Technical Assistance Packages to Financial Institutions in Africa: Risk management

Thematic Area:	Risk, Governance & Regulation
Duration:	2021
Client:	African Developpement Bank (AfDB)
Region:	Africa
Country Coverage:	Multiple

Project Overview

The primary objective of the Africa SME Program, initiated by the African Development Bank (AfDB) in 2013 and implemented by Frankfurt School, was to strengthen the institutional capacity of African financial institutions and broaden access to finance for SMEs across Africa. Using a dedicated $150M fund for loans and guarantees and a $4M grant for technical assistance, the program targeted enhancements in risk management, compliance, and credit processes within FIs. Tailored interventions were designed for both FIs and SMEs, encapsulating credit scoring, IT improvements, and digital strategy development, all geared towards promoting sustainable growth and deepening financial inclusivity on the continent.

Project Impact

Under the Africa SME Program, Frankfurt School expertly designed and executed technical assistance tailored to African financial institutions (FIs) and SMEs. Through rigorous FI evaluations, emphasis on credit risk management, and dedicated SME capacity building sessions, the initiative dramatically improved operational standards. As a result, the project not only fortified institutional capacities but also substantially elevated SME financial competency, market strategies, and formalization. This comprehensive intervention fostered a conducive ecosystem for SME growth in Africa, furthering economic resilience and sustainable expansion across the continent.