G7 countries and multilateral partners have reportedly pledged an $80 billion investment in the private sector of the African continent. This investment would supposedly roll out over the coming five years.
Through this commitment, the G7 Development Finance Institutions (DFIs), with UK’s CDC Group, plan to support sustainable economic recovery and growth across the region, reports suggest. Other investors include the African Development Bank, the European Investment Bank, World Bank’s International Finance Corporation, and the European Bank for Reconstruction and Development.
As per reports, these investments have been aimed at supporting long-term development goals of Africa economies, including those that have been adversely impacted by the COVID-19 pandemic. Evidently, this announcement marks the first time G7 DFIs have joined forces to initiate a collective partnership commitment towards Africa.
The G7 DFI group includes Proparco (France), CDC (UK), DEG (Germany), DFC (US), JICA and JBIC (Japan), FinDev Canada (Canada), and CDP (Italy).
CDC Group, the UK government-owned development finance institution, invests in private sector businesses in South Asia and Africa to promote positive social, economic, and environmental change, according to reports.
The UK’s investments in Africa through the next five years would apparently be derived from existing capital and emphasize on agriculture, infrastructure, renewable power, manufacturing, and technology sectors, claim reliable sources.
These investments would reportedly offer millions of people clean and reliable power supply, help generate employment opportunities as well as reduce poverty, and provide underserved markets better access to finance.
James Duddridge, Minister of Africa, stated that the investment comes at a crucial time while the continent has been working on rebuilding its economies that have been severely hit by the COVID-19 pandemic.
Previous investments by the CDC Group have apparently provided power through solar panel technology to more than 9.9 million people across East Africa. Additionally, these investments have also contributed to above 40% of the installed electricity capacity in Benin, Kenya, and Uganda, and added fibre optic cabling upwards of 18,000 km from Cairo to Cap Town.