The Bank Group approves agriculture and forestry sector risk participations
The Board of Directors of the African Development Fund (ADF), the concessional arm of the African Development Bank Group (AfDB) on Wednesday, September 28, 2016 approved four agriculture and forestry sector risk participations amounting to US $62 million under its Private Sector Credit Enhancement Facility (PSF).
These four transactions are risk participations in Private Sector projects of the Bank Group and cover investment programs in Benin, Burkina Faso, Cameroon, Côte d’Ivoire, Ethiopia, Ghana, Kenya, Malawi, Mozambique, Niger, Nigeria, Senegal, Tanzania, Togo, Zambia and Zimbabwe.
Launched in 2015, the PSF is the institution’s risk sharing initiative to increase private financing in low-income countries. The PSF is supported by a US $230 million grant from the ADF to cover potential losses on payment defaults up to US $690 million.
With these approved risk participations, the cumulative amount of exposures approved since commencing operations has reached US $345 million (51% of total program amount).
These new transactions bring to twenty three (23) the number of approved projects under the PSF scheme, which covers a cross section of sectors including independent power producers (including renewable energy projects), toll roads, container terminals, cement plants, agro-industries, and financial institutions.