OPEC and TDB promote infrastructure development in Africa - Trade Finance Global

OPEC and TDB promote infrastructure development in Africa

By Joana Fabiao

Joana Fabiao is the Marketing Manager at Trade Finance Global (TFG). She holds a BA in International Business from the University of Westminster, with a core focus on Global Economic Issues, International Financial Management and Organisational Behaviour. She also holds a certificate in Bloomberg Market Concepts. Prior to working at TFG she worked as Junior Consultant in the Marketing and Events Department at Westminster Business Consultants, focusing on their social media campaigns, content and marketing strategy.

Last updated on 29 Jun 2024

02 Sep 2022 2 min reading time

Key Themes:

The OPEC Fund for International Development (OPEC) and the Trade and Development Bank (TDB) are strengthening their cooperation via the OPEC’s latest commitment of debt and equity totalling $40 million.

These recent investments in TDB aim to further bolster the partnership and unlock opportunities in support of sustainable development in Africa.

TDB President Emeritus, and Managing Director Admassu Tadesse, said, “With this investment, we look forward to growing our infrastructure and trade financing in Africa.”

This $10 million class B equity investment, the second since the OPEC and TDB began their partnership in 2009, will support the bank’s capitalisation and increase its financing capacity in TDB’s 22 member countries.

Class B shares were introduced into TDB’s capital structure in 2013 to attract institutional investors.

This asset class offers capital growth, dividends, and an impact that has drawn strong interest from several investors.

Since its inception, a range of institutional investors from Africa, Europe, and Asia have invested $228 million in the class B share segment. During 2021, the Bank received additional equity injections of $6 million in class B shares from Caisse Nationale de Sécurité Sociale of Djibouti (CNSS).

On September 1, the OPEC and TDB also signed a $30 million loan to support infrastructure projects in Eastern and Southern Africa to bolster recovery from the COVID-19 pandemic and its economic impact.

At the signing in Vienna, OPEC Director-General Dr Abdulhamid Alkhalifa, said, “[This partnership] emphasises our strong joint commitment to boost sustainable economic development in Africa.”

TDB Group Executive Corporate Affairs and Investor Relations Mary Kamari, added, “With this investment, the OPEC Fund has increased its equity stake by 50%.

“The Bank’s class B equity base has grown very well, with 18 institutional investors in the shareholder community, including pension funds, insurance companies, central banks, and development finance institutions.”

The cooperation focuses on the provision of financing to the agriculture, trade, industry, infrastructure, energy, and tourism sectors as well as the promotion of economic and social development.