CDC, the UK’s development finance institution, will form a partnership with a Pan African Bank to deepen penetration of banking services and promote financial inclusion for all. We believe that investing in financial institutions is a powerful mechanism through which CDC can deliver impact at scale.
Today we announce our commitment to invest in BMCE Bank of Africa (“BMCE”, the “Bank”), a Pan African bank that serves over 20 countries on the Continent. This investment aims to form a long-term partnership between CDC and BMCE, with the ambition of contributing to the economic development of Africa. It is head quartered in Morocco and reaches some of Africa’s most challenged countries such as Burkina Faso and Madagascar.
Banking penetration and access to finance in the majority of BMCE’s operating countries, such as in Benin and Niger, remains disproportionately low. Restricted access to finance stifles the prosperity of families, communities and economies in Africa. To invest in family homes, engage in education, support their community and grow their own businesses, people need access to affordable financial products and services. Access to growth finance strengthens economic development as SMEs, which constitute the backbone of Africa’s economy, are a key driver of economic growth.
CDC’s Chief Executive, Nick O’Donohoe said, “CDC invests in financial institutions as a powerful mechanism through which to can deliver impact at scale. The capital markets in countries such as Morocco are integrated across Africa and are critical to the success of more economically challenged environments in the region. We see these countries as regional hubs, strong platforms from which to provide affordable finance, goods and services to millions more people.”
We will invest US$ 200 million and hold a c. 5% stake in the Bank. Our investment will help BMCE to grow its offering, especially in the SME segment, deepen penetration of banking services and promote financial inclusion across the Continent.
Completion of the transaction is subject to customary conditions.
Clare Murray, Investment Marketing & PR Manager
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Notes to Editors:
- CDC Group plc is the UK’s development finance institution. Wholly owned by the UK Government, it invests in Africa and South Asia with the aim of supporting economic development to create jobs. CDC Group plc has invested in Africa since its establishment in 1948. Find out more at cdcgroup.com
- CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £5.1 billion.