Grindrod

Southern Africa,Africa Infrastructure

Grindrod is a ports and logistics company based in South Africa; the company also has interests in the financial services sector.

Listed on the Johannesburg Stock Exchange, it operates in 32 countries worldwide, employing more than 5,500 skilled people through subsidiaries and joint ventures.

It has two divisions: freight services and financial services.

Our investment

In 2014, CDC invested $16.6 million in Grindrod, providing finance for the company’s project development pipeline, which includes ports in Mozambique and South Africa and a 590km freight railway between Zambia and Zimbabwe.

Expected impact

Regional trade has an important role to play in long-term growth in Africa, especially since many African economies are not large enough to build strong internal markets.

Yet intra-African trade levels are very low, representing only 16 per cent of Africa’s overall trade. This is compounded by under-developed and costly transport infrastructure – 26 per cent of firms in sub-Saharan Africa identify transportation as a major infrastructure constraint.

Our partnership with Grindrod helps to develop and improve ports and logistics infrastructure across sub-Saharan Africa to reduce transport costs, increase cross-border flows of goods and push forward regional economic growth.

Environmental and social aspects

We support Grindrod in strengthening and consolidating its corporate-level environmental and social standards, and help to ensure their consistent implementation across the company’s geographies.

As part of the above, we facilitate internal discussions and deliver training on the implementation of international environmental and social standards.

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, Southern Africa
Countries:
South Africa
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.

:
Infrastructure
Website:
http://www.grindrod.co.za/
Investment type

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

:
Direct Equity
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

:
May 2014
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.

:
$16.6m
Domicile

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

:
South Africa