AfDB Approves $300million For COMESA

The African Development Bank (AfDB) has approved $300million in support for the Common Market for Eastern and Southern Africa (COMESA) as part of efforts to support the expansion of economic and regional development.

The support package, which is to provided to the Eastern and Southern African Trade and Development Bank (TDB) encompasses a composite funded trade finance and project finance facility, and an unfunded trade finance risk participation agreement (RPA). 

According to Bank director for financial sector development Stefan Nalletamby the RPA will benefit at least 43 institutions across 15 member countries and is projected to catalyse up to $2billion in trade over three years. The project finance component is aimed at supporting the delivery of export-orientated infrastructure so as to boost trade in the region.

In a statement setting out the decision the Bank states, The project is well aligned with the Bank’s ten-year strategy and cuts across several High 5 priority goals; Integrate Africa, Industrialise Africa, and Improve the quality of life for the people of Africa.  It is also in line with the Bank's operational priorities for the financial sector development strategy, which promotes increasing access to finance for small and medium-sized enterprises as well as widening and deepening African financial markets.”