The Department for International Development has opened a consultation on the future of its CDC development finance institution, in an effort to increase private investment in development work.

The CDC is a finance wing of Dfid that provides capital for businesses in developing countries to stimulate economic growth. The consultation, running from now until the end of January, asks via an online survey for evidence-based proposals on which areas the organisation should focus on to maximise impact and encourage private investment.

The consultation is part of a wider reform of the CDC. The reform will see a wider range of financial tools, such as debt management, equity and guarantee, being provided by the institution. It aims to bring private investment into geographical areas investors are traditionally reluctant to enter.

Secretary of State for International Development, Andrew Mitchell, said: "CDC will be the jewel in the crown of the UK's efforts to maximise the private sector's potential to contribute to development.

"Reforms will allow CDC to put more investment in businesses which would never otherwise have been considered. By breathing new life into private sector-led development, it will allow more people in the poorest countries an opportunity to use their own enterprise to create a path out of poverty."

The reform follows news that Dfid's budget will grow by 50 per cent to £11.5bn by 2015. 

The results of the CDC consultation will be published with the CDC's new business plan on the Dfid website in spring next year.