February 22, 1989                                 Monique Amaudry
Press release No. 89/32                           202/473-9331
DEMAND FOR AFRICA PROJECT DEVELOPMENT FACILITY SERVICES IS STRONG
The results for the Africa Project Development Facility's (APDF)
second year of operations indicate that its services are continuing to
meet a deep-seated need. African entrepreneurs submitted a further
500 project proposals to the Facility for assistance during the period.
"The heavy demand by African entrepreneurs for APDF services
shows that they continue to be willing to shoulder an increasing share of
the economic activities in their countries," declared Mr. Pierre-Claver
Damiba, chairman of the APDF Advisory Board, at a press conference in
Paris on the occasion of the release of APDF's second annual report.
Mr. Damiba is Assistant Administrator and Regional Director for Africa of
the United Nations Development Programme (UNDP).
The Facility was established in 1986 as a UNDP project for a
four-year period and is operated by IFC, which acts as the executing
agency. It has received wide support from both African and donor
countries. Two other sponsoring agencies, the African Development Bank
and the International Finance Corporation, together with 14 countries
have contributed total funding of $17 million.
From offices located in Nairobi and Abidjan, the APDF staff
advises private entrepreneurs in sub-Saharan Africa in the preparation of
viable projects. It also assists promising African entrepreneurs in
organizing, diversifying, and expanding their business. The APDF does
not provide funds, but it helps entrepreneurs obtain financing for


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projects with prospective investment costs equivalent to between
$0.5 million and $5 million. The APDF regional staff works with these
entrepreneurs during the whole cycle of project preparation until funding
is secured and maintains regular contacts with entrepreneurs who have
received APDF assistance. During its second year, the Facility assisted
in arranging financing for 28 projects which will involve investments
equivalent to $45 million and which will create 2,000 jobs in Africa.
As APDF becomes better known in Africa, its services are in
greater demand in an increasing number of countries in the region. In
Fiscal Year 1988, the Facility worked on 105 project proposals located in
24 different countries. National and international banks are beginning
to refer clients with project proposals to APDF for assistance.
Currently, APDF has under consideration some 217 projects located in
25 countries that show good potential and which the Facility's staff
intends to assist in the future.
The demand for assistance continued to be the heaviest from the
agro-industry and fishing sectors during the period, while the number of
requests from the manufacturing sector increased significantly. "It is
encouraging to see that the flow of project ideas continues to be very
strong," says Mr. Damiba. Some of the more interesting projects that
received APDF assistance during 1988 include a flower export company in
Nigeria which will produce roses for the European market. APDF advised
the sponsor in selecting the market, identified a technical partner, the
French firm Meilland, and, with financing obtained from Nigerian banks,
helped develop a new business.
In C6te d'Ivoire, APDF advised a fish processing company in
structuring a viable long-term development plan and in expanding and


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modernizing its facilities to meet the increasing demand for its products
in the European markets. In Tanzania, a manufacturer of biscuits and
pasta obtained APDF assistance to plan a flour mill which will improve
the company's supply of flour and its overall efficiency.
During 1988, APDF opened an office in Zurich where Mrs. Mou
Charles, a Kenyan national, serves as the contact point between the field
offices and potential European technical, marketing, and financial
partners in APDF projects. The office is funded by the Government of
Switzerland as part of its contribution to APDF.
"Based on the experience gained by APDF since its creation, it
is clear that there is a real need for its services," remarked
Mr. Makarand Dehejia, IFC Vice President for Engineering who is
responsible for APDF. The report concludes that since the demand for
services has been greater than expected and financial support
encouraging, the donor countries will be asked to consider an extension
and expansion of the APDF mandate.
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