CDC plans to invest $4.5bn in Africa

The UK's development finance institution, CDC Group, has recently announced a $25 million-dollar commitment to a local fund backing small and medium-sized businesses in Nigeria. Nick O'Donohoe, CEO of CDC Group, joined CNBC Africa to discuss the group's plans for Nigeria and the significance of investing in Small and Medium Enterprises (SMEs) for economic development. O'Donohoe highlighted that SMEs are crucial drivers of employment in any country, including Africa and South Asia, and supporting them is essential for economic growth. CDC Group has a history of investing in private equity funds in Nigeria, dating back to 1998 when they were a cornerstone investor in the first energy fund. O'Donohoe emphasized the importance of investing in sectors like infrastructure, financial services, agriculture, health, education, and manufacturing, as they play a significant role in creating jobs and stimulating the private sector. With nearly $400 million already invested in Nigeria, CDC Group aims to increase its investments in the country as part of their broader strategy to invest $3.5 billion pounds in Africa over the next four years, with a focus on sub-Saharan Africa. O'Donohoe mentioned that Nigeria is expected to be a key recipient of the investment target, with a potential goal of reaching a billion dollars in investments over the next three to four years. In an effort to enhance collaboration and address investment barriers, CDC Group organized a round table with institutional investors, development finance institutions, pension funds, and sovereign wealth funds to identify ways to attract more investments in Nigeria. The meeting aimed to foster partnerships and find solutions to facilitate increased investment in the country.