The DFID Impact Fund, Managed by CDC

Capacity builderInvestor in funds

User Profile

The DFID Impact Fund, managed by CDC, invests in funds that combine a clear and significant pro-poor impact with financial discipline. The Fund of Funds was set up by the UK Department for International Development and CDC, the UK’s Development Finance Institution, with the goal of transforming the market for impact investment in Sub-Saharan Africa and South Asia to benefit poor and low-income people. The Fund seeks to make investments that provide benefits to livelihoods for low-income people, either through improved access to goods and services, or through improved income generating opportunities. The Fund also seeks to catalyse further capital through proving the financial viability of pro-poor business models and demonstrating the positive impact that this type of investment will deliver. Investments are focused in low-income and lower-middle income countries in Sub-Saharan Africa and South Asia, and cover a range of sectors.


The DFID Impact Fund seeks to track certain common indicators across funds and underlying companies regarding financial performance and number of beneficiaries reached. Additional sectoral and operational metrics are selected where relevant for specific investee companies. These are identified through baseline reports, completed for each new investee company. Common metrics are tracked quarterly, company and fund specific metrics are tracked quarterly or annually as appropriate. Data is then aggregated and reviewed within an annual impact report. The overall Results Framework for the DFID Impact Fund is managed by a Programme Coordination Unit (commissioned by DFID and managed by PwC) that is independent of CDC.

Other Impact Measurement Tools

Additional metrics are used, alongside IRIS metrics, to ensure financial and ESG reporting is in line with industry standards, and to track outcomes and impact at the Base of the Pyramid. Financial and ESG reporting is consistent with CDC’s standard framework, and International Private Equity and Venture Capital (IPEV) Reporting guidelines. Outcomes and impact at the Base of the Pyramid are assessed by tracking beneficiaries within specific income bands, as agreed with the Fund Manager per investment. In addition to regular reporting, the DFID Impact Fund will conduct deep dives on investee companies to further assess investment performance and pro-poor impact. Independent external evaluations will be conducted at regular intervals throughout the Fund lifecycle.