CDC Group, the UK’s development finance institution, has announced that it exceeded its 2020 commitment to invest £2bn in Africa over the last two years.
The company, which would soon be renamed British International Investment, said it invested close to £2.2bn in total in African businesses in 2020 and 2021, despite the unprecedented upheaval caused by the Covid pandemic, according to a statement.
Its Chief Executive, Nick O’Donohoe, said, “I am delighted that we exceeded the ambitious target we set at the Africa Investment Summit held in London in 2020. This was during a period when CDC rapidly pivoted to support our portfolio and mitigate the economic fallout of the pandemic in the countries in which we invest. The role of DFIs such as CDC was vital in supporting vulnerable countries that did not have the financial reserves to protect their economies.”
“Moving forward, British International Investment intends to invest between £1.5bn and £2bn per annum between 2022 and 2026 to support the UK government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in Africa, parts of Asia and the Caribbean.”
The statement said last year saw CDC/BII make its largest ever deal in Africa – a partnership with DP World worth up to $1.7bn – to significantly boost the continent’s ability to trade globally by expanding its port capacity.
According to the statement, other key investments include Liquid Telecom, that is building a pan-African fibre-optic network, and in the Global Partnership for Ethiopia, a consortium led by Vodafone to build a new, world-class mobile network in Ethiopia.
It said investing in clean infrastructure would be central to the DFI’s strategy over the next five year period.
The statement said at least 30 per cent of total investment by value would go into climate finance.
It said among the major clean infrastructure investments made in Africa by the company over the last strategy period was a $100m (£75.5m) commitment to the Nachtigal Hydro Power in Cameroon, $50m (£36.8m) for the Malindi Solar Project in Kenya [which became operational recently] and $50m (£36.8m) for ACWA Power in South Africa.
Original story on MSN