Fund for African Private Sector Assistance
- Date of agreement: January 24, 2006 converted into a multi-donor agreement with the participation of Austria in October 2010.
- Current volume of the fund: US$ 49 million
- Volume of funds committed: US$ 30 million
- Financial contributors: Government of Japan (US$ 34 million), AfDB (US$ 10.6 million) Government of Austria (Euro 1 million), and Development Bank of Austria (Euro 1 million).
Background and Objectives
The multi-donor Fund for African Private Sector Assistance (FAPA) aims to support the implementation of the AfDB's Private Sector Development (PSD) Strategy by providing untied grants for technical assistance and capacity building to African governments, regional economic communities and similar intergovernmental organizations, business associations, market regulatory institutions, business development service providers, business training and research institutions, and public/private enterprises. Grants under FAPA enhance the Bank's ability to be more active in the upstream phases of the project preparation cycle in order to reinforce the quality of its pipeline of bankable private sector transactions. The resources may also be used to promote innovative programs that specifically support small and microscale enterprises and clean technologies, including the provision of seed money (highrisk equity capital) for start-ups, business incubators, etc.
Areas of Focus / Sub-Sectors
The thematic areas covered by FAPA are in line with the Bank's updated PSD Strategy, which articulates five focal priorities:
- Creating an enabling environment
- Strengthening financial systems
- Building competitive infrastructure
- Promoting the development of microsmall and mediumscale Enterprise (MSME)
- Promoting trade
- Regional economic communities
- Business associations
- Market regulatory institutions
- Business development service providers
- Business training and research institutions
- Public/Private Enterprises
Results and Milestones
- As of 31 Jan 2011, 36 projects have been financed for a total of US$ 29.7 million.
- Average size is US$ 826,000 per project.
- 48% regional/sub regional; 38% lowincome countries; 13% middleincome countries.
- Activities financed include support for enabling environment (24%), financial sector strengthening (23%), MSME development (34%), preparation of regional infrastructure PublicPrivate Partnerships (15%) and supporting trade (3%).
- As of February 2011, US$ 10 million of projects were in the pipeline.
- Microfinance: Advans Congo Microfinance Bank, Access Microfinance Bank of Liberia, Access Bank Tanzania, Access Bank Nigeria, Pulse Services Ltd., Microcred Ivory Coast (MIC).
- MSME: Tanzania CRDB Bank (SME guarantee facility), Zanaco Zambia (SME guarantee facility), Cameroon GrowthOriented Women Entrepreneurs (small and micro guarantee facility), Ghana SME exporters (guarantee facility), Franchising Promotion Initiative, Egypt Franchising Project, ATMS (African Training Management Services), Rural Income Enhancement in Egypt (RIEEP), Investment Fund for Health in Africa (IFHA), Equity and Guarantee Fund for Agri business in Africa (EGFAA, preparation study).
- Development Finance: BOAD (West African Development Bank), East African Development Bank, Shelter Afrique, PTA Bank (East & Southern Region), Banque Congolaise de l'habitat, FI training in Environmental and Social Management.
- Business Enabling Environment: Madagascar Extractive Industries Transparency Initiative Implementation, Rwanda Private Sector Federation, Africa Business Roundtable, Tunisia Strengthening Accounting, Mauritania mining, Central African Development Bank (BDEAC), Equity and Guarantee Facility for Agribusiness in Africa (EGFAA), Rwandan Development Bank, Banque de Kigali, African Domestic Bond Fund (ADBF).
- Infrastructure/PPP: Gambia River Basin (OMVG PPP hydro preparation, cofinanced with NEPAD IPPF), Central Africa Backbone IT Project preparation (cofinanced with IPPF), East Africa Submarine Cable System (PPP preparation, cofinanced with IPPF), Rosso Bridge Preparation Project co financed with NEPAD IPPF, Zaarat desalination study, African Carbon Support Program (ACSP) and Madagascar and Mozambique Extractive Industries Transparency Support (EITI).
- Trade: African Trade Insurance.
Administration and Governance Structure
The FAPA trust fund has a dedicated secretariat and an established and functioning Technical Committee (TC) with broad representation from across the Bank. This ensures expert review of technical cooperation proposals and monitoring of implementation. The Bank reports to the Oversight Committee (OC) for final approval of each project. In addition, the Bank holds annual donor meetings to review progress and performance.
Major Activities in 2011-2012 / Additional Resources Required
Target activity/funding volume 1220 operations per annum with a sustained funding level of US$ 15 million concentrated on defined work plan targets to be agreed with Bank/Donor Oversight Committee:
- DFIs (Development Finance Institutions);
- Microfinance and SMEs (linkage programs, MFIs);
- Entrepreneurship (business development services, associations, franchising, training and capacity building);
- Infrastructure PPPs (Public/Private Partnerships);
- Corporate governance.
Experiences, Challenges, and Ways Forward
In October 2010, the AfDB Board approved the multi-donor conversion of FAPA, with Austria joining through Development Bank of Austria (OeEB) and the Austrian Ministry of Finance (BMF).
Technical Department and Task Manager
Peter Ide, EPSA Coordinator, Private Sector Department
Tel: (216) 7110 2743
Principal Technical Assistance Officer
Aissatou Ba, Tel.: (216) 71 10 30 29
Partnerships and Cooperation Unit Focal Point
Veronica Giardina, Principal Cooperation Officer
Tel: (216) 7110 2519
- 06/05/2013 - AfDB’s African Financial Markets Initiative launches website on African local currency bond markets
- 04/03/2013 - AfDB and EBID Sign a US $950,000 Technical Assistance Grant
- 22/05/2012 - AfDB sponsors Fund of funds for Agribusiness in Africa - Board Approves Equity Investment of USD 100 million in Agvance Africa
- 22/11/2011 - AfDB eases funding for small to mid-sized firms in Mauritania
- 17/11/2011 - AfDB signs USD 12 million line of credit with Bank of Kigali