The UK, other G7 countries, and multilateral partners including the International Finance Corporation, the African Development Bank, and the European Investment Bank have announced plans to collectively invest $80 billion in Africa’s private sector over the next five years.
According to the UK government, the funds will go toward supporting the long term development goals of African economies. Renewable power, agriculture, infrastructure, manufacturing, and technology are some of the sectors set to benefit from the investments.
The development institutions aim to provide clean and reliable energy to millions of people, increase access to finance, create jobs, and reduce poverty throughout the continent.
UK’s Minister for Africa James Duddridge said, “The UK is proud to back this commitment by world leaders at the G7 Summit to invest more than $80 billion in Africa’s private sector over the next 5 years. This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by COVID-19”.
At the start of 2021, UK based development finance institution CDC Group unveiled a plan to invest $1 billion in key markets in Africa including Egypt, Ethiopia, Kenya, and Nigeria.
Chief Executive Officer of CDC, Nick O’Donohoe said, “As an impact investor and DFI, CDC is committed to providing long-term investment particularly in challenging times. As FDI continues to drop, we maintain our steadfast commitment to African businesses as they play a leading role in accelerating Africa’s economic and human development”.
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