CONCLUSIONS
Common Point # 1
FfD is a domain that deserves a specific attention
today
 No institutional approach; functional approach (de
B)
 Yet, institutions matters (see below)
 A holistic view of FfD, including position within
financial sector must be taken
 No one-size-fits-all approach
 Must take into account that DFIs in Zone Franc are
submitted to commercial-bank regulations
(provisioning, usury rate, etc. (Comores, BNDA)
Common Point # 2
FfD’s raison-d’être is to bring finance to specific
clients/projects
 Market failures and vulnerable economic actors

Local level
• Local groups (BNDA)
• Municipalities (DBSA)



SMEs (ADB)
Renewable Energies
State failures

Infrastructures (DBSA, BOAD, CDG)
Common Point # 3
FfD is composed of a combination of variety of (i) specific
financial instruments, (ii) specific non-financial
instruments.
 Not just long-term finance
 Specific Financial Instruments








Grants,
Loans
Leasing (DFCU, BOAD)
Guarantees (BOAD)
Equity participation (DBSA, Tunisia, BOAD, CDG)
Underwriting (DBSA, BOAD, CDG)
Arranging (DBSA, BOAD, CDG)
Specific non-financial instruments




Advorisy Services : “Development entails more than financing”
(DBSA),
Technical Assistance (DBSA, BOAD, DFCU)
Capacity Building (DBSA)
External Technical Services (BNDA)
Common Point # 4
Resources are needed to build FfD financial instruments.
 Liquidity in banking systems is very important in Africa; not
used for FfD (de B)
 Two opposite situations

DFIs are banks
• Relatively easy access to resources through deposits from clients and
governments (BNDA, BGD)
• Use of resources difficult because banking regulations (BNDA)

DFIs are not banks
• Resources are more difficult to mobilize (BOAD, DFCU, DBSA)
• Use of mobilized resources left to DFIs because of lack of external
regulations

Concessional resources are needed


Yes (BOAD, CDG)
Not necessarily (DFCU)
Common Point # 5
The organization supplying FfD (DFIs) must be a complex organization.
 It must be a Knowledge Organization

DBSA : “We are an advanced knowledge-based organization”

BOAD : études sur le coton, PME, HIV, etc.
 It must be an organization capable of playing multiple functions

Financiers

Partner (DBSA, BOAD, CDG)

Adviser (DBSA, DFCU)
 It must be an organization knowing how to be a catalyst/facilitator (DBSA, BOAD,
CDG)
 When DFIs are banks, they must

Abide banking regulations (BNDA, BGD, Comores)
• What can we do when regulators do not understand the constraints of FfD
(BDEAC, BNDA)
• Should not we revisit banking regulations to give more margin of action to
FfD activities ?

How can the two domains (commercial and developmental) be coordonated ?
• By combining them in a single organization (BNDA, BGD)
• By separating the two domains (DFCU)
• By creating separate entities for each developmental activity (BGD).
Common Point # 6
DFIs can be profitable.
 BOAD : “Nous n’avons pas vocation à
faire des profits, mais dans la
diversification et dans la conduite des
actions nous générons des profits”.
 DFCU, BNDA
 DBSA : “making profit shields DFIs
government interference”.
Common Point # 7 (1/2)
As organizations, DFIs must have a specific
governance.
Problem
 Capital of the DFIs will be predominately public





Mission de service public (BNDA, BGD, DBSA, CDG, BOAD)
Political pressure to promote regional integration (DBSA, BOAD)
Market failures (private sector not interested)
State failures (national budget cannot finance)
Risks



Interference from government (BOAD, Comores, ADB, Egypt)
Civil servants managing FfD (Tunisia)
Crowding out private sector (IBRD)
Common Point # 7 (2/2)
Proposed solutions
 DFIs must diversify its shareholders to bring counterweight to
government (BOAD, BGD)
 DFIs must pay attention to the composition of their Board

Board Members should be trained and made aware that they
have a responsibility (DFCU)

External personalities/independent persons will bring weight to
Board (BGD)
 DFIs that are not banks should impose on themselves stringent
rules

Criteria of internal rules of some DFIs are more severe than
banking regulations (SADCC)
 Pressure from outside actors is useful

“Les marchés nous jugent” (BOAD)

Ratings are crucial (SADCC, BOAD)
 Being profitable is best protection from government : see above
(DBSA).
Draft action proposals
1.
Make an inventory of DFI success stories &
lessons learnt
2.
Organise sub-regional consultations
3.
Organise exchange of DFI best practices
and standards
4.
Liaise with other fora on corporate
governance (IBRD, OECD)
5.
Organise a working group on regulations to
work on DFI specificities