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 $57.6 million
- Volume of funds committed: US $46.6 million
- Financial contributors: Government of Japan (US $44.3 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 micro-scale enterprises and clean technologies, including the provision of seed money for start-ups, business incubators, etc.
Areas of Focus / Sub-Sectors
The thematic areas covered by FAPA are in line with the three strategic pillars of the Bank’s Private Sector Development Strategy (2013-2017):
- Investment and Business Climate – Support for enabling policy, legislative and regulatory environment (“soft infrastructure”) for private sector development.
- Access to Social and Economic Infrastructure – Assistance to regional member countries to address known and targetable “hard” infrastructure constraints to private sector development, particularly in transport and energy. Selected activities in skills improvement and education.
- Enterprise Development -- Assistance to countries to address specific enterprise-level challenges to private sector development, including skills shortages, difficulties in accessing finance, lack of scale, value chain gaps and weakness.
Activities financed by FAPA are implemented by the Bank (Bank-executed) or by recipients (externally-executed). External recipients (grantees) are public, private or mixed entities legally domiciled in Africa. The ultimate beneficiaries are all private sector participants in Africa.
Results and Milestones
- As of 31 December 2013, 54 projects approved for a total of US $-46.6 million.
- Average size is about US $850,000 per project.
- 48% regional/sub regional; 38% low income countries; 13% middle income countries.
- Activities financed include support for enabling environment (20%), financial sector strengthening (25%), MSME development (40%), preparation of regional infrastructure Public Private Partnerships (12%), and supporting trade (3%).
Administration and Governance Structure
The FAPA trust fund has a dedicated Secretariat and an established and functioning Technical Committee with broad representation from across the Bank. This ensures expert review of technical cooperation proposals and monitoring of implementation. An Oversight Committee of donors approves all projects and reviews overall progress and performance of the fund.
Major Activities in 2013
Approvals for the year totaled US $6.4 million for eight projects.
In July 2013, the Oversight Committee approved the largest FAPA grant ever, US $3.98 million for the AfDB Africa SME Program. The grant will contribute to building the capacity of some 25 financial institutions participating in AfDB’s “Africa SME Program,” which will extend credit lines and technical assistance to selected SME lenders throughout the continent. The grant will fund technical assistance and training to improve operational efficiencies in areas such as credit assessment and risk management, thus improving access to finance and opportunities for growth of African SMEs.
Technical Department and Task Managers
Principal Technical Assistance Officer
Aissatou Ba, Tel: (216) 71 10 3029
Partnerships and Cooperation Focal Point
Shingo Kikuchi, Senior Cooperation Officer, Tel: (216) 7110 1714
Please select a country
- 16/01/2014 - Don du FAPA : 491 150 $ pour identifier des projets de ports en PPP
- 18/12/2013 - Rwanda : la BAD octroie deux financements pour doper les compétences dans l'énergie et la collecte des recettes fiscales des collectivités
- 18/10/2013 - AfDB grants VoLo US $284 500 for credit bureau initiative in Senegal and The Gambia
- 07/08/2013 - Advans Bank Congo (ABC) : Le microcrédit en République démocratique du Congo
- 22/07/2013 - La BAD s’engage en faveur des PME : Favoriser une croissance inclusive en Afrique