ABSA Group Limited

Africa Financial services

Absa Bank Limited (Absa) is one of Africa’s largest diversified financial services groups.

Our investment

CDC’s facility will support Absa to increase its lines of credit to other banks across Africa. Subsequently, these banks can increase their trade finance offering to thousands of local business clients. This facility will also enable Absa to expand its network of local banks, particularly into the harder to reach African markets where trade finance will help fuel economic prosperity.

Expected impact

Trade finance plays a key role in Absa’s strategy to become a leading pan-African bank. CDC's commitment boosts the bank's financial commitment to drive African trade and practically support local banks, businesses, SMEs and entrepreneurs – the real source of GDP growth and developmental transformation of African economies. This is a major step in turning back the tide of African de-risking that has starved the continent of trade finance.

Environmental and social aspects

CDC worked with Absa to ensure that E&S standards (CDCs exclusion list) are applied to trades that are implemented under the facility in line with DFI approaches to trade facilities

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Countries:
Pan- African
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Financial services
Website:
https://www.absa.africa
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Trade Finance
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
October 2019
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$175m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
South Africa