Access to financial services in developing countries is often scarce. This hampers local economic growth and social development. Consequently, IFU has a strategic focus on enhancing financial services by investing in financial institutions including banks.
On 9 December, IFU signed an investment agreement of DKK 132 million with Trade and Development Bank (TDB), which serves 22 Eastern and Southern African Member States.
“We are delighted to welcome IFU to our community of institutional shareholders. This investment in TDB’s risk capital is a new frontier for European institutional investors, and we salute IFU for its pioneering role within Europe and look forward to working closely together in the sustainable economic development of the Region.”
Admassu Tadesse, TDB President and Chief Executive.
Creating integration and development
The Trade and Development Bank’s mandate is to finance and foster trade, regional economic integration and sustainable development through trade finance, project and infrastructure finance, asset management and advisory services.
– TDB is a very important institution with a significant impact on the integration and sustainable development of Eastern and Southern Africa. We are very pleased to engage in this new partnership and we believe our investment will help TDB’s important efforts in mobilizing more private financing for Africa, said Torben Huss, CEO of IFU.
The two parties have also signed a Cooperation Agreement that includes cooperation on various new initiatives such as the TDB’s SME programme, special purpose funds and technical assistance. Moreover, TDB and IFU will also explore co-financing opportunities via various financing structures and information sharing, in key sectors, including agriculture, healthcare, education, energy, hospitality and infrastructure.
– We are looking forward to this collaboration our cooperation and the development of targeted initiatives like financing for SMEs, as well as investments in agribusiness and infrastructure, which are critical to achieving the sustainable development goals, says Torben Huss.