- G7 countries plan to invest $80 billion over the next 5 years.
- The investment will focus on renewable power, infrastructure, manufacturing, agriculture and technology sectors.
- This marks the first time the G7 and DFIs have made a collective commitment to funding for Africa.
The G7 countries and multilateral partners have announced an $80 billion commitment to invest in the private sector across Africa. This investment will be done over the next 5 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 investments will support the long-term development objectives of African economies, including countries that the COVID-19 pandemic has severely impacted.
The UK’s investments in the continent 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, and help create jobs and reduce poverty.
Minister for Africa James Duddridge said, “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.”
Nick O’Donohoe, CEO of CDC Group, said, “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.”
The G7 DFI group consists of CDC (UK), Proparco (France), JICA and JBIC (Japan), DFC (US), FinDev Canada (Canada), DEG (Germany) and CDP (Italy). This commitment is also supported by the World Bank’s International Finance Corporation, the African Development Bank, the European Bank for Reconstruction and Development and the European Investment Bank.