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President of the Eastern and Southern African Trade and Development Bank, Admassu Tadesse has said the Bank is looking to participate in long term funding for infrastructural development projects in Uganda and Africa.

Speaking at the 34th annual General meeting for the regional Governors in Kampala, the president noted that although TDA has financed major projects in Uganda, these have been mainly on short term trade financing.

TDB is a trade and development financial institution in Africa that was formed in 1985. The bank is owned by major African states, Security funds and other private companies.

The president noted that despite economic challenges in the states where the bank operates, it has been able to surpass its targets.

Currently the bank is growing at a 24% annually, 3 times more than the GDP growth of the region.

According to the outgoing chairman of the board Maurice Lousta-lalanne, the bank has achieved all its five year targets with its assets growing from $1.8b to $ 2.5b.

The bank has also reduced its non-performing loans from 3.89% to 2.39%.

Finance minister, Matia Kasaija who is also the incoming Board of governors TDA said the bank has been a very supporting partner for Uganda with over 12 transactions in Banking, Manufacturing, trading, Agribusiness, health sector and real estate.

“TDA helped us with $ 200m in finance part of our budget. They also helped us in setting up the Kampala Cement which has improved our cement production. There are many projects but those are the major ones”

More details: https://chimpreports.com/trade-and-development-bank-to-focus-on-africas-long-term-growth-projects/

RBS stake sale realises £2bn loss on bailout value

The latest sell-off RBS shares by the Government resulted in a loss of more than £2bn on their value at the time of the bank’s 2008 bailout, it has been revealed.

UK Government Investments (UKGI), which manages the taxpayers’ holding in the bank, confirmed on Tuesday morning it had successfully completed the disposal of a 7.7% stake – first announced on Monday evening.

The placing price was 271p per share, raising just over £2.5bn for the public purse – money the Chancellor Philip Hammond said would be used to draw down the national debt.

The sale – the first since 2015 – brings the Government’s total stake down to 62.4% – though it has attracted criticism on value grounds.

The placing price achieved, at 271p, is well below the 502p the-then Labour government paid for them at the height of the financial crisis almost ten years ago to prevent the lender toppling.

The previous sale three years ago netted public coffers more in value terms because the placing price was 330p.

The Economic Secretary to the Treasury, John Glen, told Sky News the timing was based on the advice it received from the “experts” at UKGI.

Source: https://news.sky.com/story/rbs-stake-sale-realises-2bn-loss-on-bailout-value-11395217

The African Development Bank, under the leadership of its President, Akinwumi Adesina, has increased disbursements to support the structural transformation of countries in Africa, according to its Annual Report, released during the Annual Meetings in Busan, Korea.

Bank disbursements reached US $7.81 billion in 2017, a 15% increase over 2016 and the highest on record for the Bank. This increase was driven, to a large extent, by the 42% increase in project loan and grant disbursements, which reflect in part, improved portfolio management. The Bank approved 249 operations amounting to US $8.93 billion. This was reflected in its core financing, disbursements, operational strategies and portfolio management.

Adesina indicated that this “reflected a 56% increase in disbursements for non-sovereign operations. A clear sign of the Bank Group’s increasing engagement with Africa’s private sector, non-sovereign operations accounted for 38% of African Development Bank approvals, the highest on record.”

While the Bank’s net operating income declined between 2014 and 2015, it has turned around rapidly. “The Bank Group also continued to grow its income. Net operating income increased in 2017 to US $817.69 million, up from US $631.08 million in 2016, a 29.6% increase and the highest since 2009,” Adesina said, adding that, “the Bank also consolidated its position as Africa’s leading knowledge institution by taking full leadership responsibility for the publication of a key flagship – the African Economic Outlook.”

The Bank is stepping up the pace by focusing on five priorities that are crucial for accelerating Africa’s economic transformation: the “High 5s” include Light up and power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the quality of life for the people of Africa.

These High 5s guide the Bank’s operations to deliver critical development impacts in Africa. For example, once completed, power generation projects approved in 2017 will install 1,400 MW of new renewable energy capacity. Light up and power Africa provided 4.4 million people with electricity. Feed Africa provided 8.5 million people with improved agricultural technologies.

Source: https://am.afdb.org/en/press-releases/african-development-bank-achieves-historic-disbursement-us-781-billion-exceeding-2017

Africa agrees deal for Continental Free Trade Area

On March 21, 2018, 44 African heads of state and government officials met in Kigali, Rwanda, to sign the framework to establish this initiative of the African Union.

The AfCFTA will come into effect 30 days after ratification by the parliaments of at least 22 countries. Each country has 120 days after signing the framework to ratify.

This will be one of the world’s largest free-trade areas in terms of the number of countries, covering more than 1.2 billion people and over $4 trillion in combined consumer and business spending if all 55 countries join. Here are four things you need to know about the AfCFTA.

1) What is the AfCFTA and how did it come about?

It creates a single continental market for goods and services as well as a customs union with free movement of capital and business travelers. The African Union agreed in January 2012 to develop the AfCFTA. It took eight rounds of negotiations, beginning in 2015 and lasting until December 2017, to reach agreement.