(Ecofin Agency) - British CDC Group agreed to sell the 9.97% interest it holds in Ugandan commercial bank Development Finance Company of Uganda (DFCU) for an undisclosed amount. The British institution that has been investing in DFCU since 1964, when the Ugandan bank was established, sold its shares to the Danish financial institution Investment Fund for Developing Countries (IFU).

“We take this opportunity to express our deep appreciation to CDC which walked this journey with us since 1964. Their commitment and support over the last 55 years has enabled us to make real tangible progress towards the achievement of our vision,” said Elly Karuhanga, the Board Chairman of DFCU Limited.

Over the past six years, CDC Group has gradually reduced its stake in DFCU's capital from a majority 60% to 15% in 2013 and then to less than 10% in 2017.

In its financial statements for the first six months of the financial year ending 30 June 2019, DFCU reported a profit after-tax of 36 billion Ugandan shillings, down the 41.4 billion Ugandan shillings for the same period in 2018. At the end of 2018, profit after-tax was 60.9 billion Ugandan shillings, down 43% from 106.9 billion Ugandan shillings at the end of 2017.

Chamberline Moko