By Shola Akingboye, January 7, 2019
The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank Group, have approved a credit risk participation by the Private Sector Credit Enhancement Facility (PSF) in seven loans cumulatively valued at $149 million.
The seven operations include senior loans targeting renewable energy and agroindustry sectors in Uganda, Sudan, and Cameroun among others, as well as lines of credit to lenders in Liberia and Mali.
Launched in 2015 by the ADF, the PSF provides credit risk participation in private sector operations of the African Development Bank in low-income countries; and is on its way to building a $1.5 billion portfolio of exposures.
“These approved operations bring the facility’s total portfolio to over 40% of its $1.5 billion target size and increase the PSF’s footprint to 29 countries. They deliver on our mandate to contribute to development impact through enabling additional financing of private sector projects in low-income countries,” PSF Administrator, Cecile Ambert said.
The operations were prioritised in light of their superior expected development results and additionality; particularly in terms of increased access to electricity, food security, and job creation.