AfDB approves $200m credit line for private sector

AfDB approves $200m credit line for private sector
Published: 04 October 2017
THE African Development Bank Group (AfDB) has approved $200 million credit line to the private sector on the continent and the Industrial Development Corporation of South Africa to support industrialisation projects.

The IDC is South Africa's pre-eminent development finance institution mandated to promote industrialisation in Africa by investing in and developing the country's industrial base and other regional member states. The funding package is set to go a long way in helping scale-up the AfDB's High 5 agenda, particularly "Industrialise Africa".

"Fifty percent of the funding (1.3 billion South African rand) will be used for projects in South Africa and the balance (the United States dollar tranche) will be directed to other regional projects," said AfDB.

IDC is managed as an independent development finance institution, operating in a sustainable and self-financing manner with a strong governance structure. AfDB has a good and long-standing relationship with IDC. "The current operation is the third non-sovereign guaranteed line of credit from the AfDB. The recently concluded extended supervision of the previous facility $200 million indicated that the bank's support resulted in creation and retention of over 15 000 jobs by supporting agro-industries, logistics, transport and other industry infrastructure in Senegal, Zimbabwe, Mozambique, and Swaziland," said AfDB.

"This project is timely considering current economic challenges in South Africa as AfDB and IDC together can play a countercyclical role."

It said support was much needed as raising funds was becoming more difficult for South Africa and government-owned entities due to the country sovereign downgrade.

Over the years, AfDB has rendered critical financial support on the continent's capital expenditure projects in sectors such as energy.

Last year, AfDB announced that it was set to receive $10 billion through international development support for harnessing Africa's renewable energy potential and expand energy access across the continent.

AfDB board of directors has announced the endorsement of a proposal by its management to serve as Trustee to administer and manage the resources of Africa Renewable Energy Initiative (AREI), and also to host the AREI Independent Delivery Unit as requested by African heads of government. AREI was launched in Paris in December 2015 and was receiving strong international support from development partners who have committed to mobilising at least $10 billion cumulatively between 2015 and now.
- the herald
Tags: AfDB,


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