FAPA 2010 - Annual Report - afdb.org · published its 2009 report and an EPSA movie was produced...

FAPA 2010 ANNUAL REPORT BUILDING CAPACITY FOR PRIVATE SECTOR DEVELOPMENT

Table of Contents

Executive Summary ........................................................................................................................................................ ii

I. Introduction ......................................................................................................................................................... 1

II. Portfolio Analysis ................................................................................................................................................ 1

Number and Volume of Approvals ............................................................................................................................... 1

Distribution per pillar .................................................................................................................................................... 2

Distribution per Originating Department ...................................................................................................................... 3

Distribution per Country Classification ........................................................................................................................ 3

Age of Operations ......................................................................................................................................................... 4

III. Operational and Implementation Status ........................................................................................................... 4

Project identification ..................................................................................................................................................... 4

Project processing to approval ...................................................................................................................................... 4

Procurement .................................................................................................................................................................. 5

Disbursements ............................................................................................................................................................... 5

Monitoring and reporting .............................................................................................................................................. 7

IV. Supervision .......................................................................................................................................................... 8

Completion reports ........................................................................................................................................................ 8

Projects cancelled .......................................................................................................................................................... 8

Outliers and exceptions as of 31 December 2010 ......................................................................................................... 9

Result monitoring .......................................................................................................................................................... 9

V. Finance and Resource Mobilization ................................................................................................................ 10

Donor contribution and utilization of funds ................................................................................................................ 10

New donors and resource mobilization ....................................................................................................................... 11

VI. Communication and Donor Visibility ............................................................................................................. 11

VII. Focal Point and staffing .................................................................................................................................... 12

Human Resources ....................................................................................................................................................... 12

VIII. The Year Ahead ................................................................................................................................................ 13

IX. Annex I: FAPA at-a-Glance ............................................................................................................................. 14

X. Annex II: Interim Results of Selected Projects .............................................................................................. 17

BUILDING CAPACITY FOR PRIVATE SECTOR DEVELOPMENT - FAPA ANNUAL REPORT 2010

ii

Executive Summary

Achievements In 2010

Over the last 5 years, FAPA has approved 35 technical assistance projects for a total amount of $28.8 million. Two

projects were cancelled bringing the total portfolio of active projects to 33 for a total amount of $27.5 million.

The main activities undertaken and results achieved by the Fund for African Private Sector Assistance (FAPA) in

2010 are as follows:

1. Disbursements: Efforts undertaken to improve project implementation and increase levels of disbursements

are showing positive results, with $8.4 million disbursed in 2010, compared to $3.6 million disbursed in 2009.

The overall disbursement ratio was 30.4% versus 25% planned, which means that FAPA achieved 120% of its

planned disbursements. An action plan designed to systematically address all the constraints impacting on

project implementation is being implemented to further improve FAPA disbursements.

2. Supervision: 18% of FAPA projects entered into implementation in 2009 (procurement and first

disbursement) and 45% in 2010 (procurement, first and second disbursement). A big increase in supervision

missions is planned for 2011 to allow time for project execution at the recipient’s end.

3. Donor visibility and PR: FAPA banners were made to be sent to grant beneficiaries. The banner is to be

exhibited at each training, outreach session or presentation of the results of a study financed by FAPA. FAPA

published its 2009 report and an EPSA movie was produced featuring a number of FAPA projects. The movie

and annual reports were distributed to all Bank field offices. A communications strategy will be prepared in

2011.

Conclusions and Way Forward

FAPA is entering a period of transition and change as a result of the transformation into a multi-donor trust fund.

Although FAPA will remain demand driven, there is a need to prepare a five year strategic plan for technical

assistance to support the Bank’s Private Sector Development Strategy. FAPA continues to make admirable progress,

and remains a vibrant Facility that is well focused on addressing private sector development needs within Africa. The

way forward for FAPA over the next year is elaborated in the 2011 Work Plan. A brief summary of the main

principles that will guide activities in 2011 are as follows:

Focusing on strategic planning and refining of operational processes

Ensuring effective and timely supervision of projects having received their first disbursement

Ensuring quality at entry in the development of new projects as well as quality during implementation for on-

going projects

Limiting the number of new project approvals in order to allow FAPA secretariat to focus on project quality

and implementation and supervision concerns

Enhancing TM skills in TA project supervision

Designing a results monitoring framework for FAPA

Documenting and disseminating results and success stories emanating from FAPA projects

Enhancing communications, visibility and outreach in Tunis and in the field offices

Managing human resources and institutional concerns in this period of transition

Mobilizing additional resources for FAPA operations from 2012 onwards.


1

Annual Report

I. Introduction

The Fund for African Private Sector Assistance (FAPA) is a multi-donor, thematic Trust Fund

administered by the African Development Bank with financial contributions from the Governments of

Japan and Austria.

The overarching objective of FAPA is to support the implementation of the Bank’s Private Sector

Development (PSD) Strategy. FAPA resources provide untied grants for technical assistance and

capacity building to governments, regional economic communities and similar intergovernmental

organizations, business associations, market regulatory institutions, business development service

providers, business training and research institutions and public/private enterprises. The specific areas

of focus are in line with the PSD Strategy as outlined below.

This Annual Report has been prepared in fulfilment of the requirements contained in Article V of the

FAPA multidonor agreement for a review of project operations and other activities carried out during

the year. The Report provides a review of the organizational, operational and financial status of FAPA

for calendar year 2010.

II. Portfolio Analysis

Number and Volume of Approvals

As shown in the table below, project approvals declined from ten in 2009 to six in 2010. FAPA

performance during the year was hindered by a lack of human resources in the Secretariat. However, it

is worth noting that there were five projects (a little under $4 million) that had completed internal

review and were pending approval at the end of December 2010.

Year No. of new Projects Volume of new Projects (USD)

2006 2 1 775 000

2007 5 3 755 000

2008 12 9 808 534

2009 10 8 585 217

2010 6 5 058 000

Total 35 28 981 751

The cumulative total (see graph below) reached 35 projects valued at almost $29 million. Two projects

from earlier years were cancelled, bringing the total portfolio of active projects to 33 for a total value

of about $27.5 million.


2

Distribution per pillar

The share of enabling environment projects in the overall portfolio increased from 19% in

2009 to 24% in 2010. Similarly FI projects represented 20% of the portfolio versus 24% in

2010.

$-

$5,00

$10,00

$15,00

$20,00

$25,00

$30,00

$35,00

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

Mill

ion

USD

Nu

mb

er

of

Pro

ject

sCumulative Portfolio by Year

Volume of Commitments (million USD) Number of Projects

24%

15%

34%

24%

3%

FAPA Commitments by Pillar (2006-10)

Enabling Environment

Infrastructure

Micro, Small and Medium-sized Enterprises

Financial Institutions

Trade


3

Distribution per Originating Department

The share of OPSM projects in the portfolio dropped from 86% in 2009 to 77% in 2010,

whereas OSGE increased its share from 4% in 2009 to 7% in 2010 (2 enabling environment

projects).

Distribution per Country Classification

Regional projects increased from 41% in 2009 to 49% in 2010, while LIC projects decreased from

45% to 37%.

OPSM77%

OINF2%

OSGE7%

OWAS3%

OSHD4%

ONRI4%

ONEC3%

FAPA Commitments by Originating Department (2006-10)

Regional Projects

49%

MICs14%

LICs37%

FAPA Commitments by Country Classification


4

Age of Operations

Average age of FAPA projects is 2.04 years or 24.4 months. Most of FAPA technical programmes are

implemented in two to three years, depending on the project.

III. Operational and Implementation Status

Operational processes

Focusing on refining the operational processes is the primary challenge of the FAPA in 2010. The

guidelines will be further refined to serve as an operational manual for Task Managers and Grant

Beneficiaries.

Project identification

FAPA projects enter the pipeline when a Preliminary Evaluation Note (PEN) is approved by OPSM

Department Management Team (DMT). As of December 2010, FAPA had 11 projects in the pipeline

for a total amount of $ 8,670,960.

Country Project Name Pillar

Amount

(USD)

1 Kenya K-Rep Bank MSME 1 000 000

2 Regional E+Co Decentralized Energy Support MSME 1 000 000

3 Guinea GAC SME Linkages MSME 500 000

4 Regional ShoreCap PE Fund MSME 1 000 000

5 Mauritania Mauritania Leasing EE 714 000

6 Niger Kandadji Hydroelectric Program Infra 956 160

7 Senegal APIX Power Infra 1 000 000

8 Botswana Public Enterprise Evaluation and Privatization Agency EE 800 000

9 Regional Summit Development Group MSME 1 000 000

10 Regional Environmental Training for Regional FIs & MFIs FI 700 800

11 Regional Equity and Guarantee Fund For agribusiness EE 800 000

Project processing to approval

As illustrated in the graphic below, 2009 saw significant reductions in FAPA processing delays,

especially from approval to signing and from effectiveness to the first disbursement. The delay from

approval to signing increased in 2010 because of projects linked to investments that had not been

finalized due to legal or financial issues (Banque Congolaise de l’Habitat, Microcred Cote d’Ivoire,

Banque de Kigali, and Banque Rwandaise de Développement).


5

Procurement

Ten projects out of the 33 in the portfolio (30%) experienced delays due to the recipients non

familiarity with Bank’s procurement rules. Two workshops were organized for two projects (BDEAC

and SNIM). A decision has been taken to organize launching sessions for recipients unfamiliar with

Bank’s procurement rules, with the assistance of the AfDB field offices and the procurement

department.

Disbursements

Reasons observed for disbursement delays are mainly the procurement process, the issuance of the

letter of comfort by the bank of the recipient and the fulfillment of conditions precedent. The FAPA

Secretariat is working closely with GECL and FFCO to find a solution for future grants.

In 2010, fifteen projects made their first or second disbursement. Efforts were undertaken to improve

projects disbursements delays by increasing assistance to Task Managers, working more closely with

FFCO and to provide more assistance to recipients on the procurement and disbursement process.

As a result, the portfolio disbursement rate has improved from 15.33% in 2009 to 30.41% in 2010.

Year Commitments

($)

Cumulative

commitments ($)

Cumulative

disbursements

($)

% Effective Number of

disbursing

projects

2006 1 775 000 1 775 000 - - -

2007 2 755 000 4 530 000 - - -

2008 9 475 884 14 005 884 541 708 3.86% 2

2009 8 585 217 22 591 101 3 463 697 15.33% 7

2010 5 058 000 27 649 101 8 408 261 30.41% 15

0

6

12

18

24

2007 2008 2009 2010

Mo

nth

sProject Processing Time Between Milestones

First Disbursement

Effectiveness

Signing

Approval


6

$13,5

$18,9 $19,2

$0,5

$3,7 $8,5

$-

$5,0

$10,0

$15,0

$20,0

$25,0

$30,0

2006-8 2009 2010

USD

Mill

ion

Outstanding vs. Disbursed Commitments Over Portfolio Lifetime

Disbursed Commitments

Outstanding Commitments


7

Monitoring and reporting

All the projets managed by OPSM have been compliant with the reporting requirements except Access

Bank Tanzania (ABT), PTA, African Business Roundtable and Access Bank Nigeria (ABN). These

projects will be supervised in 2011.

The FAPA secretariat has designed a Beneficiary Quarterly Report and prepared a process checklist

for Task Managers and Grant Recipients.

2010

Comments Today's Date PSR Supervision

5/13/2011 Q1 Q2 Q3 Q4

Regional Franchising X X X X

To be supervised in 2011

OMVG X X X X X

EASSy

Completed

EADB X X X X

GOWE X X X X X

Shelter Afrique X X X X

Advans Congo X X X X X

BOAD X X X X

Rosso Bridge

X

CPs not met

PTA Bank


Access (Microfinance) Bank Liberia X X X X X

CRDB X X X X

RPSF X X X X

ABR


Zambia SME X X X X

Central Africa IT Backbone x X X X

CPs not met1

EITI Madagascar

To be cancelled

FSSP X X X X X

PFSL X X X X

ATMS/AMSCO X X X X

Zaarat Desal

Not effective

ABT

X X


ABN


BCH

X X

Not signed, equity not finalized

ATI X X X X

SNIM (2) X X X X

ACSP X X X X

BDEAC X X X X

RIEEP

Not signed

ADBF

Signed on 16 December 2010

MIC

X X

Not signed, equity not finalized

IFHA

X

Not signed

EITI Mozambique

Signed in October 2010

1 First phase of TA project has not been completed. FAPA resources finance the second phase, which will

commence upon conclusion of the first phase.


8

IV. Supervision

Two projects were supervised in 2010, Access Bank Liberia and GOWE Cameroon. More supervision

will be done in 2011 as most of the projects will have achieved their first disbursement by then. 18%

of FAPA projects entered into implementation in 2009 (procurement and first disbursement) and 45%

in 2010 (procurement, first and second disbursement).

OPSM projects are managed by the originating Task Manager up to the first disbursement. After the

first disbursement projects are transferred to Portfolio Managers in OPSM5. In order to ensure a

smooth transfer to OPSM5, each FAPA project is assigned an originating Task Manager and a

Portfolio Manager normally from the field office where the project is located. Supervision tools and

documents for Task Managers and Portfolio Managers are being prepared.

An Annual Supervision Report (ASR) template will be designed to assist Task Managers. Each FAPA

project has been allocated a portfolio manager who is in charge of the project after the first

disbursement. Staff from the field offices will be involved The objective in 2011 is to supervise all the

projects having fully utilized their first disbursement and to build the capacity of portfolio managers in

the supervision of TA projects.

Completion reports

The first two projects are completed: EASSy and OMVG. Completion reports are to be received in

2011.

Projects cancelled

The following two projects were cancelled in 2010:

Ghana export oriented SMEs ($1 million, approved 2007). The objective of this project was to provide

Technical Assistance to Ghanaian Small and Medium Enterprises (SME) with high potential to export

Non-Traditional products. FAPA resources were to be used to provide TA and training specifically

intended to close the identified gaps and mitigate institutional weaknesses of SMEs. This project was a

complement to an AfDB Partial Credit Guarantee Scheme of $25 million to Barclays Bank Ghana

(BBG). The project was cancelled in August 2010 for the following reasons:

i) No progress was registered after signature and there were indications that BBG

performance had deteriorated; and BBG did not pay the origination fee as provided under

the agreement.

ii) The asset quality deteriorated from around 2.5% in 2007 to 8%, in 2008. This was due to

increased impairment charges (increased sevenfold, from GHc 5.5 m 0.8% to GHc 46.9M

in 2008), staff costs and administrative costs because of its branch expansion

network. The returns on equity reduced to -6.0% in 2008 from 32.2% in 2007;

iii) The Bank senior management changed, the new team was more focused on consolidating

their operations in Ghana in order to realize returns from the network expansion;

iv) There were indications that BBG was moving cautiously in their SME program instead of

expansion which was contrary to the project objectives; and

v) The changes in senior Management of BBG, including a new CEO, and in the team that

was originally mandated to manage the project.

Strengthening Tunisia Accounting Profession ($332,650, approved 2008). The objective of the project

was to prepare a national strategy for upgrading the chartered accountant profession in Tunisia. The

project was cancelled in March 2010 for the following reasons:


9

(i) The bid to select the consultant to conduct the study and implement the TA program was

unfruitful.

(ii) The Management of the Accounting Profession changed and wanted to modify

substantially the design and objective of the TA. They were requested to submit another

proposal.

Outliers and exceptions as of 31 December 2010

Project Name Action Plan

Signature Delays

EADB Waiting for the SP approved by the Board to update the FAPA

proposal and submit it to the TC and OC.

BCH

Issue of compliance with legal due diligence for our equity

investment which is linked to the TA. GECL to advise on the

way forward.

BDEAC Effectiveness and first disbursement in progress. Delays due to

the capacity of the grant recipient.

First Disbursement

Delays FSSP Launching mission to be done in March 2011.

Cancellable PTA Bank Closing date extended 1st December 2011.

All these projects are closely monitored and do not present any major threat.

Result monitoring

A result monitoring framework will be finalized by end 2011 with the support of OPSM result

monitoring Head Officer. A mission is planned in 2011 to PEP AFRICA and AMSCO to study their

technical assistance results monitoring tool.

Two projects were completed by end 2010, EASSy and OMVG. An overview of interim results for

selected projects having disbursed more than 50% of their grant is presented in Annex II. The results

of the entire portfolio will be captured in the result monitoring framework to be produced in 2011.


10

V. Finance and Resource Mobilization

Donor contribution and utilization of funds

STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2010

(Expressed in USD)

Contributions

Initial contribution

10 000 000

Second contribution

10 000 000

Third contribution

10 000 000

Fourth Contribution

2 000 000

Total Donor contribution

32 000 000

ADB Contribution from Net Income (UA 5,000,000) 7 575 350

ADB Contribution from Net Income (UA 2,000,000 ) 3 070 320

10 645 670

Total contribution

3

42 645 670

Add: Interest & Investment Income

4

1 652 513

Total resources

44 298 183

Less: Disbursements

5

Administrative expenses component

(1 134 451)

Projects support component

(8 408 261)

(9 542 712)

Funds available

34 755 471


11

New donors and resource mobilization

As of October 2010, FAPA became multidonor with the entrance of Austria. A multidonor framework

agreement was signed. FAPA guidelines will be revised accordingly. The objective in 2011 is to spend

the resources available. Donor mobilization will be a focus in 2012/2013.

VI. Communication and Donor Visibility

In 2009, the FAPA team organized three signing ceremonies, one in Kenya for Shelter Afrique, and

two at the annual meeting in Istanbul for ABR and ATMS/AMSCO.

In 2010, nine signing ceremonies were organized for ABT in Tanzania, ABN in Nigeria, Tunisia

desalination and ACSP in Tunis, Zanaco in Zambia, RIEEP in Egypt, EITI in Mozambique and ATI in

Kenya. BDEAC was signed at the annual meeting in Abidjan. Press releases and pictures are available

at the FAPA Secretariat.

ABT signing ceremony. ABN signing ceremony.

BDEAC signing ceremony at AfDB annual meetings in Abidjan.


12

An EPSA movie was prepared and the CDs were distributed to all the field offices along with the

FAPA 2009 annual report. Below are some pictures extracted from the movie:

Alex Mizim in front of his bakery oven

In Duala Market (Access Bank Liberia client)

Loan officers in training at Access Bank Tanzania

A successful school project supported by Pulse in Zambia

VII. Focal Point and staffing

Human Resources

One of the main challenges currently faced by FAPA is the lack of full time staff to run the trust fund,

to ensure quality at entrance of projects, to assist in the project implementation and supervision, and

finally to monitor results and increase the donor’s visibility. The performance of FAPA in 2010 was

hindered by the lack of permanent human resources. A decision was made by OPSM to recruit in

2011 a Chief Technical Assistance Officer. The growing portfolio requires more human resources for

project origination and appraisal, for supervision and monitoring and for PR and donors’ visibility

(success stories and lessons learnt publications, PR organization, PR documents, and participation to

African stakeholders’ events for FAPA outreach). The biggest challenge facing the FAPA Secretariat

going into 2011 is the urgent need to mobilize internal and external resources to employ additional

staff and consultants to manage the existing portfolio and allow for continued growth.


13

VIII. The Year Ahead

In 2011, FAPA will focus on the following objectives:

Prepare a strategic planning and refining of operational processes

Ensure effective and timely supervision of projects having received their first disbursement

Ensure quality at entry in the development of new projects as well as quality during

implementation for on-going projects

Limit the number of new project approvals in order to allow FAPA to focus on project quality

and implementation and supervision concerns

Enhance TM skills in TA projects supervision

Design a result monitoring framework for FAPA

Document and disseminating results and success stories emanating from FAPA projects

Enhance communications, visibility and outreach in Tunis and in the field offices

Manage human resources and institutional concerns.

In order to achieve these objectives, it will be necessary to secure additional human resources to

reinforce the FAPA Secretariat.


14

IX. Annex I: FAPA at-a-Glance

Country Project Name Approval

Date Amount

Disbursement

% Short Objective/Description

Regional Regional Franchising 22-Jun-2006 $975,000 26% To contribute to the stimulation of economic growth and job creation in the SME sector through the

advancement of franchising in Africa.

Regional Gambia River Basin

Development (OMVG) 22-Jun-2006 $800,000 100%

To finance the services of an Advisory Mission to propose to the Authorities of the Gambia River Basin

Development Organization (OMVG) a public-private partnership (PPP) option to optimize the implementation

of three power projects. Co-financed with NEPAD IPPF.

Regional East Africa Submarine

Cable System (EASSy) 31-May-2007 $275,000 52%

To structure the Special Purpose Vehicle (SPV) of the EASSy project for development of an optical fibre

submarine cable network for the eastern seaboard. Co-financed with NEPAD IPPF.

Regional

East African

Development Bank

(EADB)

27-Dec-2007 $1,000,000 To strengthen EADB’s capacity to contribute to regional integration of EAC Member states and promote more

effectively the development of the private sector, particularly SMEs.

Cameroon

Growth-Oriented

Women Entrepreneurs

(GOWE)

27-Dec-2007 $530,000 100% To provide integrated support for women’s enterprises development in Cameroon.

Regional Shelter Afrique (SHAF) 27-Dec-2007 $950,000 57% To improve access to housing, develop medium-sized housing development companies, promote economic and

social development and create employment in beneficiary countries.

DRC Advans Congo 4-Feb-2008 $940,000 53% To build the capacity of Advans Congo Bank, a newly established micro-finance institution specializing in

providing commercial retail banking services to the urban-based MSME market of the Democratic Republic of

Congo.

Regional

West African

Development Bank

(BOAD)

4-Feb-2008 $953,000 6% To prepare the Accounting Procedures Manual and assist with software selection, acquisition, implementation,

migration and staff training.

Regional Rosso Bridge 4-Feb-2008 $1,000,000 To finance the feasibility study for a bridge over the Senegal River between Mauritania and Senegal to facilitate

regional integration and international trade. Co-financed with NEPAD IPPF.

Regional PTA Bank 24-Mar-2008 $1,000,000 40% To implement the new risk management framework and further enhance the PTA Bank’s capacity and growth.

Liberia Access Bank Liberia

(ABL) 5-Nov-2008 $1,000,000 70%

To build the capacity of Liberia Access Bank, a newly established micro-finance institution specializing in

providing financial services to micro and small enterprises in Liberia.


15


Date Amount

Disbursement


Tanzania CRDB 5-Aug-2008 $975,300 23% Capacity building of CRDB Bank and SME clientele to enhance implementation of joint AfDB-USAID SME

Guarantee Facility.

Rwanda Private Sector

Federation (PSF) 27-Aug-2008 $1,000,000 60%

To enhance RPSF execution capacity and governance and support execution of a number of core mandate

activities including business information (resource center, magazine, radio programs), MSME competitiveness

(BDS centers, mini-exhibitions), special entrepreneurship programs for women and youth, and public-private

sector dialogue.

Regional Africa Business

Roundtable (ABR) 10-Nov-2008 $500,000 40%

To assist the ABR, as a second tier ('association of associations') private sector representative organization for

Africa, to perform a number of core functions that will contribute to strengthening the private sector in Africa.

Zambia Zanaco 10-Nov-2008 $980,824 Strengthening of Business Development Services (BDS) providers and SME associations, in collaboration with

AMSCO through International Labor Organization (ILO) and International Trade Center (ITC).

Regional Central Africa IT

Backbone 8-Dec-2008 $501,760

Finalize the pre-investment studies and prepare the project for implementation (technical and environmental

studies, harmonization of national and regional ICT legislation); establish a PPP operation for the

implementation, operation and maintenance of the CAB project. Co financed with NEPAD IPPF.

Madagascar Extractive Industries

Transparency Initiative 22-Dec-2008 $625,000

To support implementation of the Extractive Industries Transparency Initiative (EITI) for improved governance

in Madagascar’s extractive industry.

Egypt Franchising Sector

Support Program 13-Apr-2009 $950,000 50%

To provide technical assistance to the Egyptian Social Fund for Development (SFD) and to various stakeholders

in the Franchising Program.

Zambia Pulse Financial Services

Limited 25-May-2009 $935,000 53%

To enhance capacity of a greenfield microfinance bank that offers fully diversified financial services to

MSMEs.

Regional

African Training and

Management Services

Project

(ATMS/AMSCO)

29-May-2009 $1,000,000 100% To fund phase IV of the ATMS/AMSCO project to enhance management training and capacity building for

African MSMEs through provision of experienced managers on a commercial basis to African companies

Tunisia Zaarat Desalinization

Study 5-Aug-2009 $962,638

To perform a feasibility study and create a concession agreement for the operation of a sewater desalinization

plant to serve the Gafsa/Gabes region (not the same as the Djerba Desalinization project)

Tanzania Access Bank Tanzania

(ABT) 5-Aug-2009 $660,000 55%

To provide management and software training/implementation for an already established Access/LFS model

MFI in Tanzania

Nigeria

AB Nigeria

Microfinance Bank

(ABN)

1-Sep-2009 $1,000,000 40% To establish a Greenfield MFI in Nigeria based on the Access/LFS business model


16


Date Amount

Disbursement


Congo Banque Congolaise de

l'Habitat (BCH) 18-Sep-2009 $178,579

To provide training to enhance the quality and range of products offered to develop formal housing markets in

Congo

Regional African Trade Insurance

(ATI) 22-Oct-2009 $1,000,000 45%

To assist the African Trade Agency to strengthen its corporate government, to implement an appropriate

underwriting system, to strengthen the information communication system and to attract private equity.

Mauritania Mauritania Mining

(SNIM) 22-Oct-2009 $989,000

To assist SNIM in strengthening its institutional capacity in the implementation of its environmental

Management system and its Strategic Environmental and Social Management Plan.

Regional African Carbon Support

Program (ACSP) 27-Nov-2009 $910,000

To create a carbon trading and CDM preparation team of experts within the Bank's private sector project

origination for the benefit of the Bank's clients to take advantage of carbon trading

Regional

Central African

Development Bank

(BDEAC)

5-Feb-2010 $1,000,000 To make BDEAC a reliable partner in strengthening the regional financial market, promoting long-term

financing of infrastructure projects, and advancing regional integration objectives

Egypt

Rural Income &

Economic Enhancement

Project (RIEEP)

5-Feb-2010 $1,000,000

To enhance value chain development for two select commodities (horticulture and dairy); increase capacity of

participating financial institutions (PFIs) to provide long-term credit for agribusiness investments in a

sustainable manner; and develop policy briefs with a view to influencing the development of a coherent national

private sector-led agribusiness development policy

Regional African Domestic Bond

Fund (ADBF) 5-Feb-2010 $985,000

To create a bond fund that will invest in local currency denominated sovereign bonds, including sovereign

guaranteed bonds of state owned enterprises in African countries.

Cote d'Ivoire Microcred Ivory Coast

(MIC) 16-Apr-2010 $1,000,000 To assist a MicroCred (MFI operator) to create a greenfield MFI in Cote d'Ivoire

Regional Investment Fund for

Health in Africa (IFHA) 1-Jul-2010 $723,000

To help portfolio companies improve their compliance to environmental safeguards and social outreach and to

undertake studies on behalf of IFHA to monitor and evaluate its development impact and outreach.

Mozambique Extractive Industries

Transparency Initiative 1-Jul-2010 $350,000 100%

To enhance transparency in extractive industry in Mozambique through communications programs, training and

monitoring studies


17

X. Annex II: Interim Results of Selected Projects

Project Name Objective Expected results Achieved as of end 2010 Comments

OMVG

$1,000,000

100%

disbursed

To finance the

services of a legal

advisor to

structure a PPP for

the construction

and

implementation of

two power plants

Kaleta and

Sambangalou

1. Review of ongoing studies and policies

2. Propose one or more PPP options

3. Assist in the selection one or more private

operators

4. Assist in the negotiation of private agreements

1. Completed successfully


3. Not completed

4. Not completed

The project experienced cost overruns due Heads of

state delay to approve the PPP option and to the

implementing agency weak capacity. Activities 1 and 2

were delivered. Activities 3 and 4 are still pending. All

the documents for the bidding process were delivered.

OMVG is seeking additional resources to finance a

legal advisor to assist in the bidding process and in the

selection of the private operator.

EASSy

$275,000

52%

disbursed

Recruitment by

DFIs of a lender’s

legal counsel to

structure the SPV

and complete the

legal and financial

due diligence for

the

implementation of

the EASSy project

1. Due diligence

2. Financing documents including security

documents

3. Closing and post closing matters




Remaining balance of the TA to be transferred to

FAPA account after completion of the PCR The SPV

was successfully created. The Bank provided a senior

loan of $14.5 million representing about 12.5% of the

total project cost. The first disbursement was made in

2008.The EASSy project comprises the construction of

a submarine fibre-optic cable along the east coast of

Africa to connect 20 coastal and land-locked countries

to each other and to the rest of the world. The project’s

total cost was estimated as $235 million

Shelter

Afrique

$950,000

57%

disbursed

To strengthen

SHAF capacity

and diversify its

products

1. Market profiling and strategy development,

2. Housing policy dialogue and

3. Training of small developers.

1. Feasibility study on the establishment of private

equity fund for housing and real estate in Africa

completed. Fund manager selected. Resource

mobilization ongoing.

Selection of a firm for a feasibility study for the

establishment of a mortgage institution in Nigeria

completed. Study to start in January 2011.

2. Procurement for the feasibility study on the

establishment of social housing programs in

African countries is completed.

3. Selection of the consultants to provide technical

assistance and capacity building to SHAF small

developers in portfolio in progress.

Advans

Congo

$940,000

53%

To create a

microfinance

institution

1. 945 outstanding loans

2. 1,562 depositors of which 50% are omen

3. PAR> 30 days: 5%

4. MIS operational

5. number of staff recruited 51

6. number of branches added 1

1. 1,826 outstanding loans

2. 5336 depositors of which 55% are women

3. PAR> 60 days: 3.6%

4. MIS operational

5. 109 staff recruited

6. 2 branches added

Overall project on track.


18


disbursed

Rwanda

Private

Sector

Federation

$ 1,000,000

60%

disbursed

To strengthen PSF

capacity

1. Open 5 BDS centers

2. 8 study tours for BDS & PSF staff

3. 3 BDS outreach campaigns organized

4. 3 min exhibitions and network events organized

5. Organize entrepreneurship training programs to

transform innovative ideas in Business Plans

6. Acquire 5 tailored training tools and training of at

least 10 trainer

7. Training of at least 60 entrepreneurs in business

planning, financial marketing management

8. Technical assistance for 5 SMES per year

9. Establish an appropriate technology demonstration

center

10. Build ICT awareness through a mobile ICT Van

11. Facilitate special programs for youths and women

12. Training of 40 chambers and business association

leaders

13. Training for General Secretariat staff and

members

1. 9 BDS opened

2. 5 study tours organized

3. 4 BDS outreach campaigns organized

4. 10 mini exhibitions and 6 networking events

organized

5. 157 business plans delivered, 73 SMEs created

6. 9 training modules acquired, 40 BD staff and 24

trainers trained

7. 11 trainings organized in 19 districts for 576

trainees and 160 business associations leaders

8. 8 women running struggling businesses assisted

(ongoing)

9. Co financed with the government of India who

never disbursed. Project not started.

10. ICT Van availed some times by the Rwandan

Development Board. PSF to find another

alternative.

11. Participation of 200 women to a regional

roundtable, selection of 12 youths in a Business

Plan competition, organization of one youth

business breakfast.

12. 120 leaders trained in advocacy and 50 members

in corporate governance

13. 2 long term trainings for executive management

and 6 executive MBA classes are held.

Total number of BDS is now 22. PSF intends to open 8

other BDS in 2013.

In 2010, 50 supported businesses have added value to

their products and are more profitable.

PSF has prepared a result monitoring tool and will

measure key performance indicators in 2011.

Pulse

Financial

Services Ltd

$935,000

53%

disbursed

To assist the

transformation of

Pulse into

becoming a

microfinance

institution

1. 3,051 active loans

2. $ 1, 278, 082 outstanding credit portfolio

3. 5,046 depositors

4. 8 branches added

5. 8 branches runned by local staff

6. PAR>30 days 3.16%

1. 1,123 active loans

2. $ 2, 568 outstanding credit portfolio

3. 5,582 depositors

4. 8 branches added

5. 8 branches managed by local staff

6. PAR>30 days 1.40%

1. Decrease in active loans due to a change in target

market decided by the board. Consumer /Salary

loans were abandoned for home improvement

loans targeting SMEs.

2. Performance due to new lending methodology and

change in target market contributed to a better

market penetration in terms of volume.

Access Bank

Tanzania

$660,000

55%

disbursed

To create a

microfinance

institution

1. PAR>30 days 2%


3. Credit portfolio in Euros 5,914,342

4. Deposits in Euros 3,552,118

5. 19,432 active deposit clients

6. 87 loans officers

7. 6 branches opened

8. 4 branches managed by local staff

1. PAR>30 days 2.88%


3. 7,788,698 Euros in credit portfolio

4. Euros 5,536,462 deposits, over target.

5. 45117 active deposit clients of which 33% of

women.

6. 92 loan officers of which 22.8% of women

7. 5 branches opened

1. Temporary surge of PAR due to micro loans non

repayments and under performance of loan

officers. A recovery unit has been created and

branch supervision increased.

2. Due to PAR deterioration and high staff turnover,

management has decided not to roll over a large

number of maturing loans.

3. Over target


19


9. Pretax profit Euros 74,643 8. 5 branches managed by local staff

9. Pretax profit 11,233 Euros

4. Over target due to introduction of ATMS

5. Over target

6. Over target

7. Below target. Opening of the 6th branch delayed

until July 2011 to achieve operational profitability.

8. Above target

9. Below target due to introduction of ATMS at an

early stage of existence.

FAPA 2010 - Annual Report - afdb.org · published its 2009 report and an EPSA movie was produced...

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