance before costs since 1997 has been as follows. 261W
Per cent. 1998 -5.3 1999 +7.9 2000 -0.1 2001 -10.3 2002 +6.4
CDC Capital Partners—Balance Sheet Analysis £ million March 2002 June 2002 September 2002 December 2002 March 2003 Total Assets Under Management 861.8 827.6 806.7 805.1 801.6 Fixed Assets 26.0 25.8 25.6 25.4 25.0 Short Term Deposits and Cash 191.5 219.6 270.3 256.3 258.2 Other Net Current Assets -44.1 -26.2 -33.1 -51.0 -38.0 Amounts Falling Due After More Than One Year -28.6 -29.6 -29.8 -25.4 -25.4 Total Assets Less Total Liabilities 1,006.6 1,017.2 1,039.7 1,010.4 1,021.4 Loans From Government -755.0 -755.0 -755.0 -755.0 -755.0 Net Assets 251.6 262.2 284.7 255.4 266.4 Share Capital 10.0 10.0 10.0 10.0 10.0 Reserves 241.6 252.2 274.7 245.4 256.4 Total Capital and Reserves 251.6 262.2 284.7 255.4 266.4
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will list CDC Capital Partners(a) investments and (b) disposals by (i) sector, (ii) size and (iii) country since July 2002. [115365]
§ Hilary BennI have placed spreadsheets in the Library, entitled CDC Capital Partners Investments which give the relevant information.
§ Gregory BarkerTo ask the Minister of State, Department for International Development what level of debts has been accrued by CDC Capital Partners in the form of government loans allocated by the Department. [115366]
§ Hilary BennCDC Capital Partners took over £755 million in interest-free loans made to the former Commonwealth Development Corporation by DFID. No new loans have been made to CDC Capital Partners since then.
§ Gregory BarkerTo ask the Minister of State, Department for International Development how many Commonwealth nationals employed by CDC Capital Partners have been made redundant since July 2002. [115367]
§ Hilary Benn16 Commonwealth (including UK) nationals have been made redundant since July 2002. This is mainly due to office closures or the fact that certain CDC-employed Commonwealth nationals have bought out a business from CDC or have stayed with the new owners of a business that CDC has sold.
Since July 2002, CDC has taken on in employment 31 Commonwealth nationals. CDCs total staff levels have increased by one since July 2002, rising from 303 to 304.
§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will list CDC Capital Partners agricultural(a) investments and (b) disposals (i) by country and (ii) by sector since July 2002. [115368]
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§ Gregory BarkerTo ask the Minister of State, Department for International Development if he will list the(a) assets, (b) liabilities, (c) equity and retained earnings and (d) net income of CDC Capital Partners in each of the last five quarters. [115364]
§ Hilary BennThe information requested is as follows:
§ Hilary BennSince July 2002, the following new agricultural/agribusiness investments have been made:
Company Country Sector Flamingo Holdings Kenya Integrated horticultural business During this period, CDC also provided further finance for Sulmac, Big Falls and ACI (all mentioned in the following table). CDC also invested further in Del Oro (Costa Rica), an orange juice production company in Costa Rica.
The following disposals have been made:
Company Country Sector Del Oro Belize Orange juice production Sulmac Kenya Horticultural business Lake Harvest Fish Farm Zimbabwe Fish farming Aquacorporacion International Costa Rica Fish farming Big Falls Plantation Belize Orange growing