As stipulated recently by the African Development Bank president, Akinwumi Adesina, the bank “is reforming, innovating, leading and delivering more for Africa than ever before.”
In the bank’s latest provision, the Group together with the Regional Council for Public Savings and Financial Markets (CREPMF), signed a grant agreement worth $980,000 for the Support Project Regional Financial Market Development (PADMAFIR) of the West African Monetary Union (WAMU).
The grant agreement letter, signed by Pierre Guislain, Vice-President of the AfDB in charge of the Private Sector, Infrastructure and Industrialisation and Mamadou Ndiaye, President of CREPMF, aims to contribute to the implementation of priority actions of the 2014-2021 Regional Financial Market (MFR) strategic plan.
Speaking at the signing ceremony, Guislain said: “This funding is very important for the WAMU regional financial market. This intervention is part of the efforts of the African Development Bank to strengthen, expand and deepen capital markets by supporting the modernisation of the basic texts of the MFR to bring them more in line with international norms and standards.”
Regional Financial Market
PADMAFIR was structured by the AfDB and CREPMF, in collaboration with the Regional Stock Exchange – Central Depository / Settlement Bank (BRVM-DC / BR), the Professional Association of Management Companies and Intermediation (APSGI), the Association of Management Companies of Collective Investment Schemes in Securities and Property (ASGOP), and the Professional Association of Conservative Account Holders (APBTCC).
The envelope allocated to the resources of the African Private Sector Assistance Fund (APAF) is structured around three components:
Support for the modernisation of the regulatory framework to increase competitiveness and the attractiveness of the market;
Support for capacity building for market dynamism;
And support for project management and coordination through strengthening the institutional framework.
Assistance towards SMEs
This technical assistance includes the launch of the ELITE Lounge BRVM programme, which aims to support and facilitate the preparation of SMEs for access to financing through the stock exchange.
Other priority actions will be taken into account, including support to CREPMF to facilitate the rapid deployment of new products such as securitisation, bond issues for the diaspora and green bond issues.
Clemens Samuda, senior advisor for Austria and representing the Bank’s administrator for Japan today, said: “PADMAFIR is strongly aligned with the areas of intervention FAPA, including the strengthening of financial systems, in particular to develop financial markets and diversify non-bank financial products on the one hand; and promoting the development of SMEs by addressing the challenges of weak business support institutions and limited access of SMEs to commercial financing.”