- The UK’s development finance institution, CDC Group has announced it invested close to £2.2BN total in African businesses for 2020/21 – beating its 2020 Africa Investment Summit pledge of £2BN
- Clean infrastructure and climate finance key to CDC/BII’s strategy over the next five year period
- CDC Group to be rebranded British International Investment (BII) in March 2022
CDC Group (CDC), soon to be British International Investment (BII), announced it has invested close to £2.2 billion total in African businesses over a two year period – beating its 2020 Africa Investment Summit pledge of £2 billion. Investing in Africa’s clean infrastructure will be the focus of CDC/BII’s strategy in the next five years with at least 30 per cent of total investment by value used in climate finance. Between £1.5 billion and £2 billion every year between 2022 and 2026 will be invested to support the UK government’s Clean Green Initiative (CGI).
Chris Chijiutomi, CDC Group’s director and head of infrastructure equity, Africa and Pakistan, said:
“Clean infrastructure investment ...will go beyond renewables. Clean water provision, forestry and agritech, for example, will become increasingly important moving forward.”
CDC/BII has grown significantly since 2017, increasing both the scale of its operations and investments, having committed almost £7 billion ($9 billion) in what it says are long-term, impactful investments in some of the hardest places to invest in the world. On average CDC/BII now invests around £1.5 billion a year and manages around £7.5 billion ($10 billion) in assets today. It has also more than doubled headcount to 500.
In 2020, CDC/BII group secured its largest ever deal in Africa, worth up to $1.7 billion, in partnership with global logistics provider DP World to boost Africa's global trade connectivity through port expansion in Senegal, Egypt and Somaliland. Other key investments over the past two years include $40 million towards the independent fibre and cloud provider in Africa, Liquid Telecom’s expansion. And in May 2021, the CDC/BII, alongside Safaricom Plc, Vodacom Group, Vodafone Group, Sumitomo Corporation, received a licence to operate telecom services as part of the Global Partnership for Ethiopia.
FYI/the UK government’s Clean Green Initiative (CGI) aims to scale up public and private investment in quality, sustainable infrastructure globally, providing for climate finance to the developing world, the democratisation of green tech and other solutions to the climate crisis. Announced at COP26, the CGI will deliver over £3 billion in climate financing for green growth in developing countries over the next five years through the CDC/BII.