MARKET DEVELOPMENT

• Expanding regional trade and project finance: TDB unlocks capital to companies by extending dedicated lines of credit for project and trade finance, as well as through on lending via financial intermediaries, and dedicated programs. FinDev Canada’s loan will enable TDB to catalyze further impact driven capital in the COMESA region, especially in agribusiness, infrastructure, and energy sectors. By offering tailored trade financial services to these sectors TDB helps unleash their access to capital and markets and strengthen inter  and intra regional trade, thus allowing the sectors to realize their potential for the social and economic benefit of local populations. 
• Increasing employment and local market development: The transaction is expected to contribute to the local economies, especially in low income countries, through taxes and salary payments. Over the years, TDB has supported the creation of over a million of jobs, including for women. 
   

WOMEN’S ECONOMIC EMPOWERMENT 

• Addressing barriers faced by women entrepreneurs in accessing funding: In 2018, TDB set up a dedicated US$2.7M facility (SME Program) to provide loans, mezzanine financing, guarantees, and accompanying grants to financial intermediaries in East Africa, with a focus on women and youth led businesses. TDB’s financing and guarantees are particularly important for the small and medium enterprise (SME) sector, which is underserved by commercial banks or microfinance institutions. With the facility pilot considered a success, a much broader, program with increased funding is envisaged for rollout in the coming years. Separately, the Bank has put intentional efforts into female recruitment and retention within its ranks, with some first promising results, which FinDev Canada will continue monitoring over the lifetime of the investment. 

CLIMATE MITIGATION AND ADAPTATION 

• Reducing GHG emissions: TDB invests into renewable energy infrastructure, including hydro , geothermal, wind, and solar energy producers, as well as sustainable waste management. Through these transactions, which are mostly projects, the Borrower supports development of sustainable industries in its member states, which, among other objectives, helps operationalize the vision of the African Union Agenda 2063 and Paris Climate Change Agreement. Over the lifetime of its investment, FinDev Canada will be monitoring the growth in the TDB financed renewable power generation capacity as a key performance indicator on climate change. 
• Enabling climate adaptation and resilience: TDB intends to become one of the leaders of climate finance on the continent, extending dedicated lines of credit not only for climate mitigation, but also adaptation initiatives. This transaction is expected to support the Borrower on operationalizing this vision for the benefit of private sector entities operating in its member states, for instance, those focusing on resilient urban management.