CDC Group, the UK’s development finance institution and impact investor, has announced a USD 100 million debt commitment to the Eastern and Southern African Trade and Development Bank (TDB). The investment strengthens TDB’s capacity to provide additional amounts of credit to businesses in need of short-term financing. CDC’s commitment supports the import, export and production of strategic inputs and agricultural commodity goods in the 22 member states where TDB operates, with a strong focus on those economies with the most challenging investment climates.
The facility provides further capital for TDB’s new and existing clients emerging from the economic challenges brought by the COVID-19 crisis. The commitment will provide top-up loans and much-needed capital that safeguards jobs and protects trade in the region. This support comes at a time when access to finance for local companies and importers is more limited across the African continent.
This funding cements a well-established partnership between CDC and TDB. Since 2016, CDC has signed with TDB three loan facilities, and a master risk participation agreement that facilitates trade flows in the region where TDB operates. CDC’s patient capital approach and focus on supporting frontier African markets means it is well suited to support TDB’s development mission.
This investment contributes to the United Nations Sustainable Development Goal 8 (Decent Work and Economic Growth).
Admassu Tadesse, TDB President and CEO, said:
“CDC has become one of TDB’s important funding and risk sharing partners, thanks to the various financing agreements which have implemented over the years to drive triple bottom-line impact in the region we serve. This short-term financing facility will foster business continuity, and support our build-back-better agenda via which we shall continue to intensify our commitment to development finance flows and SDGs, the Paris Agreement and Agenda 2063.”
Tenbite Ermias, Managing Director CDC, said:
“We are delighted to strengthen our partnership with TDB to support vital trade and investment in Eastern and Southern Africa. Protecting trade is central to accelerating the economic recovery from COVID-19, maintaining livelihoods and facilitating inclusive growth. As a development finance institution, it is our role to provide capital in constrained markets, helping to support the economic and social development of the communities we remain committed to.”
About CDC
1. CDC partners with both international and local banks to boost levels of trade finance to their clients. The company focuses on countries where raising capital is a challenge which stagnates economic prosperity. CDC is playing a key role in closing the trade finance gap in Africa.
2. CDC Group is the UK’s impact investor and development finance institution with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.
3. 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.
4. 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.
5. 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.
6. 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.
About the Eastern and South African Trade and Development Bank
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based, investment-grade development finance institution, with 40 sovereign and institutional shareholders and assets of USD 6.7 bn. TDB serves 22 economies in its region, with the mandate to finance and foster trade, regional economic integration and sustainable development.
www.tdbgroup.org
Media Contacts
For CDC:
Emmanuel Balogun
ebalogun@africapractice.com
For TDB:
Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Anne-Marie.Iskandar@tdbgroup.org
