Private Sector-More than USD 1 Billion Projects in 2009

28/05/2010
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The Private Sector Department of the African Development Bank (AfDB) continually develops and finances projects in various areas of infrastructure (energy, transport and communications), as well as supporting operations in the financial and industrial sectors.

Private sector approved operations n 2009 came to UA 1.16 billion, or approximately FCFA 7.5 billion.

They included loans, projects and lines of credit, equity investment, and private guarantees. Private sector approvals represent 14.3% of total AfDB Group approvals for 2009.

In general, project loans have been used to accelerate economic growth and poverty reduction, while the credit lines were designed to strengthen domestic financial markets, promoting the access to finance of small and medium enterprises (SMEs).

By investing in many projects and programs of multinational scope in the form of loans, lines of credit and equity investments, the Bank Group intends to strengthen economic cooperation and regional integration among African countries. The geographical distribution shows that more than half of 2009 private sector operations focused on regional or multinational projects.

The four major projects from the Regional Operations / multinational line of credit to the Liquidity Program for global commerce, Phase I of the Project on the cable system of Main One, Emerging Africa Infrastructure Fund and the equity of Pan African Investment Partners II Limited.

As far as low-income countries were concerned, the two main private sector loans granted were for the Guelbs II SNIM extension project in Mauritania, and the Cocoa Board Phases I and II in Ghana. The Bank also provided lines of credit to United Bank for Africa plc and to Intercontinental Bank PLC, both of which are in Nigeria, among others.

As for middle-income countries, they have benefited from a project loan to develop the Enfidha airport in Tunisia, and a guarantee for Maghreb Leasing Algeria in Algeria.