A slice of the GBP 2 bn pie?
Could Egypt get a slice of CDC’s planned GBP 1.5-2 bn in annual investment between 2022 and 2026? CDC Group, the UK government’s development finance arm, is planning to invest GBP 1.5-2 bn every year between 2022 and 2026 as part of a new strategy announced last week. The lender said it plans to “scale in Africa and … pivot to Asia” during the five-year period, and has earmarked 96 developing and emerging countries as eligible for funding, one of which is Egypt.
Where’s the funding going? The strategy will see CDC investing in “the critical infrastructure that will allow all countries to build back better,” with a particular focus on climate finance and green infrastructure. The new strategy targets channeling 30% of CDC’s investments over the five-year period towards climate finance. The development finance institution also plans to earmark 25% of its commitments under the strategy to gender and diversity finance, “to ensure our investments are inclusive and that the benefits are shared with the more marginalised segments of society.” CDC will also invest in digital transformation efforts across the spectrum, “from large-scale digital infrastructure to early-stage venture capital.”
And there are a few other changes coming to CDC: CDC Group is rebranding to become British International Investment on 4 April, 2022. The institution will also be chaired by Google President of EMEA Partnerships Diana Layfield as of 1 January, 2022, marking the first time CDC Group will be chaired by a woman, the statement said.
DID YOU KNOW? CDC has invested USD 440 mn in Egypt, with 41 companies across a range of sectors receiving funds. The DFI, which has a permanent presence in Egypt, has invested in CIB, been a limited partner in funds raised by our friends at Sawari Ventures and Ezdehar, acquired a big stake in pharma maker Adwia, and provided financing for some 800 MW of capacity in the Benban solar park. More CDC funding is apparently being earmarked for Ain Sokhna Port.
CDC plans to hold an event on 14 December to dive deeper into the details of its strategy (pdf).