Project General Description
The African Financing Partnership (AFP) is a collaborative, co-financing platform between eight key Development Finance Institutions (DFIs) focused on mobilizing private sector financing in Africa. These DFIs known as the Promoting Partners of the AFP include the AfDB, DBSA, DEG, FMO, EIB, IDC, IFC and Proparco. The DFIs signed a Memorandum of Understanding (MOU) for enhanced partnership and collaboration in co-financing, and improving efficiency in the delivery of Private Sector projects in Africa in May 2010.
Several other operational steps were achieved in 2010 including the development of a framework confidentiality agreement and operational guidelines to facilitate the streamlining and management of appraisal processes. Discussions were also held around a proposed pipeline of projects for financing and a priority sector matrix for projects was developed. In addition, the AFP secretariat housed in the Private Sector Department of the Bank (OPSM) which Canada is specifically supporting from the grant coordinated the development of a joint DFI action plan to respond to the financial crisis and its potential impact on financing the private sector in Africa.
The partners are keen to start co-financing projects under the AFP and experiences drawn from the following collaborative projects will be useful: the Cabeolica Wind Power, Cape Verde; Sendou Power Project, Senegal; Dakar Airport, Senegal; Enfidah Airport, Tunisia; Main One Cable, Nigeria; Helios Towers, Nigeria; Investment Fund for Healthcare in Africa (IFHA) and Equity Vehicle for Health in Africa (EVHA). AFP has thus played a critical role in leveraging private sector financing whose expected outcomes are increased economic growth and investment in the RMCs in energy; tourism and trade; telecommunications and innovative health solutions in Africa.
Approved: CAD 230,620 (CAD 144,643 or 62% of the grant disbursed)