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Projects

Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
ABC Holdings
Project ID
8486
Fiscal year
2012
Status
Not Active
Guarantee holder
Corporate Development
ADC Financial Services
Investor country
Mauritius
Host country
Botswana
Environmental category
FI
Sector
Banking
Date SPG disclosed
September 06, 2011
Project Board date
September 30, 2011
Gross exposure
 $12.1 million
Project type
Non-SIP

This summary covers an investment by ADC Financial Services and Corporate Development of Mauritius in ABC Holdings (ABCH) in Botswana. The investor has applied for a MIGA guarantee of $12.1 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves ADC’s acquisition of approximately 20 percent of the shares in ABCH. ABCH is the holding company of a number of banks in sub-Saharan Africa, with independent banking licenses, operating under the BancABC brand.  The banks offer a diverse range of financial services including personal, business, and corporate banking—as well as investment/merchant banking, asset management, stock-broking, and treasury services.

Environmental Categorization

The project is a category FI under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

This project will strengthen and diversify ABCH’s funding base and bring about a transfer of technical know-how and best practices to the banking group. This will enable the group to develop a solid platform from which to expand banking services to segments of the market that are generally underserved by foreign banks in Southern and Eastern Africa. Of particular development interest, it is expected that the investment will result more loans to small and medium enterprises.

ABCH is committed to offering above average wages and benefits to staff, as well as ongoing training to ensure a modern workforce.

The project is in line with the World Bank’s Country Partnership Strategy for Botswana, which underlines a need for the country to diversify its economy and identifies international financial services as a key sector in new value chains.

 
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