KENYA – CDC Group, the UK’s development finance institution and impact investor, has announced a US$100 million debt commitment to the Eastern and Southern African Trade and Development Bank (TDB), an investment that 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 with the support coming at a time when access to finance for local companies and importers is more limited across the African continent.
“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”Tenbite Ernias – Managing Director, CDC Group
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 on Decent Work and Economic Growth.
“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,” said Admassu Tadesse, TDB President and CEO.
On his part, Tenbite Ermias, Managing Director CDC, said that they are delighted to strengthen their 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 committedto,” said Tenbite Ermias.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE