How to get support from the Bank

Operators wishing to work with the Bank must meet eligibility criteria and follow the application procedure. Eligibility criteria and application procedure vary depending on whether you are:

Private sector

Who is eligible? 

  • An enterprise/project must be located and incorporated in the Bank’s Regional Member Countries of the Bank whether or not they are promoted by African or non-African investors.
  • An enterprise/project must be either majority-owned (more than 50%) by private-sector investors or publicly owned, have strong financial standing and a proven managerial autonomy.
  • Projects for the establishment, expansion, diversification and modernization of productive enterprises (i.e. capital expenditure.
  • The size of the investment is determined by the single obligor limit and other prudential considerations.
  • Maximum Bank participation is 33% of total project costs for Greenfield projects. The percentage can be higher for projects entailing expansion of existing facilities.
  • Evidence of strong integrity, a good reputation, and adequate financial standing

The process

For the Bank to promptly assess the eligibility of a project for investment, interested enterprises should submit a preliminary application with the following information:

  • Project description (sector, location, production volumes, etc.)
  • Sponsors and their financial and managerial background
  • Cost estimates, including foreign exchange requirements
  • Financing plan, indicating the amount of Bank financing desired
  • Key technical and environmental features
  • Feasibility indicators
  • Business climate, market prospects, including proposed marketing arrangements
  • Implementation plan that includes the status of required licenses, permits, certificates, etc.

After determining the eligibility of a project’s financing application, the Bank will initiate a full application review for which the following elements are required:

  • Feasibility study
  • Business plan
  • Environmental and social impact assessment (depending on the nature of the project)

Financial instruments

The African Development Bank continues to adjust its operations by adapting existing instruments and adopting new ones when necessary to manage risk and to assure that services are delivered efficiently to the changing needs of its clients in emerging markets. Typically, the following financial products are required:

  • Senior Debt:

                - Up to 15 years (including a five-year grace period)
                - Foreign or local currencies, risk-priced

  • Guarantees:

                - Partial risk, partial credit (long tenors)
                - For specific credits or commercial bank SME programs, risk- priced.

  • Subordinated Debt:

                - Subordinated loans or bonds
                - Local currency possible, maximum 15 years (10+5), risk priced

  • Equity:

                - Direct investments in banks, development financial institutions, micro-finance institutions, etc.
                - Up to 25% with or without Board seat, planned exit, commercial returns.

  • Technical Assistance:

                - Grants for studies
                - Up to US $1 million for institutional capacity-building programs.

Public Sector

Public Private Partnership

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