Britain pours tens of millions of aid money into middle-class hotels and coffee shops

Britain is ploughing tens of millions of taxpayer money into middle-class ventures under the guise of foreign aid, it has been revealed. 

Five-star hotels, artisan pizza diners and an Indian celebrity chef’s cookware line have all benefited from investment by the CDC Group, a government-owned institution.

Under the umbrella of the International Development department, the CDC Group is supposed to fund projects which help raise standards in the ‘world’s poorest places’.

But an investigation has shone a spotlight on eye-watering amounts of investment made to companies selling high-end products. 

Information on the CDC Group website shows it has poured almost £43million into African hotel chain Onomo since 2017.

Onomo has a stable of 20 three to four-star hotels across the continent that cater for guests on international businesses. 

One of the most eye-raising CDC investments was made to Wonderchef, a ‘premium cookware’ company founded by Indian television chef Sanjeev Kapoor (pictured)

It also invested into hotel chain Azalai which the CDC’s own website made clear owns five-star hotels (The Bamako in Mali pictured)

It also invested into hotel chain Azalai which the CDC’s own website made clear owns five-star hotels.

CDC typically pumps money into investment companies, in this case, Tunisian financial services company AfricInvest, which it has given £25million since 2014, which then funds local projects.

It is unclear on the CDC website how much of the money given to AfricInvest filtered down to Azalai hotels.

One of the most eyebrow-raising CDC investments was made to Wonderchef, a ‘premium cookware’ company founded by Indian television chef Sanjeev Kapoor.

The company bills itself as the ‘finest Cookware & Appliances brand, especially crafted by Chef Sanjeev Kapoo’ and specialise in seemingly middle-class items such as nutri blends which retail at £39.99

Yet they are listed on the CDC website as recipients of UK government-funded investment through Amicus Capital Partners private equity firm, which received £20million in December 2016. 

CDC made the investment through Tunisian financial services company AfricInvest, which it has given £25million since 2014 – it is unclear how much of this money filtered down to Azalai hotels (Azalai hotel in Cote d’Ivoire pictured)

Java House, which ‘operates casual dining retail brands in Kenya’ and sells ‘frozen yoghurt and 360 Degrees Artisan Pizza’ is also named as a recipient. 

The coffee chain received investment from Cayman Islands-headquarted fund managers Actis LLP which received £40million from the CDC.

Development campaigners blasted the investments, which was first reported by The Times, as a colossal misuse of public funds.

Daniel Willis of Global Justice Now told the newspaper: ‘It’s a betrayal of the whole point of aid, which is to help end poverty, not support luxury businesses.

He added: ‘The evidence that these investments are effective at tackling poverty is absolutely minimal.’

Java House, which ‘operates casual dining retail brands in Kenya’ and sells ‘frozen yoghurt and 360 Degrees Artisan Pizza’ is also named as a recipient

The CDC, which commands assets of over £6billion claims it prioritises investment based on the possibility of job-creation in the poorest places in the world.

Its website states: ‘Our investment teams include product and sector specialists who look for businesses with the greatest potential for impact, whether through their ability to grow and create jobs, to address a lack of enabling infrastructure, to increase efficiency, or to increase opportunities for the poorer parts of society.’ 

Over half its 294 staff are paid more than £100,000 and its chief executive earned £342,200, according to the Times.   

A spokesman stressed that: ‘Every single investment we now make is subject to a comprehensive and systematic assessment of its expected impact.’