CDC Group, a UK owned development finance institution has announced its plans to invest the total sum of $1 billion in critical sectors in Nigeria and other African countries.
According to a disclosure by Bloomberg Africa, the areas of focus this year will be key sectors such as; infrastructure, climate projects and finance. The Group is also part of a consortium considering a bid for a new telecommunication license in Ethiopia.
Recall that Nairametrics had earlier reported plans by the CDC group to invest $245 million in 100 Nigerian businesses, with an estimated direct impact on 38,000 jobs in the country.
What they are saying
Commenting on the recent development, the Chief Executive Officer of CDC, Nick O’Donohoe as quoted by Bloomberg Africa, said that the group will target markets such as Egypt, Ethiopia, Kenya and Nigeria, while also considering putting money into more remote, frontier locations.
He said: “The two areas we will be particularly focused on this year are accelerating our climate-related” and technology-based investments. In addition to that, we are a big investor in infrastructure and will continue to be.”
Why this matters
Given the negative impact of the pandemic on most African economies, a 2020 World Investment report by the United Nations Conference on Trade and Development (UNCTAD) predicted that Investment flows in Africa contracted by 25% to 40% in 2020. Therefore, the $1billion pledge is a major boost in resuscitating economic activities, shoring up Foreign Direct Investment (FDI) and driving development in the continent.
What you should know
- According to the CEO of the CDC Group, Nick O’Donohoe, CDC has invested more than £2.7 billion ($3.7 billion) in Africa over the past three years.
- Mr. O’Donohoe also revealed that the CDC had earlier entered into a partnership with Vodafone Group Plc and Sumitomo Group to bid for a mobile-phone license in Ethiopia as part of the country’s partial privatization of the economy.