the cdg approach development finance · cdg is a public financial institution established in 1959...
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Casanearshore
CDG has
developed the
largest offshoring
park in Morocco,
generating more
than 20,000 jobs
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Midpark is a 165-
hectare industrial
park near
Casablanca,
dedicated to
aeronautics, which
already attracted the
large Canadian
aircraft manufacturer
Bombardier, with a
substantial
investment (over
USD 200 million)
MidPark
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Renault Tanger
CDG provided
equity financing
to build on of the
largest car factory
in Africa (400,000
cars / year)
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Zenata eco-city
On the outskirts of
Casablanca,
CDG is building an
ambitious new
smart eco-city aiming
to accommodate
300,000 residents
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Taghazout bay
Taghazout bay is a
seaside resort
spread out over 615
hectares, including
7 luxury hotels with
7446 beds, a golf
course, a residential
zone (villasand
apartments), a
Medina resort
center, a surfing
village and sporting
infrastructures,
leisure equipment
and an Argan
protection area.
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…and 100 other large scale projects
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Mission
► CDG is a public financial institution established in 1959 to protect institutional savings which has
evolved over time to meet national development challenges.
► CDG is a unique institution featuring elements of pension funds, sovereign funds, development
banks, financial holdings etc.
► The economic model of CDG relies on two pillars :
• Collecting and securing regulated savings , including social security contributions, postal accounts, judicial
deposits, consignment accounts etc.
• Supporting national economic development by channelling long term savings towards profitable and growth-
generating investments. Financing and implementation of projets (+100 subsidiaries)
► CDG is commited to create long term value as part of its dual mandate :
• Ensuring security and yield for depositors (private-oriented mandate)
• Generating positive spillovers for the moroccan economy (development-oriented mandate)
CDG is a public financial institution pursuing a dual mandate
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G
Economic Model
CDG channels long term savings towards profitable,growth-generating investments
Regulated
savings
Long term
Investments
CDG Social security
contributions, postal
accounts, judicial
deposits, consignment
accounts etc.
Financial investments
Development investments
Multiplier effect
debt, co-investment,
induced investments
Sound investment policy,
Asset-Liability Management
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Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Regulated savings
Social security contributions,
postal accounts, judicial
deposits, consignment
accounts etc.
Multiplier effect
debt, co-investment,
attraction of private
investments
Equity
Retained earnings generated
by highly profitable assets
Economic Model
8 billions USD
Ressources
2 billions USD
Trustworthiness
and credibility
CDG a credible institution which
can attract and build trust among
different partners (public and
private)
3 billions USD
Assets
1.2 billions USD/ year
Financial investments
Bonds, monetary
instruments
Development projects
Areas : Tourism, Urban
development, Economic zones,
Real Estate
Portfolio : More than 50 large
scale projects
Project Units : establishment of
dedicated companies to manage
projets
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Business lines
Regional development Banking and finance Savings and social
security management
• Urban development
• Real estate
• Economic zones :
manufacturing, tourism, agro-
business, offshoring
CDG is a diversified group spanning a broad spectrum of activities
• Commercial banking
• Capital Markets
• Investment management
• Insurance and re-insurance
• Pension funds
• Savings management
Supporting government sectoral
policies
Plan Emergence, Plan Maroc Vert,
Plan Azur, Plan Halieutis etc.
Enabling financial development
CDG is the largest financial investor in
morocco, leading financial innovations,
developing capital markets, energizing
private equity industry and acting as
the gateway for foreign investors in
Morocco
CDG activitives are strategically aligned with national development objectives and policies
Contributing to the national
pension system reform
CDG has accumulated a unique
expertise in managing and
integrating various pension funds
1 2 3
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Project selection criteria
► Long term focus
► Large projects
► Financial sustainability
► Strategic alignment with governement policies
► Additionality : CDG is willing to take more risk than the private sector by investing in
new activities (first mover and incubator), spuring enterpreneurship, unlocking the growth
potentiel of more remote regions, conducting large-scale projects, even during economic
downturns (counter-cyclical role), and for appropriate long term returns.
► Externalities
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Key advantages of CDG Model
Long term focus on development AND financial sustainability
Economies of scale and financial capacity to engage in large scale projetcs with economies of
scale
Expertise : CDG has been successful in attracting among the best talents in the country which
helped in developing a unique expertise in pioneering and managing complex and large-scale
development projects.
Trustworthiness and credibility : CDG is widely viewed as a credible partner because of its
icapacity to build trust among project partners (public and private), which helps in facilitating
coordination and reduce transaction costs.
Private sector mindset and financial discipline (dual mandate)
Multiplier effect : strategic investments that catalyse additional resources, thanks to CDG credibility
(co-investment), creditworthiness (debt), and spillovers (induced investments) : 1 USD billion CDG
investment generates 1,7 USD billions additional private investments
Macro-prudential benefit: CDG improves capital efficiency allocation by channeling long term
savings towards productive investments while preventing speculative bubbles, in a country where
domestics markets are narrow and capital outflows restricted (limited investment options for
institutional investors)
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Performance
Economic Impact
• Investment program « Oufoq 2015 »
• 2011-2015 : 7,6 Billions USD
• 1,2 Billions / year
• Long-term impact
• CDG recently conducted a « prospective impact
study » covering 50 large-scale projects currently
under-development
• Rigorous methodology taking into account
« displacement effects » and « attribution issue »
• Estimated impact of 230,000 additional jobs over
the long term (amounting 10% of net job creations
over 2010-2030)
• Careful investment projects selection
• Asset-Liability Management
• Central bank supervision
CDG is successfully achieving its dual mandate
• Total assets : 20 Billions USD
(20 % of GDP)
• Deposits : 8,2 Billions USD
• Equity : 2 Billions USD
• Net income : 114 Millions USD
Financial Soundness
• Transformational, large-scale projects
• Externalities and multiplier effect on investment
• Strategic alignment with national development policies
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Selected achievements
CDG conducts high-impact projects to catalyse change and accelerate
morocco’s economic transformation
Regional development Banking and finance Savings and social
security management
Casanearshore Renault Tanger Pension funds management
CDG has successfully integrated
several SOE internal pension
funds
Zenata eco-city
CDG provided equity financing
to build the largest car factory in
Africa (400,000 cars / year)
CDG develops and manages the
largest offshoring park in Morocco,
generating more than 20,000 jobs
Securitization
CDG was instrumental in
developing securitization in
Morocco by supporting the
governement in laying out the
legal framework, as well as
pioneering transactions
International recognition for
high-quality standards
RCAR, a pension fund managed
by CDG, was granted second
prize of United Nations Public
Service Award in 2012
On the outskirts of Casablanca,
CDG is building an ambitious new
smart eco-city aiming to
accommodate 300,000 residents
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5 lessons learned (areas of improvement for CDG)
► Attract the best talents (transparent HR policy)
► Ensure the financial substainability for each single investment
(gouvernance, investment committee with external experts, prudent
use of cross-subsidies)
► Build a central unit in charge of strategic planning and cost
optimization (solving the agency problem)
► Use a contract-based approach with the state (support not replace
the government policies)
► Partner systematically with the private sector to maximize the
multiplier effect
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THANK YOU FOR YOUR ATTENTION
