CDC Group, the UK’s development finance institution and impact investor, has announced a USD 100 million debt commitment to the Eastern and Southern African Trade and Development Bank (TDB). The investment strengthens TDB’s capacity to provide additional amounts of credit to businesses in need of short-term financing. CDC’s commitment supports the import, export and production of strategic inputs and agricultural commodity goods in the 22 member states where TDB operates, with a strong focus on those economies with the most challenging investment climates.

The facility provides further capital for TDB’s new and existing clients emerging from the economic challenges brought by the COVID-19 crisis. The commitment will provide top-up loans and much-needed capital that safeguards jobs and protects trade in the region. This support comes at a time when access to finance for local companies and importers is more limited across the African continent.

This funding cements a well-established partnership between CDC and TDB. Since 2016, CDC has signed with TDB three loan facilities, and a master risk participation agreement that facilitates trade flows in the region where TDB operates. CDC’s patient capital approach and focus on supporting frontier African markets means it is well suited to support TDB’s development mission.