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CDC sells its stake in dfcu Bank
KAMPALA-The United Kingdom’s Development Finance Institution (CDC) has sold all its shares of 9.97 per cent in dfcu to Investment Fund for Developing Countries (IFU) of Denmark.
The UK based financial institution which has been operating in Uganda since 1964 said it will continue doing business in Uganda despite selling off all its shares.
Speaking at Uganda Securities Exchange (USE) headquarters at Nakawa Business Park, Ms Ceema Dhanani said: “CDC is actively looking for new investment opportunities in the country to build upon its $120 million portfolio. Those businesses backed by CDC’s capital which include Bujagali Hydropower have an important impact on the country’s economy, supporting almost 3,000 direct jobs and paying $7.4 million in taxes to the Uganda government exchequer last year.”
The IFU - Investment Fund for Developing Countries is an independent government-owned development finance institution by Denmark government.
The Investment Fund for Developing Countries, or IFU from its Danish initials, provides risk capital and advice to companies wanting to do business in Africa, Asia, Latin America and parts of Europe. The purpose is to contribute to economic and social development in the investment countries.
Dfcu Limited’s board of directors chairman, Mr Elly Karuhanga said CDC as a parent company of dfcu, has an anchor for dfcu’s strength in providing financial services in Uganda.
“They used to have all the shareholding before, however, it started divesting its shares in 2013,” he said.
Mr Karuhanga who looked said: “dfcu has made significant contribution to the economic development and transformation of Uganda, over the last 55 years because among others, our strong shareholders. With IFU as one of the shareholders, we are confident that dfcu is well on track to achieving its vision of being the preferred financial institution in Uganda.”
He said that ever since its first investment in Uganda 1in 1949, CDC has been a committed supporter to the country’s private sector and will maintain the position after it’s exit from dfcu.
