According to an African Development Bank (AfDB) September 2022 press release, the AfDB and Portugal have signed a €400 million guarantee agreement to finance private sector initiatives and public-private partnership (PPPs) projects in Portuguese-speaking African member countries. The countries include: Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique and São Tomé and Príncipe.
Portugal to provide guarantees of up to €400 million
“Under the agreement, Portugal will provide guarantees of up to €400 million exclusively to African Development Bank-financed projects approved under the arrangement. The Compact targets the private sector in Portuguese-speaking African member countries. The program would allow for individual Bank projects to be covered for up to the full maturity of the loan (up to 15 years) and up to a maximum of 85% of the total bank loan principal amount,” said the African Development Bank (AfDB).
Strengthening the private sector and promoting sustainable development
The aim of this initiative is not only to strengthen the role of the private sector in these countries, but also to promote sustainable and inclusive growth:
“Our conviction is that this risk mitigation instrument will contribute to boost the potential for private sector investment in the African Portuguese speaking countries and support inclusive and sustainable private sector growth,” said Mr. António Mendonça Mendes, Secretary of State for Tax Affairs for Portugal.
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