The CDC Group has announced plans to invest over Ksh. 452 billion (£3 billion) to support emerging economies in Africa and Asia to combat the climate emergency.
The Group said the funds will be invested over the next five years across renewable power, infrastructure and agriculture sectors. The group will also increase venture capital investment in early-stage for technology-based businesses that have the potential to play vital roles in the fight against climate change.
This is in addition to the Ksh. 30 billion (£200 million) Climate Innovation Facility announcement by the UK Government at COP26. The fund has been set up to provide finance for the most pioneering climate solutions in developing countries.
This is double the amount of climate finance CDC invested in 2017-2021.
Nick O’Donohoe, CEO of CDC noted that the new commitments would make CDC a global leader in climate finance in Africa and South Asia.
He added, “COP is about making specific commitments to act, and this is demonstrated by a doubling of our financial support to those countries most vulnerable to the ravages of the climate emergency.”
Beneficiaries for the pledged investment include the following.
1. Pula, a Kenya based agritech business. The funds will help it to pilot a new “Pay-at-Harvest” insurance product, something which is virtually untested in Africa but has the potential to significantly increase smallholder uptake of insurance, delivering both development and climate impacts.
2. Ksh. 7.8 billion ($70 million) investment in the Green Growth Equity Fund, India’s first dedicated climate finance fund, to make investments in a further six to eight innovative companies
3. Ksh. 3 billion ($28 million) investment in Atlas Solar, the Pakistan solar power company, for a project that will generate 100MW of renewable energy
4. Ksh. 4.2 billion ($37 million) investment in Africa Renewable Energy Fund II, a fund that invests in small hydro, wind, geothermal and solar projects across sub-Saharan Africa
5. Ksh. 1.1 billion ($10 million) of follow up investment in M-Kopa, the Kenyan off-grid solar company that provides vital power for homes and communities in rural locations
6. Ksh. 1.6 billion ($14 million) invested in Leap India Food and Logistics, an agri-warehousing and logistics company based in India