NSIA, CDC Group Seal Deal

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The CDC Group, UK’s publicly-owned impact investor has signed a memorandum of understanding with the Nigeria Sovereign Investment Authority (NSIA). The strategic investment partnership was designed to facilitate long-term inclusive growth and encourage private capital to scale up their participation in high-impact sectors of the Nigerian economy.

The agreement includes information sharing on prospective projects in Nigeria and Africa at large with the ambition to co-invest in sectors such as healthcare, agriculture, infrastructure and climate-resilience. The partnership is expected to foster collaboration on areas of knowledge sharing with an explicit objective of creating jobs and generating impact in Nigeria and across Africa.

“This strengthened partnership builds on the relationship CDC and NSIA have developed since NSIA’s inception, having both invested in Africa-focused private equity funds managed by CardinalStone, Helios and Sahel Capital.

“The announcement builds on CDC’s January 2020 commitment to invest an additional £2 billion in African companies between 2020 and 2022, building on CDC’s 70-year track record of making successful impact-led investments in Africa.

“In line with CDC’s capital partnerships approach, the partnership represents CDC’s broader ambition to accelerate capital mobilisation and accelerate the flow of capital into high-impact sectors in Nigeria.

“NSIA’s $685 million Future Generations Fund invests in a diversified portfolio of asset classes, including private equity and venture capital, in order to provide future generations of Nigerians a savings base in the context of declining domestic oil reserves, mirroring CDC’s long-term commitment to sustainably investing in Nigeria,” a statement explained.

The Chief Executive Officer, CDC Group, Nick O’Donohoe, said the CDC and NSIA have a shared vision and ambition for Nigeria’s large economy, diverse market and exciting entrepreneurial talent.

On his part, the Managing Director/CEO, NSIA, Mr. Uche Orji said: “We are delighted to have signed this agreement with the CDC, with whom we have worked closely for a number of years. CDC’s investment rigour and high environmental, social and governance (ESG) standards, combined with NSIA’s institutional mandate to support the prosperity of future generations of Nigerians, present a powerful opportunity to drive sustained economic development and enhance infrastructure development for the benefit of all Nigerians.”