Gabon: CDC is finalizing its CFA20 billion equity fund

Oct 30, 2018 | Ecofin Agency

CAISSE DES DEPOTS ET CONSIGNATIONS (CDC), Gabon’s deposit and consignment fund, is finalizing the launch of a CFA20 billion equity fund. This was disclosed to Ecofin Agency by one of the company’s managers during the investment forum held in Geneva, Switzerland on October 22-26, 2018.

"We are still working on the structure of such fund and are adapting optimally to the development of the environment. Next year, we will kick off specialized meetings to inform potential investors but also discuss the advantages of long-term savings”, said Cesaire Tsinga, CDC’s Strategy Director.

In the framework of that project, CDC had signed a tentative agreement with Islamic Corporation for the Development of the Private Sector (ICD) for a stake acquisition whose amount has not been revealed yet. The ICD has now a new president and seems more inclined towards loans than equity participation.

Even though the choice this institution will make toward CDC is not yet clear, CAISSE DES DEPOTS ET CONSIGNATIONS is preparing for any eventuality.

"As you know, launching public offering within CEMAC zone is subjected to strict regulations so, we will have to mobilize all the competent regulatory authorities", Cesaire Tsinga explained. CDC plans to invest its funds in high yield sectors, Gabon’s real estate notably.

The institution is also open to joint ventures with foreign investors interested in opportunities provided by the country, which is now engaged in diversification. This diversification potential has been largely defended during the African panels of the World Investments Forum, by Ghislain Mboma, CDC’s Investments Promotion Manager at Gabon’s investment promotion agency ANPI-Gabon.

"With more than 5% average yearly growth and forecasted to be more than that till 2020, Gabon offers numerous opportunities notably in the non-oil sector which is witnessing steady growth", Ghislain Mboma indicated defending the country’s potentials.

Source: Ecofin Agency