EASTERN AND SOUTHERN AFRICAN TRADE (FMO-55073)

Regions
  • Africa
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
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 15, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Eastern and Southern African Trade and Development Bank
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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

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
Financial Intermediary
Financial Intermediary: A commercial 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

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

*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