The development financial institutions

The European bilateral DFI's

• these DFI's are: : ADA (Austria), BIO (Belgium), CDC ( Great Britain), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (The Netherlands), NORFUND (Norway), PROPARCO (France), SIFEM (Switzerland),SIMEST (Italy), SWEDFUND (Sweden).

The African and European regional DFI's

The African regional DFI's

The African Development Bank Group:

• the AfDB is a multilateral development bank supportedby 77 countries from Africa , North and South America, Europe and Asia.

• It consists of three institutions: the AfDB (African Dévelopment Bank), The ADF (African development Fund) and the NTF (the Nigeria Trust Fund)

The Guarantee Funds :

• The FAGACE - African Development and Economic Cooperation Fund (ADECF)

• The FSA - African Solidarity Fund (ASF)

The African DFI's per sub-region:

• Northern Africa: no public regional DFI identified for this part of the continent, apart from the IsDB, Islamic Development Bank, promoting economic development and social progress of Muslim coutries, largely covering Northern Africa's territory.

• Western frica : the BOAD.

• Central Africa : the BDEAC.

• Austral and Eastern Africa: the PTA bank, Eastern and Southern African Trade and development Bank

• Southern Africa : the DBSA.

The european regional DFI's :

The CDE - Centre for the development of enterprise (only technical assistance)

• Founded in 1977, called "Centre for the development of Industry" at that time; the CDE is a joint ACP-EU organisation, based in Brussels.

• The CDE helps ACP entreprises to improve their competitiveness and stimulates partnerships between european and ACP entreprises

• It provides ACP entreprises and associations of entreprises advice and technical assistance before, during and after the investment phase. For instance, feasability studies, personnel training or restructuring aid programs can be undertaken.

• CDE has created several decentralised units in the ACP- countries in order to allow quicker interventions, better use of local expertise and easier access to assistance for small entreprises. ( See attachment for contact information)

The EIB: European Investment Bank (financing):

• The EIB, EU institution created by the Treaty of Rome in 1958, finances investment projects contributing to archieve the big objectives of the EU.

• It participates to implement EU cooperation policy with third countries that have entered with the latter into cooperation or association agreements.

• The Bank loans are actually granted within the Investment Facility mechanism (IF) framework created pursuant to the ACP- EU partnership agreements signed in Cotonou in June 2000.

• The EIB helps financing small- or medium size projects (investment costs lower than €10 millions) and small - or medium size entreprises in an indirect way; through long- term credit lines granted to the local commercial banks, eager to bring medium or long- term financing to the private sector.

The multilateral DFI: The World Bank group

The IFC - International Finance Corporation

• Created in 1956, the IFC promotes sustainable private investments aiming at reducing poverty and improving the living conditions of the populations.

• Just like other DFI's, IFC's specific intervention for SME/VSE from DC's (developing countries), aim essentially at improving their access to local financing.

o by investing in local IFI (see the third part of the guidebook)

o by reinforcing their capacity to present an acceptable file for banks, via the development of, or participation in local technical assistance programs. This can also be archieved by putting appropriate tools at disposal ( for instance, the "SME toolkit" - see "special tools offered by some DFI's in the second part of the guidebook).

• By offering venture capital and technical assistance to SME's trough its " SME venture Program" wich is aperationnal in the following African countries: Sierra Leone, Liberia, drc and in the Central African Republic.

• by supporting the local private sector development, improving this way the business climate.

• The nature of the economic activities financed by the IFC should meet some environmental and social criteria. (http://www.ifc.org/ifcext/sustainability.nsf/content/IFCExclusionList)

The MIGA - Multilateral Investment Guarantee Agency

• Created in 1988, the MIGA promotes foreign direct investment (FDI) in emergent economies in order to support economic growth, reduce poverty and improve the population's quality of life: actually, Africa represents more than one third of the project financed by the MIGA.

• The MIGA encourages investments aimed at development in markets where traditionnal investors and insurers are generally suspiscious.

o It ensures, amongst others, investment against political risks such as expropriation, breach of contract, wars and civil unrest (see chapter "Insurance of risks related to investments abroad" in the second part of the guidebook)

o It settles the litigations about investments related to the projects it is coveringelle règle les litiges en matière d'investissements en lien avec les projets qu'elle couvre;

o it helps DC's to draw and maintain private investors.