ADF approves $149m for private sector
The African Development Fund (ADF), the concessional window of the African Development Bank Group, has approved $149 million credit risk participations in seven loans under its Private Sector Credit Enhancement Facility (PSF).
Launched in 2015 by the ADF, the PSF provides credit risk participa-tions in private sector operations of the African Development Bank in low-income countries, and is on its way to building a $1.5 billion portfolio of exposures.
A statement from the bank said seven operations include senior loans targeting renewable energy and agroindustry sectors in Uganda, Sudan, and Cameroun among others, as well as lines of credit to lenders in Liberia and Mali.
“These approved operations bring the facility’s total portfolio to over 40 per cent of its $1.5 billion target size and increase the PSF’s footprint to 29 countries. They deliver on our mandate to contribute to development impact through enabling additional financing of private sector projects in low-income countries.”, says PSF Administrator, Cecile Ambert.
The operations were prioritised in light of their superior expected development results and additiona-lity; particularly in terms of increased access to electricity, food security, and job creation.
The African Development Fund (ADF) is the concessional window of the African Development Bank (AfDB) Group. Established in 1972, it became operational in 1974. Administered by the African Development Bank, it comprises, to date, 32 contributing countries and benefits 38 countries.
The 38 ADF-eligible countries include those that are increasing their economic capacities and heading toward becoming the new emerging markets—as well as those that remain fragile and need special assistance for basic levels of service delivery. The ADF has the challenge of having nearly half its client countries as fragile states, and facing a situation where even stable economies can become fragile due to a single internal or external shock.
The ADF contributes to poverty reduction and economic and social development in the least developed African countries by providing concessional funding for projects and programs, as well as technical assistance for studies and capacity-building activities. The Fund has cumulatively invested UA 29.4 billion (USD 45 billion) over its 44 years of operationalization on the African continent.
The Fund’s resources are replenished every three years by its donor countries. In the replenishment discussions, the donor countries are represented by their ADF Deputies.