Private Sector & Trade Finance
Private Sector & Trade Finance at a glance
Contact:
For general inquiries, please contact: pstf@badea.org
Badea offer
Making a positive difference in Africa through private sector investment and trade finance
BADEA offers strategic private sector and trade finance instruments to enhance the private sector landscape in Africa and promote both Arab-African trade and Intra-African trade, while closing the development gap.
As a development finance institution at the service of Arab-African solidarity, BADEA offers an integrated 360° approach to finance development by boosting private sector investment and trade transactions to finance key high impact projects in line with countries’ national priorities, the United Nations’ Sustainable Development Goals and the African Union 2063 Agenda.
As a fundamental strategic pillar of the BADEA 2030 strategy, private sector and trade financing windows support both private sector companies and state-owned corporations operating on a commercial basis to promote inclusive growth, contribute to the general increase of countries’ GDP by supporting strategic industries, and to enhance regional integration.
Our department provides a wide range of funding opportunities, ranging from pure private sector and trade finance to blended finance and non-refundable grants.
To date, 117 transactions totalling more than USD 4 billion have been approved, makeing a positive difference to African countries eligible for BADEA’s interventions, including sovereigns, state-owned enterprises, DFIs, commercial banks and private companies.
Top 7 Key Benefits
- Arab-African expertise and network: A vast pool of experience leveraging Arab funds towards building African
economies. - An intrinsically non-refundable financial instrument for impact:
As a financial instrument at the service of Arab-African solidarity, our grants are, in essence, non-refundable in order to give back to communities, promote inclusive societies and build a more sustainable future. - A genuine capacity ‘development’ approach:
Our broader capacity development vision leads us to empower from within, foster shared ownership, coach through training of trainers (ToT), improve institutional capabilities and focus on a participative and long-term strategy. - A holistic ‘grant-project’ approach:
Our unique 360° integrated approach enables us to sponsor feasibility studies showcasing the project’s vitality for local communities, demonstrate the vitality of a project to those communities and, at a later stage, mobilize financial resources to bring these projects to fruition. Conversely, grants can also be utilized to fund new equipment for a newly built or renovated public sector construction. - An innovative, scalable pilot project approach:
We have an appetite for scalable pilot projects. Our purpose is to start small, experiment with new solutions at that scale and draw lessons to implement on a large scale. Such projects have the potential to be replicated in other areas, countries or industries, for further impact. - A top-notch entrepreneurship expertise:
Our entrepreneurship expertise enables us to support MSMEs tackling sustainability and women and youth economic empowerment, among others, through technical assistance, training, equipment and microfinance. - A solid Arab-African expertise and network:
Our proven 50-year track record for Arab-African shared prosperity leads us to foster the transfer of knowledge between the two regions and leverage additional Arab funds towards African economies for greater impact.
Key Sectors
- Financial Services
- Healthcare
- Education
- Agribusiness and Agro-Industry
- Finance
- Infrastructure
- Tourism and Hospitality
- Natural Resources
- Real Estate and Property Development
- Manufacturing and Heavy Industries
Promoting Inclusive Growth through Private Sector Investments
- Private Sector Instruments
- Lines of Credit
- Equity Investments
- Direct Financing: Junior Loans
- Direct Financing: Senior Loans
- Syndications and Co-Financing
Supporting Arab-African and Intra-African Trade for Greater Development Impact
- Trade Finance Instruments
- Lines of Credit
- Direct Financing
- Unfunded Facilities
- Syndications and Co-Financing
- Discounting, Forfaiting, Bridge Financing
Lending Process
- STEP A: Request and Info Pack
- STEP B: Internal Review and Approval
- STEP C: Signature
- STEP D: Effectiveness and Financial close
- STEP E: Disbursement
