Initiatives & Partnerships

As Africa’s premier development finance institution, the African Development Bank’s partnership portfolio has considerably increased in diversity and complexity in recent years due to its enhanced institutional credibility and visibility.

With our long experience related to the financing of private sector projects and programs, including small and medium-size enterprises support programs and Public-Private Partnerships. The private sector team has always worked with other multilateral development banks, development finance institutions, bilateral donors and United Nations agencies, as well as non-member states, private foundations and academic institutions, Pan-African, sub-regional and national institutions in Africa that share the values expressed in our mission statement.

A growing number of opportunities on our key priority areas have emerged through the following initiatives allowing to deepen our knowledge base, provide capacity building support and to deliver development benefits to our beneficiaries.

Enhanced Private Sector Assistance initiatives

The Enhanced Private Sector Assistance (EPSA) Initiative is an innovative, multi-component, multi-donor framework for resource mobilization and development partnership to support implementation of the AfDB’s Private Sector Development Strategy. Drawing on successful development experience in Asia and around the globe, EPSA was conceived in partnership with the Government of Japan, which has provided generous financial support since its launch in 2005 at the Gleneagles G8 Summit.

One of the key components of the EPSA is the Fund for African Private Sector Assistance (FAPA), a multi-donor thematic trust fund that provides grant funding for technical assistance and capacity building to support implementation of the Bank’s Private Sector Development Strategy. The Government of Japan, African Development Bank, the Austrian Development Bank and the Government of Austria are the contributors to the fund, which to date has provided US $34 million to 41 projects across the African continent.

The FAPA portfolio includes regional and national projects in sectors such as business enabling environment, financial institutions support, infrastructure, trade, and micro, small and medium enterprises.

Other partnerships

African Financing Partnership (AFP)

The African Financing Partnership (AFP) is a collaborative, co-financing platform amongst AfDB and other development finance institutions (DFIs) active in private sector project financing in Africa. The AFP is a component of the AfDB’s mission to help reduce poverty in Africa by mobilizing resources for private sector development on the continent. The objective of the AFP is to bring together DFI partners with a similar mission so that further results could be delivered through combined efforts.

Since the creation of the AFP, participating DFIs have collaboratively financed projects such as the Enfidha Airport in Tunisia; Main One Cable in Nigeria; Helios Towers in Nigeria and private equity funds. In 2010, the partner DFIs targeted several projects with collaborative financing creative investments of multiple billions. The pipeline of projects under the AFP comprises commercially viable private sector projects with substantial development outcomes. Such projects would be feasible vehicles for long-term institutional investments looking for returns in Africa’s emerging markets. The AFP Secretariat is hosted by the AfDB and it is supported by the Canadian International Development Agency (CIDA).

Did you know

In 2016, total Bank approvals for private sector operations amounted to UA 1.93 billion, 24 percent higher than in 2015. The interventions in 2016 — co-financing, syndication, and strategic partnerships—have strengthened its capacity to leverage and crowd-in third-party investors. They also lifted the ratio of private co-financing to Bank financing to 6:1, against the target of 5:1.