- Forms a key pillar of CDC’s response to COVID-19
- Brings total trade finance commitments with Absa to US$300 million
- Financial backing to support supply chains in vital food & agriculture and healthcare sectors
CDC Group, the UK’s development finance institution and impact investor, has announced a new two-year revolving US$50 million trade finance loan facility to Absa bank.
The loan forms part of CDC’s response to COVID-19 and follows an additional US$75 million investment made in July, into its existing facility with the bank.
The investments form part of the ‘Strengthen’ pillar of CDC’s COVID-19 response and will provide systemic liquidity to banks across Africa, supporting them to provide trade finance and helping to maintain the stability of supply chains during the crisis.
The pandemic has put significant pressure on African banks as international banks continue to withdraw from the continent and reduce their correspondent banking relationships in developing economies. Counter-cyclical commitments from development finance institutions like CDC, are critical to mitigating the lack of capital and maintaining trade flows.
This latest commitment advances CDC’s goal to help bridge the gap in Africa’s trade finance deficit – estimated by the International Chamber of Commerce to represent about 25 per cent of the demand for trade finance in Africa.
In addition to strengthening the response to COVID-19 across Africa, CDC’s latest commitment to Absa contributes to the United Nations’ Sustainable Development Goals (SDGs) on Zero Hunger (SDG 2), and Decent Work And Economic Growth (SDG 8).
ENDS
Media Contact:
CDC: Toyosi Adebayo / M. +44 (0) 7880 372 305
About CDC
- CDC Group is the UK’s first impact investor with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.
- CDC is a leading player in the fight against climate change and a UK champion of the UN’s Sustainable Development Goals – the global blueprint to achieve a better and more sustainable future for us all.
- The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8bn. This year CDC will invest over $1.5bn in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.
- CDC is funded by the UK government and all proceeds from its investments are reinvested to improve the lives of millions of people in Africa and South Asia.
- CDC’s expertise makes it the perfect partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.
