CDC Group has signed a memorandum of understanding with the Nigeria Sovereign Investment Authority (NSIA) 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 will 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 £2bn 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 $685m 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.

Nick O’Donohoe, Chief Executive Officer, CDC Group said: “CDC and NSIA have a shared vision and ambition for Nigeria’s large economy, diverse market and exciting entrepreneurial talent. This partnership demonstrates CDC’s continued motivation to act at scale and actively expand our presence and portfolio in Nigeria, and we are confident that our strengthened relationship will unlock new investment opportunities in sectors that promote human capital development and accelerate economic growth and job creation.”

“Our collaboration with NSIA is more vital than ever before, as CDC’s key priority for the country is to support Nigeria to build back better, a more resilient economy beyond the COVID-19 crisis.”

Uche Orji, Managing Director and CEO, NSIA, added: “We are delighted to have signed this agreement with 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.”