Bank Group vision

The vision adopted by the Bank identifies private sector development as one of the areas of focus in its central goals of poverty alleviation and sustainable growth.

This emphasis on the pivotal role of the private sector has also been reaffirmed in all Bank policy documents. In sectors such as agriculture, infrastructure, education and health, the related policies recognize that the development of a strong and dynamic private sector is crucial to sustainable economic growth as well as to poverty reduction.

In this context, the major challenges assigned by the Bank to its Private Sector Operations are to:

• play a catalytic role in mobilizing financial resources for private sector development;
• extend technical assistance to intermediaries and beneficiaries concerned with private sector activities;
• identify appropriate and innovative mechanisms to support private sector entities, with a special focus on SMEs; and
• complement other Bank actions aimed at improving the business climate and increasing confidence among lenders and potential investors in Regional Member Countries (RMCs).

The Private Sector has been assigned with the responsibility of making the Bank responsive to the private sector’s needs and extend appropriate technical and financial support, within the general framework of assisting RMCs shifting from State-controlled economies to Private-led economies.

The Bank’s vision for private sector development is founded on a conceptual framework for development impact that links entrepreneurship, investment, and economic growth with the Bank’s ultimate goal of poverty alleviation. Given the importance of PSD as the engine for poverty-reducing economic growth, the Bank’s strategy articulates five focal development priorities for its interventions: 

• improving the investment climate
• supporting private enterprises
• strengthening financial systems
• building competitive infrastructure, and
• promoting trade.

Improving the Investment Climate – The Bank aims to improve the investment climate and so catalyze domestic and foreign companies to support economic and social development. It does this by assisting governments to reform their legal and regulatory frameworks; to strengthen economic and corporate governance; to promote fiscal responsibility, transparency and accountability; to consolidate property rights; to mitigate risks for domestic and foreign investors; to support commercial law reform; and to improve security for goods and transactions.

Supporting Private Enterprises – The Bank strives to support private enterprises across the full business spectrum from micro-enterprises to mega-enterprises and across the broadest range of countries from middle income to low income.

Strengthening Financial Systems – Where effective potential partnerships with commercial, cooperative, and microfinance banks can be identified, the Bank seeks to provide longer-term financing through lines of credit in local currencies or guarantees, subordinated debt, equity, and/or technical assistance.

Building Competitive Infrastructure – The Bank is uniquely positioned to address the infrastructure needs of regional member countries by combining resources from both public and private windows (including concessional resources) as well as providing technical assistance and capacity building in support of PPPs.

Promoting Regional Integration and Trade –Through the private sector, the Bank seeks to reinforce regional integration by promoting the creation of regional development corridors.