Last week,Commonwealth DevelopmentCorporation(CDC Group) committed to two investments in sub Saharan Africa.

CDC Group will support, with a $9 million loan, the project of Virunga Power to produce 50 MW of hydropower and improve its distribution network for surrounding communities in DR Congo. British Minister for International Development, Nick Hurd, said the commitment emerged from populations’ need for affordable electricity, for a better education for children, but also for an economic environment which favors the development of British investments in DR Congo.

In Kenya, the British institution acquired the shares of DEG and Proparco in I&M Holdings, a Kenyan bank with a large footprint in Eastern Africa. No detail was given regarding the proposed sum but given the actual price of I&M share on the Nairobi Securities Exchange, at least Sh4.5 billion ($44.5 million) should be spent to get the 10.68% stake concerned.

CDC Group said it invested because it wanted to take advantage of a sub region which has a GDP of $145 billion and keeps growing, also that has one of Africa’s most advanced integration process. More technically, I&M Holdings presents an interesting investment profile. Its market value fell to Sh39.23 billion at December 31, 2015. Since then, it climbed back to Sh42 billion at present.

In 2015, financial results of the company also improved. It recorded a net profit of Sh7.14 billion, up 36% compared to 2014. Also, the firm offered a dividend of Sh3.5 against Sh2.9 in March 2015.

Both DEG and Proparco acquired minority stakes in the firm, 3.1 million and 2.7 million shares respectively, during Q4 2012. At the time, the share was valued at Sh95. At the end of the fourth quarter of 2014, the two firms respectively saw their volumes of shares increase to 24.5 million and 17.4 million. Share value was Sh135, slumping to Sh125. Since then, I&M Holdings continued plunging till it reached Sh125 on December 31, 2015. Now, benefit obtained will thus depend on CDC’s offer. I&M Holding started the week with a 1.9% hike on the Kenyan financial market.

Idriss Linge