UK-based CDC Capital Partners have taken a controlling interest in dfcu Bank
UK-based CDC Capital Partners have taken a controlling interest in dfcu Bank.
Michael Turner, the CDC's East Africa Director said in a press release yesterday, â€œThe Ugandan economy is notably under-banked and there is outstanding growth potential.â€
CDC Partners bought a further 25% shareholding in dfcu Bank from the German investor DEG. CDC now own 60% of the business which they helped co-found with the Government nearly 40 years ago.
GED's Karl-Heinz Niessen said his company's policy was to exit investments after a certain period to make funds available for new projects.
â€œWe are looking for new opportunities in Uganda and are currently helping to finance Uganda's second national telephone network".
Recently, CDC have played a more active role, providing strategic leadership through a place on the Board.
DFCU's assets have grown on average by more than 40 per cent annually over the past three years.
Dr William Kalema, the dfcu Bank chairman, said: â€œHaving a strong controlling shareholder will improve our credit rating in capital markets and further strengthen the confidence of employees and customers."
Holdings in the bank are now CDC 60%; IFC 21.5% and Government, 18.5%.
CDC Partners, which evolved from the formerCommonwealth Development Corporation, is a leading risk capital investor in emerging markets. It now manages a portfolio of $1.5b in businesses across Africa, Latin America and Asia.
UK firm takes over dfcu Bank