The UK, other G7 countries and multilateral partners are set to invest $80 billion in the private sector across Africa.
The investment is aimed at creating jobs, boosting economic growth, help tackle climate change, and fight poverty development goals of African economies.
The investment is set to be rolled out over the next five years and will see the G7 Development Finance Institutions (DFIs), including the UK’s CDC Group, support sustainable economic recovery and growth in Africa.
“The UK is proud to back this commitment by world leaders at the G7 Summit to invest more than $80 billion in Africa’s private sector over the next 5 years. This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by COVID-19”. UK’s Minister for Africa James Duddridge.
The investments in Africa will be drawn from existing capital and will focus on renewable power, infrastructure, manufacturing, agriculture, and technology. These investments will collectively provide clean, reliable power to millions of people, give underserved markets better access to finance.
At the start of 2021, UK based development finance institution CDC Group unveiled a plan to invest $1 billion in key markets in Africa, including Egypt, Ethiopia, Kenya, and Nigeria.
“The patient, high quality capital that DFIs provide is urgently needed if African economies are to start to rebuild quickly from the impact of the pandemic . CDC is committed to building long term investment partnerships in Africa that fuel sustainable private sector growth in support of the UN’s Sustainable Development Goals.” Nick O’Donohoe, CEO of CDC Group.
Other investors include the World Bank’s International Finance Corporation, the African Development Bank, the European Investment Bank, and the European Bank for Reconstruction and Development.