Tag: AfDB

  • AfDB, Fortis MfB sign N1b loan for SMEs

    AfDB, Fortis MfB sign N1b loan for SMEs

    The African Development Bank (AfDB) and Fortis Microfinance Bank  (Fortis) yesterday signed an agreement for a N1 billion facility to be used for lending to small and medium enterprises (SMEs) in Nigeria.

    A statement from the AfDB explained that the partnership with Fortis is expected to boost Nigeria’s private sector development through financing of projects that are strategically aligned to the country’s development agenda.

    AfDB Country Director in Nigeria, Dr. Ousmane Dore underscored the importance of strengthening micro finance initiatives, adding: “Unless those at the bottom of the pyramid have access to finance, poverty will remain a major development issue.’’

    He re-affirmed the bank’s commitment to promote inclusive, private sector-led growth and employment creation in Nigeria and across the continent.

    Speaking during the signing, Fortis Managing Director and CEO, Tiko Okoye said the deal was significant as it underscored the firm’s desire to empower SMEs in the country.

    “The collaboration with the AfDB has added a significant boost to the realisation of our dreams of empowering more Nigerian households through the SMEs.

    “SMEs across all climes are the engine of most economies, Nigeria and Africa inclusive. A more formidable SMEs sector will lead to a stronger Nigerian economy,” he added.

  • AfDB launches three-year $1b Global benchmark

    AfDB launches three-year $1b Global benchmark

    The African Development Bank (AfDB), rated Aaa/AAA/AAA, has launched $1 billion fixed rate dollar Global benchmark due 20 September 2019, the issuer’s fourth global benchmark issue this year.

    The transaction has a coupon of 1.125 per cent and was priced at a spread of mid-swaps plus 9 basis points, the tightest three-year benchmark pricing by the issuer since 2014, and equivalent to 26.2 basis points over the 0.875 per cent UST due September 2019. Joint lead managers are Barclays, BofA Merrill Lynch, J.P. Morgan and TD Securities.

    The mandate for a new $1 billion “no-grow” three-year benchmark was announced in London last Tuesday, with books open for indications of interest (IoIs) with initial pricing thoughts in the context of mid-swaps plus nine basis points (bps) area.

    Books were officially open at around 08.10 London time on Wednesday, September 14. IoIs stood in excess of $600 million at this time, with official guidance unchanged at mid-swaps plus nine basis points area.

    The order-book continued to grow, and by mid-morning orders stood in excess of $1 billion.

    The distribution by investor type was as follows: 67 per cent with central banks and official institutions, 17 per cent with fund managers, 11 per cent with banks, and five per cent with pension funds and corporates.

    In terms of geographical distribution, 46 per cent of the bonds were placed with accounts in the Americas, 38 per cent with Europe, 11 per cent with Asia and five per cent with the Middle East and Africa. The final orderbook stood in excess $1.3 billion, with 40 investors participating.

  • FirstBank, FSDH get AfDB’s $350m facility

    FirstBank, FSDH get AfDB’s $350m facility

    African Development Bank (AfDB) has approved $350million loans to First Bank of Nigeria and FSDH Merchant Bank Nigeria to support import-export activity of local enterprises.

    The continental lender said the two facilities are part of its broader efforts to provide counter cyclical support to the economy at a time of falling commodity prices.

    It said the fall had caused shortages in foreign currency supply and led to unmet demand for trade finance instruments to support on-going economic transitions.

    The Nigeria Country Field Office said yesterday in Abuja, that the facilities will support local enterprises involved in import-export activity.

    “The loans will help to address critical market demand for trade finance and dollar liquidity by supporting vital economic sectors.

    “Such sectors include agri-business, chemicals, construction and engineering, food processing, manufacturing and non-traditional exports.

    “It will foster financial sector development, enhance regional integration, contributing to increased government revenue generation at a time when the Nigerian economy is facing fiscal pressures and foreign currency liquidity challenges.

  • AfDB approves $9m equity investment for SME’s in Nigeria

    AfDB approves $9m equity investment for SME’s in Nigeria

    The African Development Bank (AfDB) has approved a $9million equity investment in the Fund for Agricultural Finance in Nigeria (FAFIN) to provide expansion capital to agric small and medium-sized enterprises (SMEs), according to a statement issued by continental lender yesterday.

    The statement said FAFIN is a first-generation private equity fund that provides financial, capacity-building and technical assistance to commercially viable SMEs in the Nigerian agribusiness sector.

    It said FAFIN used a unique value chain-centric approach, a combination of equity, quasi-equity and convertible loan instruments to provide loan for SME s.

    According to it, FAFIN implements its strategy and constructs its portfolio through a bifocal lens consisting of the twin objectives of competitive financial returns and measurable positive social impact.

    The Fund is jointly sponsored by the German KfW Development Bank and the Government of Nigeria, through the Federal Ministry of Agriculture and Rural Development (FMARD).

    The Fund Manager is Sahel Capital (Mauritius) Limited, a fund management firm incorporated in Mauritius in 2013.

    The project is expected to deliver strong development outcomes from household benefits and employment through the creation of a large number of jobs and the provision of agric products.

    It also said this would bring about positive gender and social effects through the implementation of out-grower schemes and supporting rural development and private sector development.

    It said through alleviation of financial constraints faced by agribusinesses, this would enhance agricultural value chains.

    “The project’s contribution to inclusive growth is expected to be significant, given the large numbers of jobs to be created and out-growers to be reached at the level of sub-projects,’’ the statement explained.

    Its contribution to green growth is expected to be low, because the Fund targets the agribusiness sector with some expected negative effects on the environment.

    The Fund’s primary focus will be on SMEs across the agric value chain with crop value chain and geographic diversification.

    It aims at fixing broken value chains to increase efficiencies, reduce post-harvest loss, and increase smallholder farmer incomes and SME agribusiness profitability.

    Investment instruments will be primarily quasi-equity (convertible bonds, preference shares and structured royalties) and direct equity. The ticket size ranges from $500, 000 to $5 million.

    The Fund is aligned with the Bank’s Ten Year Strategy focusing on inclusive growth, strengthening agriculture and food security, and access to local SME finance.

    It added that this encapsulated in the Bank’ High Five Development Agenda for Africa, specifically Feed Africa and Industrialise Africa.

    It is also in line with the Bank’s Strategy for Agricultural Transformation in Africa (2016-2025), Strategy on Jobs for Youth in Africa (2016-2025).

    Others are the Bank’s Country Strategy Paper for Nigeria (2013-2017), which supports an enabling environment for agriculture.

  • AfDB team inspects Fed roads in Abia to determine repair funding

    AfDB team inspects Fed roads in Abia to determine repair funding

    A team from the headquarters of the African Development Bank (AfDB) in Abidjan, the Cote DÍvoire capital, led by the bank’s Transport Specialist, Mr. Mwila Aeron Katambula, is in Abia State to inspect environmental degradation.

    The team, which is on the final lap of talks between the state government and the continental bank on some developmental projects, is examining how to partner the state government to tackle the environmental challenges.

    Governor Okezie Ikpeazu met with the bank’s team in Umuahia, the state capital, accompanied by another team from the Federal Ministry of Works in Abuja.

    The governor said the state was waiting for the beginning of repairs of major roads in Aba, the state’s commercial city.

    He said Aba, which has two major federal roads – Port Harcourt and Ikot Ekpene – needed urgent attention, if the state government was to enjoy the city’s full potential.

    Ikpeazu noted that the commercial city was popular for its artisan, craftsmanship and ingenuity in the production and fabrication of equipment.

    The governor said the city needed to have functional roads and clean environment for investors to feel comfortable.

    He said: “Road infrastructure is very important to us in Aba. Apart from being the commercial nerve centre of Abia State; in fact, the entire Southeast, Aba is the Small and Medium Enterprises (SME) centre of Nigeria.

  • ABUAD, AfDB partner on multimillion industrial park

    The Founder of Afe Babalola University, Ado Ekiti (ABUAD) Aare Afe Babalola has expressed confidence that the Industrial Park to be constructed by the institution with the Africa Development Bank (AfDB) will change the economy of Ekiti State.

    Babalola spoke while playing host to a team of AfDB officials and other Nigerian commercial banks who are partnering with ABUAD to carry out the Industrial Park project.

    He said AfDB is supporting the project which he described as a “unique collaboration between the university and the industrial sector”.

    According to him, the Park, when completed, will turn Ekiti to a “reputable industrial belt in Nigeria”.

    Babalola expressed delight that the collaboration has shown that ABUAD has become an acceptable international brand and that what is happening in the university is being followed all over the world.

    He explained that this would be the first time AfDB would co-sponsor a project of that magnitude in a private university in its 54-year history.

    Coordinator of the Industrial Park project, Prof Adeyemi Aderoba, disclosed that 80 acres of land have been acquired for the park, adding that the feasibility study and environmental impact assessment had been conducted.

    The professor of Industrial Engineering said the university is developing drones and robotics to be moved to the Park which he said would have the best technology to aid commerce.

    The head of AfDB delegation, Ms. Sylvie Mhieu, said the visit was a follow-up to an earlier one in March to learn more and verify what they had read about the university.

    She explained that there was need to return again with a stronger team to continue the assessment and get a deeper understanding of ABUAD’s plan and how the AfDB could help achieve the goals with the support of Nigerian banks.

    On proposed grant to aid the project, Mhieu said: “The bank right now is looking at $40 million loan. The conditions are among the reasons we are here to thrash out the ABUAD team.

    “We are a development bank and you should expect that the conditions would be much better than those of the commercial banks.”

    On her assessment of ABUAD, Mhieu said: “Just like Chief Afe Babalola said, ABUAD does things differently.  It is not only a university; it is also a teaching hospital, it’s a farm and so on. ABUAD is a university that’s always thinking outside of the box and that is interesting.

    “We are impressed by the innovations and by the creativity and also that one of the high fives of the AfDB is improving life of Africans and the best way to do that is through education.”

  • AfDB to invest $24b in agriculture

    AfDB to invest $24b in agriculture

    African Development Bank(AfDB) President, DrAkinwumiAdesina said the bank plans to invest about $24 billion (or $2.4 billion yearly) over the next 10 years to help drive the agricultural transformation inAfrica.

    This is, he said, represents a 400 per cent increase in financing to the agricultural sector by the bank.

    He spoke at the Seventh African Agricultural Science Week and FARA General Assembly, in Kigali, Rwanda.

    He lamented that  Africa spends $35 billion on importing food. This, according to him, is projected to grow to $110 billion by 2025.

    He noted: “Africa is importing what it should be producing, creating poverty within Africa and exporting jobs outside of Africa. Scarce foreign exchange is used to buy food. Lacking ability to feed itself, Africa becomes vulnerable, dependent on market forces to feed its burgeoning population. Any shock to global food production will have direct price transmission into Africa, especially into the rural areas, where the percentage of net buyers of food is high, despite being the zones to produce food to feed their countries.”

    According to him, Africa needs to invest more in science and technology to become more efficient and competitive in agriculture – and to diversify rapidly its economies.

    He said: “For Africa must fully unlock its immense agricultural potential. That potential is massive: Africa has 65 per cent of all the arable land left in the world to feed 9 billion people by 2050. Africa cannot eat potential.

    He acknowledged that FARA is doing a great job for Africa, mobilising the research community to work for the development of scientific innovations to drive agricultural growth.

    He lauded Akinbamijo for his excellent leadership as head of FARA.

  • UBA secures $150 million credit line from AfDB

    UBA secures $150 million credit line from AfDB

    The Board of Directors of the African Development Bank Group (AfDB) through its private sector window has approved a $150 million Line of Credit (LOC) to United Bank for Africa (UBA) Plc.

    UBA has been the leading financial institution sup-porting various infrastruc-ture projects, particularly power, telecom, transport and social infrastructure such as hospital and education facilities.

    This has given the bank a lot of recognition and awards, including the Social Infrastructure Deal of the Year Award in 2015.

    In its Nigerian operations, UBA supports over 3,700 Small and Medium Enterprises (SMEs) covering all the 36 states of the federation, through over 450 business offices and touch points.

    The LOC will thus help finance infrastructure and SME projects, including women-owned enterprises in Nigeria. It will support infrastructure development, particularly the power sector, which is a major constraint for Nigeria’s economic diversification and inclusive growth.

    The power sector financing gap in Nigeria remains enormous with almost 50 per cent of the population lacking access to electricity.

    By leveraging UBA’s network, the LOC will also scale up lending in both urban and rural areas to create more jobs and to promote inclusive growth for Nigeria’s economy by stimulating the various sectors such as manufacturing, construction, agriculture, education and services.

  • AATF lauds former Agriculture Minister

    AATF lauds former Agriculture Minister

    A team from the African Agricultural Technology Foundation (AATF), has commended the President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, for his giant strides in the bank since assumption of office.

    The ATTF in a delegation led by its Board Chair, Dr. Ousmane Badiane, including Dr. Denis Kyetere, Executive Director, Dr. Emmanuel Okogbenin, Technical Operation Director and Mr. John Makokha, Resource Mobilization Officer to Abidjan congratulated Adesina.

    The team eulogized him for initiating the Technologies for African Agricultural Transformation (TAAT) program, a critical strategy of AfDB to transform Africa’s agriculture and ensure that the continent is self-sufficient in food production.

    TAAT, which was established in 2015 after Adesina took over as the President of AfDB, aims at eliminating extreme poverty, ending hunger and malnutrition, achieving food sufficiency, and turning Africa into a net food exporter as well as setting Africa in step with global commodity and agricultural value chains.

    The Program, to be jointly implemented by the CGIAR system in collaboration with the Forum for Agricultural Research in Africa and other agricultural research and development organizations in Africa has eight priority agricultural value chain areas: rice sufficiency, cassava intensification, Sahelian food security, savannas as breadbaskets, restoring tree plantations, expanding horticulture, increasing wheat production, and expanded fish farming.

    “TAAT is about right technologies getting into the hands of farmers. AATF’s products fit very well into the TAAT priority areas. Inclusion of AATF technologies in TAAT presents us with a large array of technologies for farmers to choose from. It is therefore important that AATF with its wealth of experience and ready technologies becomes an implementing partner in TAAT,” stated Adesina.

    During the meeting, Kyetere shared with the AfDB team AATF’s approach and experience with public-private-partnerships, accessing technology solutions for smallholder farmers, and enhancing productivity as well as agri-business opportunities for wealth creation.

    “We have ready to roll technologies that are already creating impact among rural farmers in Sub-Saharan Africa and that resonate well with TAAT’s priorities. We are happy to participate in this great initiative towards a food secure Africa,’ said Kyetere.

    He highlighted some of the AATF initiatives that could add value to TAAT’s goals such as the Cassava mechanization and Agri-Business Project that has increased cassava yields from 9 to 25 tonnes per ha and farmer incomes from US$62 to US$92 per tonne through production efficiency and reduction in labour drudgery especially for women; DroughtTego maize, a product of the Water Efficient Maize for Africa Project that is helping farmers deal with climate change challenges, StrigAway technology that is already changing the lives of smallholders  in Striga endemic areas in East Africa and Hybrid rice that aims at achieving self-sufficiency in rice production in the region and currently showing potential to yield up to 7 tons per hectare.

    Other technologies and initiatives that AATF is involved with and that have potential to change farmers’ livelihoods and help TAAT realize the goal of turning African Savannas into Bread Baskets include the Pod Borer Resistant  Cowpea, Bt maize and the Seeds2B initiative that is about getting the right seed to market at the right time and right price.

    The AATF team also met with Dr. Chiji Ojukwu, the Director Agriculture and Agro-Industry Department (OSAN) at AfDB, Ben Kanu and Jonas Chianu, the TAAT Task Team Lead. Ojukwu reiterated AfDB’s commitment to work with all relevant institutions including AATF to make TAAT a success in delivering technologies for agricultural transformation in Africa.

    The AATF team also said Africa will soon have its own rice hybrids due  to a public-private partnership project.

    The varieties which have been developed using the 2-line rice hybrid technology have the potential to produce 7 tonnes per hectare.

    Kenya will be among the first countries to benefit from this pioneering breakthrough in rice breeding in SSA as early as next year considering that two hybrids are already undergoing national performance trials. Farmers in Tanzania are likely to get access to the hybrids in 2018.

    The project is further evaluating the performance of 127 rice hybrids for advancement to national performance trials, according to Dr Kayode Sanni, the Project Manager.

    Hybrid rice seeds currently being planted in Africa are either imported from Asia or America. Egypt, is the only country in Africa that has developed its own rice hybrids. With this breakthrough, Africa will realize its own high yielding hybrid seeds, consequently boosting production and moving closer to self-sufficiency in rice production.

    This is indeed good news to farmers, seed companies and rice consumers in SSA. While global production of rice has risen steadily from 132 million tonnes in 1960 to 491.5 million tonnes in 2015, Africa has not contributed much to the increase, producing only 3 per cent, with Asia accounting for 90 per cent of the global production.

     

  • AfDB Potato value chain project for Plateau

    AfDB Potato value chain project for Plateau

    The African Development Bank (ADB) potato value chain project that will boost potato farming is to take off in Plateau State soon, its Coordinator, Mr. Thaddeus Yelwa, has said.

    Speaking in Jos, the Plateau State capital on Monday, Yelwa said once the project begins, the state would produce Irish potato three to four times yearly.

    He said the project, aimed at improving the quality and quantity of potato farming, will empower farmers with improved seedlings and other farming tools.

    Yelwa added that the value chain project was an offshoot of Fadama ll programme, which ended in 2012.

    “Plateau is rated the leading state in terms of execution and utilisation of funds made available by ADB for Fadama ll projects. This is why the bank has also agreed to include us in the six states that will benefit from the additional funding,” he said.

    He said this time around the money would be channel into improving potato farming because the state produces it in high quantity.

    “This project will soon take off, and it will cover the aspect of production, storage, processing, which is value addition and also marketing of the product,” he said, assuring that with all modalities in place, Plateau will be producing potato four to five times in a year once the project begins.

    He further explained that with the project on course, potato farmers would smile home, as ordeals they usually encounter would be taken care of by the project.

    The Coordinator urged Plateau indigenes to go into potato farming, saying “it is a very lucrative and viable business”.