The Board of the African Development Bank (AfDB) has approved the institution’s 2019 borrowing program to the tune of US$7.24 billion to be raised from the capital markets.

AfDB accesses a wide array of capital markets with the majority of its borrowing in US dollars and Euros as well as issuances in other public markets such as Australian dollars and Pound sterling.

The Bank maintains an active presence in the socially responsible investment arena and continues to be a regular issue of Green and Social Bonds. These products serve to satisfy increasing demand for impact investment but also allow the Bank to highlight its development mandate and promote sustainable and inclusive growth.

The Institution has also used its ‘High 5’ operational priorities as a platform to continue the issuance of theme bonds, including an inaugural ‘Integrate Africa’ bond, a ‘Feed Africa’ bond awarded Asia Pacific Deal of the Year by mtn-i, more than forty ‘Improve the Quality of the Life for the People of Africa’ bonds, and two taps of its ‘Light Up and Power Africa’ bond.

The Bank is keen to innovate to diversify its product range and, as the financial markets continue to look to a future after Libor, was able to combine innovation with its social responsibility program and issue the first ever Green SOFR-linked bond, in November.

The African Development Bank will continue to promote the development of African Capital markets with the issue of local currency denominated debt to facilitate the financing of its local currency operations, alongside other initiatives.

“We continue to raise our profile in the capital markets to provide cost-effective resources to finance projects and programs on the African continent. We have a strong track record, a diversified funding profile, investors across the world and the benefits of a AAA rating to strongly support the African Development Bank mandate,” the Bank’s Treasurer, Hassatou N’Sele said.

The African Development Bank is rated triple-A by all the major international rating agencies and enjoys several solid ESG (Environmental Social and Governance) ratings.

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South Africa has deposited the instrument of Ratification of the EAC-COMESA-SADC Tripartite Free Trade Area (TFTA Agreement) bringing the number of countries that have done so to four. The other countries that have ratified and deposited the instrument are Uganda Kenya and Egypt.

The handover ceremony of the instrument of ratification took place in Cairo, Egypt on the margins of the African Ministers of Trade Meeting at Al Manara International Conference Center. South Africa’s Minister of Trade and Industry Rob Davies handed over the ratification to the current Chairperson of the EAC-COMESA-SADC Tripartite Taskforce (TTF) Ms Chileshe Kapwepwe, who is the Secretary General of COMESA.

Minister Davies described the TFTA as an explicit development integration framework that will not only address trade but will also deal with significant barriers to trade that need to be resolved in turn increase intra-Africa trade.

“We as South Africa are delighted to be depositing this ratification instrument because we believe it is good for the country, region and entire continent. We need to trade more amongst ourselves without any barriers,” Minister Davies added.

He said the South African Parliament had ratified the instrument for the TFTA in order to open up the country to better and bigger opportunities which the Agreement will offer.

Davies noted that the TFTA will help the EAC-COMESA-SADC region address issues concerning removing barriers to trade, having adequate infrastructure and developing appropriate production structures.

Chairperson of the TFTA Taskforce Ms Chileshe Kapwepwe commended the government of South Africa for being the first SADC country to ratify and deposit the TFTA Agreement. She said the TFTA offers a bigger market and it will enable countries to trade more duty free a move that will increase
the levels of intra-Africa trade.

“It is therefore a day of celebration as we witness the deposition of the instrument of ratification by the Republic of South Africa and I can only urge the remaining countries to follow in these steps and ratify as
soon as possible,” Ms Kapwepwe added.

She revealed that six more countries will soon ratify the Agreements paving the way for the region to have ease movement of goods, services and people.

The TFTA was launched in June 2015 with the aim of bringing together, in one common market, countries in the three regional economic blocs namely the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community(SADC).

For the TFTA to enter into force, fourteen signatures and fourteen ratifications are needed. So far the taskforce has received 24 signatures and the Ratifications now become four.

The tripartite FTA brings together a population of 700 million people with an estimated Gross Domestic product of well over US $1.4 trillion.

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