CDC, the UK’s development finance institution, has announced a new investment designed to support high-growth SMEs in Nigeria. CDC has made a US$15 million commitment to CardinalStone Capital Advisors Growth Fund (“CCA”).

CCA is a first-time, Nigeria-focused fund that targets SMEs across six sectors: agriculture, industrials, FMCG, healthcare, education and financial services. CCA will use CDC’s capital to invest in companies which support job creation, as well as import substitution to diversify the Nigerian economy.

CDC has worked closely with the CardinalStone Capital Advisors team for two and a half years and played a key role in the formation of the fund. CDC is an anchor investor alongside Kuramo, a leading African investment firm, and has helped mobilise additional investment of US$15 million from the Dutch development bank FMO and NSIA (the Nigerian sovereign wealth fund). The fund has reached US$50 million of commitments at first close.