British firm plans $4.5b investment in Africa

CDC Group, Britain’s development finance agency, plans to invest up to $4.5 billion across Africa over the next four years to boost ties with the continent. Britain, which is set to cut ties with the European Union in March, is hoping to bolster ties with main economies such as Nigeria, South Africa and Kenya. Mr. Nick O’Donohoe, the Chief Executive of CDC Group, said the company has invested nearly $400 million in Nigeria, Africa’s most populous nation.

To support small and medium sized companies in Nigeria, CDC committed $25 million to Synergy, a local private equity firm. A $100 million-dollar loan was also given to Nigerian fertilizer company, Indorama. O’Donohoe noted that the agency would like to invest more in infrastructure, power, manufacturing and agriculture. He said “we are opening a new office to help originate more transactions in Nigeria”. CDC aims to open a regional office for West Africa in Nigeria’s commercial hub of Lagos early next year and establish a presence in Nairobi, while also expanding in Johannesburg. The Group also plans to establish representative offices in Abidjan and Cairo.