African Development Bank Highlights Five Priority Sectors for Private Sector Development
During the first edition of the "Financing Meetings" organized by the Ccitf and the CDC on May 16, Fernando Rodrigues, Head of Private Sector Operations in North Africa at the African Development Bank, emphasized the importance of five priority sectors in the Bank's 2021-2025 private sector development strategy. These sectors are deemed essential for catalyzing growth on the continent:
1. Energy, Climate, and Green Growth
2. Agriculture and Agro-Industry
3. Industries and Services (including ICT)
4. Multimodal Transport
5. Health and Education
The African Development Bank primarily targets large corporations, ad hoc companies, public enterprises, private equity funds, and financial institutions. For small and medium-sized enterprises (SMEs), the Bank uses an indirect approach, providing loans to local banks and investing in private equity funds, which in turn support the final beneficiaries.
In parallel, the Bank is committed to mobilizing third-party capital through guarantees and syndications, as well as providing technical assistance grants funded by donor funds, to amplify its development impact.
To achieve these ambitions, the Bank has two distinct lending windows: one for the public sector, with concessional financing terms, and another for the private sector, operating on market-based terms.
Among the eligibility criteria:
- The project for which financing is requested must be located or implemented in one or more regional member countries of the Bank in Africa.
- The African Development Bank's financial participation is limited to 33% of the total project cost for project and enterprise financing, 50% of equity capital for financial institutions, and 25% of total share capital for equity investments.
- The host country should not object to the operation.
