CDC Group, a UK based investor and development finance institution (DFI) has announced a commitment to invest over $1 billion again in African businesses in 2021.
The institution through this seeks to expand its Africa portfolio with new investments in key markets including Egypt, Ethiopia, Kenya.
The commitment will enable CDC to invest in many more promising African entrepreneurs and SMEs, and continue to drive inclusive growth and job creation across the continent
The funds will be invested in financial institutions, infrastructure and climate, services, manufacturing, agriculture, real estate and technology.
“As an impact investor and DFI, CDC is committed to providing long-term investment particularly in challenging times,” said Nick O’Donohoe, Chief Executive Officer of CDC.
In 2020, CDC committed over $1 billion into Africa with the focus being economic recovery from Covid-19.
CDC injected systemic liquidity into financial markets, provided capital for companies that deliver critical goods and services, made new commitments to African funds and protected existing investees to help them sustain employment.
Foreign direct investment (FDI) into Africa is predicted to have declined by 30 per cent, according to the World Investment Report 2020.
“As FDI continues to drop, we maintain our steadfast commitment to African businesses as they play a leading role in accelerating Africa’s economic and human development,” said Nick.
CDC’s maintained investment pace provides counter-cyclical funding at a critical time for the continent.
The fund’s investment activity is equivalent to an ever-greater proportion of foreign direct investment into Africa.
As the world’s largest bilateral development investor in Africa, CDC has invested more than £2.7 billion in African businesses over the past three years.
In 2019, CDC’s investments supported over 320,000 direct jobs in Africa, contributing close to US$1.5 billion in taxes to local economies.