African Development Bank's Private Sector Development Strategy for North Africa
During the "Financing Meetings" organized by the Tunisian-French Chamber of Commerce, Fernando Rodrigues, Head of Private Sector Operations for North Africa at the African Development Bank (AfDB), presented the institution's main areas of intervention in support of regional economic development. To date, the private sector department's portfolio for North Africa represents over 600 million euros, contributing to various projects ranging from infrastructure to energy, agro-industry, and social services.
Overview of AfDB's Private Sector Operations
From its regional office in Tunis, Fernando Rodrigues oversees operations spanning from Mauritania to Egypt, targeting both private companies and financially autonomous public enterprises. The AfDB intervenes primarily through loans, guarantees, and equity investments, aiming to create a catalytic effect by mobilizing other investors and financial partners. "Our mission is to support investment, diversification, and modernization projects while ensuring their social and environmental sustainability," he explained.
Complementary Financing Windows
The institution distinguishes between two complementary financing windows:
- The public window, which supports states in large-scale projects, including infrastructure and investment incentive policies
- The private window, which focuses on economic operators, particularly small and medium-sized enterprises (SMEs)
The proposed financing can cover approximately one-third of the total project cost, with amounts generally exceeding 10 million euros or dollars. Financing durations vary from 8 to 12 years for most projects and can reach up to 20 years for infrastructure or energy projects.
Priority Sectors
Among the financed sectors, energy, agro-business, education, and healthcare are prioritized, with an emphasis on environmental and social impact. The AfDB also supports companies in complying with international standards and facilitates access to local currency financing through partial guarantee mechanisms in partnership with regional commercial banks. "We aim to maximize job creation, revenue generation, and business sustainability," Fernando Rodrigues emphasized.
Opportunities for Support in Tunisia
According to the AfDB, Tunisia presents several development axes with high potential for the private sector:
- Valorization of natural resources
- Agricultural potential for the development of a strong agro-industrial sector
- Transformation of the energy landscape towards independence based on green energy
- Support for national industrial champions to accompany them in diversification and expansion across the African continent
- Solid financial sector and services to support private sector development
These opportunities highlight the potential for the AfDB to make a significant impact in supporting Tunisia's economic development and promoting private sector growth in the region.
