CDC Group taking steps to help Africa’s Agric and food sector close the funding gap

The CDC Group, the UK government’s development investment arm, is taking steps to help Africa’s agriculture and food industry close a funding gap that it estimates is worth up to $31 billion per year. Via its export and trading firm, ETG, the 73-year-old institution is channelling $100 million to small-holder African farmers, and it is looking for other partners to help it deploy more resources to the market. According to CDC’s spokesperson and investment director, Brad Smith, as banks withdraw funding from agriculture due to regulatory issues and some larger players default, institutions like CDC have a major role to play in filling the gap. “This is the biggest deal we have done in the corporate debt space,” he said. The agreement enables CDC to reach more than half a million farmers across 29 sub-Saharan African nations, from Mozambique and Tanzania to Kenya. The funding will target the least developed markets where ETG operates and be deployed to provide farmers with ...