Start of main content

Press release
November 9, 2021
TDB Signing Ceremony

FinDev Canada extends USD 20 million loan to the Trade & Development Bank to support sustainable development and expansion of regional trade in Africa

Press Release

FinDev Canada has announced a 8-year USD 20 million loan to the Eastern and Southern African Trade and Development Bank.

Expected Development Impact

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

  • Lutter contre les obstacles auxquels se heurtent les femmes chefs d’entreprise pour accéder au financement : En 2018, la TDB a mis en place un mécanisme de 2,7 millions de dollars US (programme PME) pour fournir des prêts, des financements mezzanine, des garanties et des subventions d’accompagnement aux intermédiaires financiers en Afrique de l’Est, en mettant l’accent sur les entreprises dirigées par des femmes et des jeunes. Le financement et les garanties de la TDB sont particulièrement importants pour le secteur des petites et moyennes entreprises (PME), qui est mal desservi par les banques commerciales et les institutions de microfinancement. Le projet pilote ayant été couronné de succès, on envisage de mettre en place un programme beaucoup plus vaste, doté d’un financement accru, dans les années à venir. Par ailleurs, la TDB a consciemment déployé des efforts pour recruter et retenir les femmes dans ses rangs. Les résultats initiaux sont prometteurs et FinDev Canada continuera de surveiller cet aspect pendant la durée de l’investissement.

CLIMATE ACTION

  • 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.