By 2030, the world’s labour force will grow by around 470 million people. For developing countries, providing hundreds of millions of good and decent jobs and livelihoods is a massive challenge and opportunity to eradicate poverty and transform economies (UN High Level Panel).
The private sector provides nine out of ten jobs in developing countries. So helping businesses grow is essential for job creation. According to World Bank Enterprise Surveys of over 73,000 companies in 121 developing countries, the top two constraints facing businesses are access to finance and the quality of infrastructure like energy.
We invest capital to help businesses overcome these obstacles. Smaller and younger businesses have higher rates of job growth; larger and more established businesses are more stable and offer higher wages and more training (IFC). We invest in businesses of all sizes to support a well-balanced private sector.
We invest where we can have greatest development impact. Our focus is on the sectors where investment leads to the greatest numbers of new jobs – both directly and through the supply chain. And we actively engage with fund managers and investee companies to improve environmental, social and business integrity.
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How CDC assesses job creation potential when considering investment opportunities