The UK’s development finance institution, CDC Group is in search of compelling new long-term investment opportunities, prioritising the Francophone West Africa region.
CDC wants to invest around $4bn across Africa over the next five years and is focusing primarily on identifying talented local entrepreneurs and businesses in the infrastructure, financial institutions, food and agriculture, manufacturing, construction, health and education sectors.
Mark Pay, Managing Director of Equity Investments at CDC, said: “We see great opportunities in this region. CDC has been investing here even when it was perceived to be risky and problematic.”
“We are encouraged by the work we’ve done in these markets already, and are using this trip to establish new connections and source deals in more innovative and impactful ways to support the growth of local businesses.”
CDC is currently visiting Senegal and Côte d’Ivoire following the institution’s recent recapitalisation.
Senegal and Côte d’Ivoire are priority markets for CDC as both countries are strategic hubs for Francophone West Africa and are making significant economic and developmental strides.
CDC believes this progress can be accelerated through the deployment of patient capital and specialist expertise to the most promising local businesses to scale up impact in innovative ways through flexible and well-structured deals to support inclusive growth.
In each country, a CDC team of 15 senior leaders will meet with government representatives, local entrepreneurs and business owners to understand their investment requirements and explore ways in which CDC can provide flexible, long-term capital via debt and direct and indirect equity investments.
The trip comes at an exciting time for CDC, which continues to evolve under the leadership of its new CEO, Nick O’Donohoe, who has set out a clear vision to scale up investments designed to build competitive businesses and create decent jobs in Africa.
Building on CDC’s substantial network across the continent and an African investment portfolio which includes over 650 companies, with nearly 20% of its investments in Francophone Africa, O’Donohoe outlined the firm’s plans:
“We are actively looking to extend our investment activity in Senegal and Côte d’Ivoire, because we believe that a balanced private sector is necessary for economic development and robust job creation.”
“As we search for innovative and ambitious businesses to support, we have a strong value proposition to offer and a unique track record of successful investments in Africa. We run highly commercial investment processes because development impact is well-correlated with strong financial performance,” he added.
