- An enterprise/project must be located and incorporated in the Regional Member Countries (RMCs) of the Bank, whether promoted by African or non-African investors.
- An enterprise/project must be majority-owned (more than 51 per cent) by private-sector investors, or publicly owned with strong financial standing and proven managerial autonomy.
- Projects for the establishment, expansion, diversification and modernization of productive enterprises (i.e. CAPEX). No direct financing of trade.
- Investment size determined by Single Obligor Limit and other prudential considerations.
- Maximum AfDB participation cannot exceed 33 per cent of total project cost for Greenfield projects; however it can be higher for projects entailing expansion of existing facilities. Minimum AfDB participation usually exceeds US $3 million or equivalent.
- Evidence of strong integrity, good reputation and adequate financial standing.
To enable the Bank to promptly assess the eligibility of a project for investment, interested enterprises should submit a preliminary application covering, in general, the following information:
- Description of the project (sector, location, production volumes, etc.)
- Project description
- Sponsors, including financial and managerial background
- Cost estimates, including foreign exchange requirements
- Financing plan, indicating the amount of AfDB financing desired
- Key technical and environmental features
- Feasibility indicators
- Business climate, market prospect, including proposed marketing arrangements
- Implementation plan, including the status of required licenses, permits, certificates, etc.
Having determined the eligibility of a project financing application, the Bank will initiate a full application review. To facilitate this, the Bank will require the following:
- Feasibility study
- Business plan
- Environmental and social impact assessment (depending on the nature of the project)