The United Kingdom’s development finance arm, CDC Group Plc have announced plans to invest more than $1 billion into the Nigerian market and $4.5 billion into the African markets in the next four years as the British Government seeks to strengthen business ties with African countries after it leaves the European Union next year.
Nicholas O’Donohole, CDC’s Chief Executive Officer, noted that a reasonable figure has been set aside for investment in Nigeria. The new injection will see it triple its existing African portfolio of around $2.6 billion.
CDC has been active in Nigeria where it has $400 million worth of investment for several years. It has also injected money into some companies directly as equity or debt or through private equity funds. The group has stakes in Diamond Bank, Zenith Bank and GT Bank and according to the CEO, it will probably invest more in Nigeria’s Banking sector. O’Donohole also noted that the group will open offices in Lagos and Nairobi.
The recently negotiated Brexit Withdrawal Agreement by British Prime Minister will see the U.K. Government continue to pay its share of the E.U. budget until it leaves the economic bloc. The deal also includes a 21-month transition period, beginning in March 2019, which could be extended for another year or even longer.
The U.K Prime Minister, Theresa May recently visited some African countries including Nigeria with a promise to make the countries become the G7’s biggest investor on the continent by 2022.