British International Investment
19 December 2019

CDC concludes its pioneering six decade long partnership with DFCU bank with sale of stake to fellow development finance institution

CDC Group, the UK’s development finance institution, has today announced its decision to sell its remaining 9.97% stake in dfcu Limited (“DFCU”).

The shareholding is being sold to IFU, the Danish development finance institution.

CDC made its first investment in DFCU in 1964 as a founding partner to the bank and has played an integral role in its long-term growth over the last six decades, through a number of equity and debt funding rounds.

In that period DFCU has grown to become a major player in the Ugandan banking sector, a champion of SMEs and a committed supporter of financial inclusion and female entrepreneurship through a Women in Business programme created by CDC.

CDC has been reducing its stake in DFCU over the last six years – from 60% to 15% in 2013 and then to just under 10% in 2017 following a rights issue at the bank.

CDC’s Chief Executive, Nick O’Donohoe said:

“Our partnership with DFCU has perfectly demonstrated our credentials as a provider of patient capital. And I am delighted that in IFU, we are passing the baton to a like-minded investor that, alongside Arise, the largest existing shareholder in DFCU, will be as equally committed to DFCU’s long-term stability and success.”

“DFCU is now a stalwart of the Ugandan economy so we felt it was the appropriate time to deploy our capital elsewhere. Uganda is an incredibly important country for CDC and we look forward to the opportunity to reinvest the proceeds from the sale of our DFCU stake into other businesses here.”

IFU´s Chief Executive Officer, Torben Huss said: “IFU is pleased to become a shareholder in DFCU as we share the ambition to expand access to financial services, which will lead to productive investments, the creation of decent jobs and improve people’s welfare. Moreover, we see this acquisition as a strategic step to increase our engagement in the private sector in Uganda and further promote the Sustainable Development Goals.

Elly Karuhanga, the Board Chairman of dfcu Limited said: “dfcu has made a significant contribution to the economic development and transformation of Uganda, over the last 55 years because of 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. We take this opportunity to express our deep appreciation to CDC who have 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. We look forward to continued collaboration with CDC in other areas in the future.”

Ever since its first investment in Uganda in 1949, CDC has been a committed supporter of the country’s private sector and will remain so after its exit from DFCU.

CDC is actively looking for new investment opportunities in the country to build upon its US$120 million portfolio of 35 businesses. Those business backed by CDC’s capital – which include Bujagali Hydropower – have an important impact on the country’s economy, supporting almost 3000 direct jobs and paying US$7.4 million in taxes to the Ugandan exchequer last year.



Media Contact:

Andrew Murray-Watson, CDC group, +44 207 042 1569 / [email protected]

George Ochom, dfcu Limited, +256 31 2 300 329/[email protected]

Morten Elkjær, IFU, +45 33 44 12 36 / [email protected]

Henrik Frøsig, IFU, +45 33 63 75 23 / [email protected]


Notes to Editors:

About CDC Group

  1. CDC Group plc is the UK’s development finance institution, wholly owned by the UK Government, CDC has invested in Africa and Asia for 70 years. By investing for impact, CDC aims to help countries in Africa and Asia to build thriving communities that provide sustainable opportunities for all citizens.
  2. CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact.  CDC has net assets of £5.8bn. Find out more at


About IFU

IFU, is the Danish Investment Fund for Developing Countries offering risk capital and advisory services to companies in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of share capital, loans and guarantees. The purpose is to promote economic and social progress in the investment countries.


To further support the UN Sustainable Development Goals, IFU has in collaboration with several Danish pension funds and institutional investors set up the Danish SDG Investment Fund with a total capital commitment of EUR 650 million.


In total IFU has been engaged in close to 1,300 investments covering more than 100 developing countries. Total capital under management is EUR 1.5 billion.


For more information please visit



About dfcu


  1. dfcu Limited was established in 1964 as a development finance institution. Over the years dfcu has been associated with many success stories in Uganda’s economy in various sectors including agribusiness, communication, education, health, manufacturing, tourism, real estate, mining, construction, transport, trade and commerce, among others.


  1. In 2000, dfcu Limited diversified into commercial banking through its subsidiary dfcu Bank.


  1. dfcu Limited is incorporated in Uganda as a limited liability company, domiciled in Uganda and listed on listed on the Uganda Securities Exchange.


For more information visit and






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