EASTERN AND SOUTHERN AFRICAN TRADE (FMO-55073)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 15, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Eastern and Southern African Trade and Development Bank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Trade Finance
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jan 16, 2019


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Eastern and Southern African Trade and Development Bank (TDB) and previously PTA Bank, is a specialized African regional financial institution established in 1985 that provides short, medium and long-term financing, across a wide set of sectors, both private and public-sector clients, on sustainable and commercial principles.

According to bank documents, the funding involves provision of a USD 15 mln Trade Facility Limit to TDB under the FMO Trade Enhancement Program to further support trade finance activities.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
FM Sociedade de Controlo SGPS Parent Company Construction owns ENGENHARIA E Client Construction
FM Sociedade de Controlo SGPS Parent Company Construction owns MOTA-ENGIL Client Construction
Hakan Mining & Elecity Parent Company Energy owns Akanyaru Valley Peat-Fired Client Energy
Lloyds Banking Group PLC Parent Company Communications owns EDM Group Ltd Client Communications
Power Construction Corp of Parent Company Energy owns Kariba South Hydropower Plant Client Energy
Trade and Development Bank Investor Finance invests in Akanyaru Valley Peat-Fired Client Energy
Trade and Development Bank Investor Finance invests in EDM Group Ltd Client Communications
Trade and Development Bank Investor Finance invests in ENGENHARIA E Client Construction
Trade and Development Bank Investor Finance invests in Finasifroko Constr Spv Ltd Parent Company Construction
Trade and Development Bank Investor Finance invests in FM Sociedade de Controlo SGPS Parent Company Construction
Trade and Development Bank Investor Finance invests in Hakan Mining & Elecity Parent Company Energy
Trade and Development Bank Investor Finance invests in Kariba South Hydropower Plant Client Energy
Trade and Development Bank Investor Finance invests in Lloyds Banking Group PLC Parent Company Communications
Trade and Development Bank Investor Finance invests in MOTA-ENGIL Client Construction
Trade and Development Bank Investor Finance invests in Power Construction Corp of Parent Company Energy
Trade and Development Bank Investor Finance invests in Samburu Ltd Parent Company Transport
Trade and Development Bank Investor Finance invests in Zimbabwe Power Company Parent Company Energy
Trade and Development Bank Investor Finance invests in Zimbabwe Power Company (ZPC) Power Plants Expansion and Rehabilitation Client Energy
Zimbabwe Power Company Parent Company Energy owns Zimbabwe Power Company (ZPC) Power Plants Expansion and Rehabilitation Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works