TDB, AFD Sign 150 mln USD Credit line to Finance Green Infrastructure in Africa

Addis Ababa August 16/2020(ENA) Eastern and Southern African Trade and Development Bank (TDB) and French Development Agency (AFD) have signed a 150 million USD credit line agreement aimed at financing climate infrastructure projects in Africa.

According to a statement sent to ENA, Admassu Tadesse, Eastern and Southern African Trade and Development Bank (TDB) President and Chief Executive, and Ghislain De Valon, AFD Kenya Director, signed the agreement.

The non-sovereign loan’s objective is to strengthen TDB in its role as a leading regional bank for green finance in the region it serves in Eastern and Southern Africa, it was stated.

The facility will increase the supply of climate finance from TDB, directly contributing to the achievement of the objectives outlined in the nationally determined contributions (NDCs) of TDB member countries in climate change mitigation and adaptation.

Accordingly, 80 percent of the facility will be dedicated to the financing of eligible climate projects, according to streamlined International Development Finance Club (IDFC) and Multilateral Development Banks (MDB).

The remaining 20 percent aims to respond with more flexibility to TDB’s long-term resource requirements for project funding activities.

This will allow for the funding of projects which are compatible with the 2015 Paris Agreement and contribute to SDGs, in other sectors such as telecommunications, health or education, the statement added.

“As members of IDFC, both AFD and TDB are working to align financial flows to the climate agenda as well as to SDGs” says Admassu Tadesse, TDB President and Chief Executive.

“With now over 70 percent of our energy portfolio is renewable, our expanding partnership with AFD will enable the Bank to accelerate further its climate change mitigation and adaptation efforts, and give a boost to the global and regional impetus driving low-carbon development in our member states.”

AFD Kenya Country Director, Ghislain de Valon, is echoing this assertion: “TDB and AFD are walking the same path, voluntarily accelerating on Climate Finance for infrastructure in Africa, as the opportunity truly exists to switch paradigm and reinforce the use of renewable energy and climate change investments in countries that are already following this universal trend”.