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Citigroup joins US$200m Africa fund…To develop Africa

By (ghanaian-chronicle)
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US BANK Citigroup has teamed up with private equity group CDC to invest at least US$200 million (£102m) in Africa.

Citigroup will invest US$100 million in its first African private equity fund.

The UK government-owned CDC group, formally called the Commonwealth Development Corporation, will match this amount.

The fund will provide opportunities for Africa's infrastructure, telecoms, manufacturing and energy industries, the CDC said.

“We believe that profitable investments in such areas are fundamental to creating wealth and alleviating poverty in growing economies,” said CDC chief executive Richard Laing.

The investment brings CDC's total funds dedicated to Africa to more than US$830 million.

CDC sold its 8.16% shareholding in CAL Bank to First City Monument Bank (FCMB) in the abortive hostile takeover bid of CAL Bank by FCMB.

CDC is a UK government-owned fund of funds, with net assets of US$2.9bn. it uses its own balance sheet to invest in private equity funds focused on the emerging markets of Asia, Africa and Latin America, with particular emphasis on South Asia and sub-Saharan Africa.

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