CDC Group, a UK funded impact investing organization, intends to invest $1 billion (KSh110 billion) in African businesses in 2021 according to an interview with Bloomberg. The company has its focus on fast-developing economies like Kenya, Ethiopia, Nigeria and Egypt. CDC group says it will also invest in remote underdeveloped African countries.
Some the areas the company plans to invest in include, climate-related projects, infrastructure development and the finance sector. CDC Group CEO Nick O’Donohoe said that the $1 billion investment follows a similar commitment made to the African continent in January 2020.
In October last year, the UK development finance institution made a $40 million equity investment in Liquid Telecom, Africa’s largest fibre network and East Africa’s most advanced and largest data centre. The investment is meant to expand internet connectivity across Africa.
“Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth. Improving access to affordable and quality internet is central to Africa’s development and economic growth, and a key part of UN Sustainable Development Goal 9,” CDC Group says on its website.
CDC Group has also partnered with Vodafone Group and Sumitomo Group in bidding for a telecommunications license in Ethiopia, the nation with the second-highest population in Africa. The process suffered delay in late last year due to civil unrest in the country. However, the bidding process is now back on track.
In the last three years, CDC Group has committed more than £2.7 billion (KSh407 billion), more than half of the organization’s capital in Africa, Bloomberg reports.