This archive report was first published on 25 October 2019.
On October 25, 2019, CDC Group, the UK's development finance institution and impact investor, made a significant commitment to lending $75 million in a risk-sharing facility to the Absa Group, one of Africa's largest financial services companies.
This substantial trade commitment aims to enable African businesses to benefit from and take advantage of available trade opportunities.
Many international banks have undergone the derisking process, leading to a decrease in the flow of currency to African banks that lend to local businesses. This has resulted in a negative impact on the corresponding banking relationship across Africa and weakened the trade sector.
The risk facility will enable the Absa Group to increase its lines of credit to other banks across Africa, thereby increasing trade offerings to many local businesses.
Supporting trade in Africa is a key way to reduce poverty, and accessing financing has been a significant challenge. The trade commitment will help close the trade finance gap in Africa.
As a development finance institution owned by the UK government, CDC Group has focused on emerging markets in South Asia and Africa since 2011.
