CDIH builds the infrastructure for financing African private companies by providing vehicles of venture capital funds.
CDIH advises select rapidly emerging economies on how to best foster entrepreneurial capabilities, develop PPSs and build their SME financing infrastructure to fulfill their full potential in the 21st century.
CDIH leverages the core competencies of developing economies in which we operate to attract investors and trading partners.
CDIH supports export trade in economies with an abundance of commodities by strengthening the local value chain and creating products for export.
Investing in the Future of Africa
A private investment vehicle with a focus on natural resources and strategic commodities in emerging markets, the Co-Development & Investment Holdings is currently engaged in bringing a new wave of American industries to Africa for investments in and financing of private sector development projects to support the growth of Africa’s small and medium-size enterprises and address the needs of its underserved markets. It aims at addressing markets’ dysfunctions where it can bridge inadequate resources allocation and improve value creation along the transformation chain.
By Michael Y. Granger and Louis L. Voiron
We live in a period which can be thought of as hyper-historic. That is to say, there are simply a prolific number of events and processes happening over a short period of time that are significant enough to change the character of the world in fundamental ways.The economic growth and development of Africa is one such phenomenon: the African economies have been growing very strongly prior and since the beginning of this decade, making Africa one of the fastest growing regions in the world. Its GDP growth, approaching double digits, is a testimony to the ascendency of the continent to the status of developing economy. Africa is on that path to its economic destiny.
A number of factors have been driving the continent’s growth. First and foremost is the normal ebb and flow of the various societies in Sub-Sahara Africa. A second and equally significant factor is the new discoveries of natural resources that are more widespread than ever before. Another major phenomenon and one that is global in its effect on underdeveloped economies is the advent of the internet and the rapid development of information and telecommunication technology (ICT) combined with the globalization of business. One of the most profound phenomena driving Africa’s growth are the massive investments in infrastructure on the continent being undertaken by China, which has created the infrastructural platform underpinning Africa’s growth. This change is preparing Africa to cope with even greater changes in its societies, yet unknown, which will be driven by the most compelling demographics on the planet.
In fact, Africa is at an inflection point in its history. It is at a place it has never been before and one that has profound implications for the world writ large. That inflection point marks the transition of the continent from predominantly aid dependent societies to ones on the receiving end of direct foreign investment (DFI). In 2010, for the first time in the history of the continent, DFI exceeded aid.The industries receiving these investments have vastly diversified whilst the number of countries receiving significant amounts of DFI has been rising over the past decade. Despite further effects of tighter monetary policies to be anticipated on emerging markets, this trend is unlikely to lose pace in the future as the continent is now considered the second most attractive region for investment in the world.
Most African economies have created an informal venture capital culture, largely based on individual and family businesses that have been self and bank-financed, not unlike pre-World War II United States when wealthy families singularly constituted the venture capital industry. Alone neither microcredit nor large-scale publicly funded infrastructure projects are to put Africa on the tracks of sustained development. For Africa to remain durably on this virtuous curve, private equity is required as it will provide early stage and expansion financing to new companies with high growth potential. These companies do not qualify for bank loans, but they need venture capital and the assistance of professionals who can help them negotiate the sometimes fatal hurdles that plague entrepreneurial companies.
A new U.S.-backed policy initiative, the Co-Development & Investment Consortium (CDIC) has taken on the task of facilitating a response to help meet these challenges. This private sector initiative is breaking new ground in proactively addressing opportunities on the continent. Cooperation is the watch word in this new era, and CDIC is leading the charge by bringing its trademark transatlantic alliance to create mutually beneficial opportunities and outcomes, and the right institutional linkages to enhance the continent's economic development. CDIC has been identifying opportunities on the ground in various African countries and bringing the tools and resources to build sustainable businesses around them. As African entrepreneurs need capital and professional expertise to assist them in realizing their dreams, CDIC has also been engaged in bringing a new wave of American industries to Africa for investments in and financing of private sector development projects to support the growth of its small and medium-size enterprises and address the needs of its underserved markets.
Throughout this journey, we desire to be honest partners for Africa, passionate about forging an effective and mutually beneficial relationship with a number of stable and aspirational African countries and contributing to delivering growth and opportunities for their populations. At CDIH we call Africa our “New Frontier.” For all of us, whether in Africa, in Europe or in North America, this is an exciting prospect and quite certainly one of the few historic opportunities one is presented in a lifetime. We would feel a certain privilege if we could be part of this fascinating and storied journey, unleash initiatives and direct impact investment to make a difference for Africa and build a brighter future for its people.