Startups in Africa’s agribusiness sector now stand a chance to benefit from the African Development Fund (ADF), the concessional window of the African Development Bank Group (AfDB), which has approved loans amounting to Sh3.8 billion ($37.2 million) to cover related credit risk for projects in Kenya, Sudan and Senegal.
“The board of directors of the African Development Fund (ADF), the concessional window of the African Development Bank Group, approved on January 15, 2020, credit risk participations by the Private Sector Credit Enhancement Facility (PSF) for projects in Kenya, Sudan and Senegal,” said the bank.
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- Businesses covered are in agriculture as well as those in the small and medium enterprises (SME), the bank said in a statement.
“The agreement covers operations cumulatively valued at $37.2 million and includes a corporate loan to support an East African agribusiness firm’s domestic and regional expansion and two lines of credit targeting SME borrowers.”
- The bank, however, did not give a breakdown of the specific amounts to go to each country.
- Launched in 2015 by the ADF, the PSF provides credit risk participations in low-income countries and is well on its way to building a $1.5 billion portfolio of exposures. This means it acts as an insurance facility for loans.
“The approval of these operations brings the PSF’s total portfolio to $733.25 million, comprising risk exposures in 47 operations amounting to roughly $2.6 billion of total on non-sovereign operations (NSO) loans,” said the bank.
- Under the NSO policy, the bank may provide financing or investment without a sovereign or State guarantees to private and public entities that meet specific eligibility requirements.
“We continue to advance the African Development Fund’s mission to strengthen development impact by creating opportunities for the private sector to invest in low-income countries,” said PSF administrator Cecile Ambert.
- The bank said the approved operations were selected because of high potential to increase food production, deepen regional trade, and spur job creation, particularly for women and young entrepreneurs.
For More Enquiries About The Fund, Contact:
African Development Bank Group
Avenue Joseph Anoma
01 BP 1387 Abidjan 01
Côte d’Ivoire
Some Bank operations are located at
Immeuble du Centre de commerce International d’Abidjan CCIA
Avenue Jean-Paul II
01 BP 1387
Abidjan 01, Côte d’Ivoire
Phone (Standard): +225 2026 3900
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com