- CDC Group (“CDC”), the UK’s development finance institution (DFI), met His Excellency Hakainde Hichilema President of the Republic of Zambia at COP26 in Glasgow, UK
- The meeting reiterated CDC’s commitment to investing in Zambia, supporting the country’s economic, environmental, and social prosperity
- CDC has been investing in Zambia for over 70 years and will continue to use its patient capital to partner with impact led entrepreneurs and businesses in the country
On Wednesday 3rd November President Hichilema of Zambia met with Sir Graham Wrigley, Chairman of CDC, Nick O’Donohoe CEO of CDC, and Dolika Banda, a Non-Executive Director at CDC. The meeting underscored a joint commitment by the Government of Zambia and CDC, to continue strengthening their partnership and further collaborate to bolster growth, driving the country’s inclusive and sustainable economic future.
Held during the UN Climate Change Conference (COP26), in Glasgow Scotland, President Hichilema and the senior CDC delegation had a progressive discussion about boosting investment in Zambia, including in climate-related projects.
Demonstrating CDC’s commitment to Zambia, the DFI has announced its support for the Green Growth Compact (“Compact”), as part of the cooperation framework signed today between the UK Government and the Government of Zambia. The Compact outlines the countries’ joint objective to build a stronger, more diversified and inclusive Zambian economy. The agreement will support Zambia in following a green development pathway contributing to global emission reductions whilst protecting Zambia’s unique biodiversity for future generations, alongside building economic prosperity. Within five years, the Compact hopes to achieve many positives including facilitating £100 million new financing for Zambian small and mid-size enterprises (SMEs), increasing UK Foreign Direct Investment in Zambia by £1 billion and enabling 500MW of new renewable energy generation capacity in the country.
CDC’s investments in Zambia currently support over 6000 jobs and provide a range of services from critical fibre infrastructure and internet access, to microfinance lending. In September 2021, CDC allocated a new $20 million trade finance facility which five banks in Zambia are now able to draw on to boost trade. This will be followed by other longer-term investments in financial services, energy, food and agriculture and SME development in line with the Government of Zambia’s economic vision.
Dolika Banda, a Non-Executive Director at CDC said: “Zambia and CDC share a special history. We are proud to have supported over the decades, from establishing Chilanga Cement to helping fund Kariba Dam, through to our investment in Zambeef today. Throughout over 70 years of partnership with Zambia, we have continuously sought opportunities to direct our patient and flexible capital to uplift key industries that have the potential to transform the entire economy. Against the backdrop of the urgent environmental challenge, CDC reaffirms a commitment to deepen our relationship with Zambia and support the country’s development plans through investments that keep climate and inclusive growth at their core.”
Media contacts
CDC: Clare Murray – cmurray@bii.co.uk
