Signing of an agreement between AFD and BANK OF AFRICA – Tanzania
Joint Press Release
Signing of an agreement between AFD and BANK OF AFRICA – Tanzania
Tanzania, 22nd November 2016 – Agence Française de Développement (AFD) and BANK OF AFRICA– Tanzania (BOA-T) have today signed a financing agreement for a credit line amounting to 25.67 billion TZS (12 Million USD for renewable energy and energy efficiency).
USD 12 million already available for lending to renewable energy and energy efficiency projects in Tanzania for financing through BANK OF AFRICA-Tanzania
AFD and BANK OF AFRICA -Tanzania signed a Credit Facility Agreement of USD 12 million. The Agreement was signed by Mr. Bruno Deprince, AFD East Africa Community Regional Director, and Mr. Ammishaddai Owusu-Amoah, the Managing Director and CEO of BANK OF AFRICA- Tanzania in the presence of Chief Executive Officer, Confederation of Tanzanian Industries (CTI). Both institutions confirmed the collaboration through this SUNREF initiative (Sustainable Use of Natural Resources and Energy Finance). This innovative program will enable BANK OF AFRICA-Tanzania to provide both short-term and long-term funding at attractive interest rates lower than the usual commercial interest rates adapted to both public and private sector clients to implement renewable energy and energy efficiency projects which face difficulties in accessing funding.
An integrated approach for green growth
The credit line is also accompanied with a technical assistance programme funded through the European Union to support BANK OF AFRICA-Tanzania and to enable the bank to strengthen its capacities in green finance. The technical assistance will also provide expertise for potential investors and Project developers to further build on their expertise in developing viable renewable energy and energy efficiency investments. This support covers the entire investment process and includes projects preparation, risk assessment and bank capacity building.
SUNREF, AFD’s green finance label: an innovative partnership with BANK OF AFRICA-Tanzania for green finance to
support private actors
SUNREF East Africa programme promotes development of a low carbon economy in the region (Tanzania, Uganda, Kenya) by financing the development of renewable energy and energy efficiency solutions. To support private investment in green energy and energy efficiency, AFD supports local banks in identifying green investment opportunities and in allocating green loans with favorable conditions for tailor-made debt.
The program is designed to help businesses seize the opportunities created by the ecological transition; by enhancing the banking sector to finance renewable energy and energy efficiency. Renewable energy projects are those producing any form of energy (heat, steam, power) without any fossil fuels or any radioactive source, including hydroelectricity, wind power, biomass & biogas and solar energy. Energy efficiency projects are capital expenditure projects that allow consumers to use less energy for achieving the same or a higher level of energy services (output).
The project will contribute to increasing energy efficiency and the share of renewable energy in the Tanzania economy, consequently contributing to reduction of CO2 emissions and the pressure placed on fossil fuels. The facility will thus help in facilitating Tanzanian entities and businesses to access affordable green technologies and to invest in rationalisation of energy use, thus helping them to improve their efficiency and overall competitiveness as well develop clean energy.
AFD strategy is anchored on support for environmentally sustainable development through mitigation of climate change by moving to low-carbon growth paths. This includes, among other things, improving energy efficiency, expanding the use of clean energy sources, and reducing greenhouse gas emissions.
The AFD Groupe is indeed pleased to be expanding its long-term cooperation with The BANK OF AFRICA and engagement with the private sector as an engine for economic growth and development. Through this new program, AFD and BANK OF AFRICA-Tanzania confirm their commitment to support Tanzania’s efforts towards a green transition.
About SUNREF East Africa
SUNREF (Sustainable Use of Natural Resources and Energy Finance) is AFD’s green finance label. In a context of energy and environmental transition, SUNREF East Africa helps private actors in East Africa seize the opportunities of this transition via an innovative approach and encourages local banks to finance it.
Launched in 2011, SUNREF East Africa is developing fast with a hundred projects under study. To date, 11 SUNREF East Africa projects have been successfully implemented, in partnership with 4 local banks in some 3 countries of operation, for a signed amount of more than EUR 35 million.
About European Union
The European Union is made up of 28 Member States which have decided to gradually pool their know-how, their resources and their destiny. Together, over a period of over 50 years of enlargement, they have built an area of stability, democracy and sustainable development, while maintaining their cultural diversity, tolerance and individual freedoms.
The European Union is determined to share its achievements and values with countries and peoples beyond its borders.
About BANK OF AFRICA- Tanzania
BANK OF AFRICA- TANZANIA is a commercial bank serving enterprise and retail customers. It began operations in Tanzania in June 2007 after acquiring Eurafrican Bank which had been operating in Tanzania since September 1995. BANK OF AFRICA-TANZANIA is part of the BANK OF AFRICA GROUP which is a Pan-African banking group present in 18 countries, 8 in West Africa (Benin, Burkina Faso, Cote d’Ivoire, Ghana, Mali, Niger, Senegal and Togo), 9 in East Africa and Indian Ocean (Burundi, Djibouti, Ethiopia, Kenya, Rwanda, Uganda, Tanzania and Madagascar), Central Africa (Democratic Republic of the Congo) and in France. Created in 1982 in Mali, Bank of Africa Group has more than 5,400 employees at the service of more than 2 million customers, through a network of 473 agencies. In 2005 the Group started looking for a banking partner capable of both strengthening its financial means of intervention and also of complementing its technical means of intervention. The projected strategic alliance came to fruition on 25 February 2008, with a 35% capital increase of BOA GROUP, which is the new name of the holding company of the BANK OF AFRICA Group. This stake is fully held by BANQUE MAROCAINE DU COMMERCE EXTERIEUR (BMCE) which has thus joined the shareholders of the BANK OF AFRICA Group. This significant capital increase, coupled with the entry of a strategic shareholder in the banking sector, has provided greater resources both for the expansion of existing entities of the BANK OF AFRICA Group, and for facilitating development into new geographic zones and sectors. BMCE Bank has thus acquired a majority stake in the existing BOAs, and in BOAs yet to be created. As of December 31, 2014, BANK OF AFRICA Group had more than 6 billion euros in total assets, and posted 388 million euros in net banking income and collaboration between the two Groups going ahead according to schedule.
BANK OF AFRICA- TANZANIA’S customer base ranges from multinational companies, government institutions, non-governmental organizations, small businesses and individuals. In Tanzania the BANK OF AFRICA GROUP boasts of a network of 25 branches; 14 in Dar es Salaam and 11 upcountry (Arusha, Babati, Dodoma, Kahama, Moshi, Mtwara, Mwanza, Morogoro, Mbeya, Tunduma and Zanzibar) including one Business Center in Oyster bay.
BANK OF AFRICA-TANZANIA is well known for providing cutting edge banking solutions to its clientele ensuring that it exceeds the markets expectations for all its market segments. Offering wide range of products that are tailor made for the end use.