CDC Group invests €56 million to finance SMEs in Africa
CDC Group, the UK's development finance institution, has invested $75 million (€56.5 million) in the Africa Development Partners II LP Fund (ADP II).CDC Group, the UK's development finance institution, has invested $75 million (€56.5 million) in the Africa Development Partners II LP Fund (ADP II).
The ADP II fund invests in companies in various sectors, including financial services. It will provide capital to high-growth African businesses to help them develop and contribute to the economic growth on the continent.
The fund will typically take significant minority stakes in businesses, focusing on high growth companies that are seeking to expand into newly liberalising countries, such as Angola, Ethiopia, Mozambique and Rwanda,
the CDC said
in a statement.
"As a development finance institution with a focus on supporting the building of businesses to create jobs across Africa, it’s vital for CDC that our investment partners are able to invest and deliver strong financial returns in less developed markets as well as more developed economies",
said Jeremy Cleaver, director of CDC portfolio of markets.
The fund will also support improved governance in companies and the implementation of good social and environmental practices.