CDC spending in Africa tops $1.5 bn, plans to increase

The CDC, the UK's development finance institution, is making significant strides in Africa with plans to increase its investment levels on the continent. Over the last three years, the CDC has invested over $1.5 billion across various sectors in Africa and is poised to boost that amount in the coming years. Nick O'Donohoe, the Chief Executive Officer of CDC, shed light on the organization's mission to support businesses in Africa and South Asia. With a history dating back almost 70 years, the CDC stands out as the world's oldest development financial institution. It is wholly owned by the U.K. government's Department for International Development, which recently announced a substantial increase in capital allocation to CDC. This boost in funding is expected to fuel more investments in Africa, fostering economic development and job creation over the next five years. Despite the challenging times faced by the African continent, CDC sees numerous opportunities for growth and development. The organization has a diversified investment portfolio, focusing on key sectors such as power, agriculture, financial services, health, and education. In the power sector, CDC has ownership stakes in companies like GlobalEck and MCOPA, making significant strides in power production and solar energy provision in multiple African countries. CDC's investments in agriculture include companies like Zambif and Feronia, contributing to agricultural development in countries like Zambia and the Democratic Republic of Congo. The organization's investment footprint in Africa extends to 650 businesses, showcasing its commitment to driving economic growth and sustainability across the continent. When it comes to assessing investor readiness in the businesses they support, CDC emphasizes the importance of management capacity and preparedness to take on investments. While challenges persist, CDC provides grant programs and capacity-building initiatives to bolster the capabilities of businesses in which it invests. CDC's decision to open an office in Johannesburg marks a significant step in reinforcing its presence in Africa. The move reflects CDC's strategy to establish on-the-ground operations and engage more closely with businesses and stakeholders in the region. Amidst the Brexit situation, CDC remains focused on its mission, unaffected by external factors like political developments. The organization's primary concern is to ensure continued support from the U.K. government for international development initiatives, with CDC playing a pivotal role in driving development impact and job creation. As a double bottom line investor, CDC measures its success through financial returns and developmental impact, particularly in job creation. By creating both direct and indirect employment opportunities, CDC contributes to sustainable growth and prosperity in the African business landscape. While Africa has gained a new trading partner in China and Asia, CDC's commitment to investing in the continent remains steadfast. The influx of Chinese investments in Africa has brought about increased competition and opportunities, but CDC sees this as a positive development that can further stimulate economic progress and development in the region. With a strong focus on driving positive change through strategic investments, CDC continues to pave the way for economic growth and job creation in Africa.