Are you looking for African Development Bank Grant Application Form 2022 then this article will help you on how to apply for it.
Bank operators who wish to work with it must meet the eligibility criteria and follow the application process. Depending on your status, eligibility criteria and the application process will vary.
Table of Contents
Private sector
Who is eligible for
- No matter whether they are promoted by African investors or non-Africans, an enterprise or project must be found and incorporated within the Bank’s Regional Members Countries.
- A majority ownership (more than 50%) must be held by private sector investors.
- Projects to establish, expand, diversify, and modernize productive enterprises (i.e. capital expenditure.
- The single obligor limit, along with other prudential considerations, determine the size of the investment.
- Maximum Bank participation for Greenfield projects is 33%. This percentage may be higher for projects that involve expansion of existing facilities.
- Demonstrable integrity, good reputation and financial stability
The process
To ensure that the Bank can quickly assess whether a project is eligible for investment, interested companies should submit a preliminary request with the following information.
- Project description (sector, location, production volumes, etc.)
- Sponsors and their managerial and financial background
- Cost estimates, including foreign exchange requirements
- The financing plan, which indicates the amount of Bank funding desired
- Important technical and environmental features
- Indicators of feasibility
- Market prospects and business climate.
- Plan for implementation that addresses the status of licenses, permits, certificates, and other requirements.
Once a project’s eligibility has been determined, the Bank will conduct a complete application review. The Bank will require the following:
- Feasibility Study
- Business plan
- Depending on the nature and scope of the project, environmental and social impact assessments may be required.
Financial instruments
The African Development Bank is adapting its operations to meet the evolving needs of clients in emerging markets. The following financial products are typically required:
- Senior Debt
– Maximum 15 years, with a 5-year grace period
– Risk-priced foreign or local currencies
- Guarantees:
– Partial credit, partial risk (long tenors).
Risk-priced for specific credit or SME loans from commercial banks
- Subordinated Debt
– Subordinated bonds or loans
– Currency local possible, maximum 15 year (10+5), Risk priced
- Equity:
Direct investments in banks, micro-finance institutions, and development financial institutions.
– 25% with or without Board Seat, Planned Exit, Commercial Returns
- Technical Assistance
Grants for Students
For institutional capacity-building programs, up to $1 million
We hope the above information has helped you with African Development Bank Grant Application Form 2022 and if not, kindly drop a comment below.