Under the financing agreement, the African Development Bank (AfDB), the Emerging Africa Infrastructure Fund (EAIF), the Netherlands Development Finance Company (FMO), the German Development Finance Institution (DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH), the South African Industrial Development Corporation (IDC), the Belgian Development Bank (BIO), together with Cordiant managed ICF Debt Pool, are providing debt financing of €133 million. The Swedish Development Fund (Swedfund) and FMO are to join AOG as equity partners. The total size of the investment is estimated at €267 million. The financial close and first draw down of loans and equity is expected to take place in November 2011. Addax Bioenergy S.A. (“Addax Bioenergy”), a subsidiary of the Addax and Oryx Group (AOG), today hosted the ground breaking ceremony for its energy and agriculture project near Makeni, in Sierra Leone (the “Project”). The Project started in 2008 and includes the development of a Greenfield sugarcane plantation, the construction of an ethanol refinery and a biomass fuelled power plant which are due to become operational in 2013. Today’s ground breaking ceremony marks the start of construction of the ethanol refinery and the biomass fuelled power plant. This is a significant milestone for the Project, which aims to become a model for responsible sustainable investment in Africa. The ceremony was attended by key political dignitaries and representatives of different stakeholder groups, including landowners, farmers, civil society organisations, development institutions, and management and employees of the company.

A new report finds that international finance institutions play a key role in catalyzing job creation and growth through the private sector in emerging markets, particularly as governments face increased pressure on public resources.The report, International Finance Institutions and Development through the Private Sector, was launched during the World Bank-IMF Annual Meetings. It was produced by 31 international finance institutions (IFIs). The private sector is recognized as a critical stakeholder and partner in economic development, a provider of income, jobs, goods, and services to enhance people's lives and help them escape poverty. Multilateral development banks and bilateral development finance institutions (together in this report called International Finance Institutions, or IFIs) play a significant role in supporting the private sector in developing countries. They provide critical capital, knowledge and partnerships, help manage risks, and catalyze the participation of others. They support the kind of entrepreneurial initiatives that help developing countries achieve sustainable economic growth.Yet the important development contributions that IFIs make when engaging with the private sector in developing economies are often not clear or adequately communicated to stakeholders and the public. It is the aim of this report to help bridge that gap to increase the information and understanding about both the value of the private sector in development, and the role of international development finance institutions in supporting development through the private sector.The report is a joint effort of over 20 multilateral and bilateral development institutions that have significant programs to promote private sector investment and assistance. This report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs with a focus on the private sector, and was coordinated by the International Finance Corporation (IFC).Download full report here

Supporting SMEs and their growth

BIO is pleased to announce the first closing of the multi-sector private equity fund Maghreb Private Equity Fund III LLC (‘MPEF III’), with a size exceeding Euro 96 million of capital commitments alongside prestigious DFIs and institutional investors. MPEF III aims at financing Small and Medium Enterprises in Maghreb showing a strong growth potential and thus a direct impact on the local economy. MPEF III has been set up in the wake of the MPEF II fund in which BIO has already participated. Moreover, both Morocco and Algeria are partner countries of the Belgian Development Cooperation.

BIO participates in a loan facility of USD 91.25 million with the Emerging Africa Infrastructure Fund, the Netherlands Development Finance Company (FMO) and the African Development Bank to support the KivuWatt project, which aims at removing and processing otherwise hazardous methane gas trapped in the waters of Lake Kivu for use as fuel to generate critically needed electricity. Read full press release

BIO and other Global Institutions signed a loan agreement with an East-African railway company, to rehabilitate and upgrade its infrastructure in Kenya and Uganda. The project aims to transform the railway concession into a reliable and operating service for the benefit of the local population, thus boosting economic and social development in the region. Read full press release