export_development

Under this Programme, the Bank combines credit, risk bearing, twinning, market access as well as advisory services geared towards creating non-commodity export products for sale to a broad range of export markets.

Objectives:
The Bank’s EDP is aimed directly at:

  • facilitating non-commodity export production, especially export manufacturing, targeted at exploiting certain bilateral and multilateral market access opportunities open to Africa, e.g., the African Growth and Opportunity Act (AGOA) of the US Government, the EU/ACP Accords as well as similar initiatives involving Africa and India; and Africa and China, amongst other initiatives;
  • promoting non-commodity export production, especially export manufacturing targeted at exploiting intra-African trade opportunities;
  • fostering the implementation of regional projects, including tradable infrastructure services; and
  • boosting the “technological” content of export production and assisting the generation therefrom of “branded” exports, that will assist in “de-commoditizing” African exports.

Instruments:

Instruments used in implementing the EDP include:

  • Limited Recourse Project Finance products whereby funding or guarantees are provided to qualifying projects using a financing structure that minimizes construction and operating risks;
  • Twinning and Market Access Services whereby the Bank uses its extensive contacts to foster alliances between project promoters and parties with proven technical and managerial competencies as well as market access capabilities; and
  • Advisory Services through which the Bank may prepare projects for promoters requiring such services, and assist in raising financing for such projects.

Qualifying Projects:
Under the Bank’s EDP, emphasis is on:

  • Projects promoted by companies that have developed a successful local brand and operation and want to enter the international market;
  • Greenfield projects where there are credible and proven technical partnerships (with equity commitments); and
  • Regional projects such as oil pipelines, power projects, etc.

Partnerships:
The Bank implements its EDP using a partnership approach. Such partners include:

  • African, non-African and multilateral Development Finance Institutions (DFIs);
  • African and non-African EXIM Banks;
  • African and non-African banks and venture capital funds;
  • African and non-African governments; and
  • African and non-African corporates.

Eligibility Requirements:
The eligibility criteria for the target group include the following:

  1. Applicant must be an entity with an export experience not less than 3 years in the line of business in question;
  2. The entity must have a minimum business experience of 4 years; and
  3. The entity must be registered in Africa, preferably with significant African shareholding.

Tenor:
Up to 7 years, with up to 2 years grace period.

Pricing:
Funded transactions will attract:

  1. interest, and
  2. fees.

Non-funded transactions will attract fees only.

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