AADFI holds 2013 annual forum for CEOs in Kenya

A group photo of the 2013 Annual AADFI Forum for CEOs

The Association of African Development Finance Institutions (AADFI) officially opened its 2013 Annual Forum for CEOs, in African Development Banking and Finance Institutions, at the Serena Beach Hotel & Spa, Mombasa, Kenya, today, Thursday, November 14th, 2013. The forum will continue until tomorrow, Friday, November 15th, 2013.

The official opening of the forum was presided over by Prof. Njuguna Ndungu, Governor, Central Bank of Kenya on behalf of Honourable Cabinet Secretary for the National Treasury of Kenya, Mr. Henry K. Rotich. In his address, he noted that the time is ripe to strengthen African DFIs, acknowledging that Africa's economy is moving forward. He emphasized the need for the DFIs to adequately set themselves up to seize the opportunities that are now available to them.

Mr. Gabriel Negatu, the Regional Director of the African Development Bank, was present and gave an address on behalf of Dr. Donald Kaberuka, President of the AfDB. He seconded Mr. Ndungu adding that the growth and changes being noted in Africa are notably positive, saying, "The growth rate of the continent’s low-income countries was well above 4.5% in 2012 and is projected to remain above 5.5% in the coming years." Summing up, he assured member countries and their national DFIs, and sub-regional DFIs, that they would be supported in the pursuit of efficiency and prudence in DFI operations.

The AADFI Chairman and Managing Director of TIB Development Bank Limited, Tanzania, Mr. Peter M. Noni, who is also attending the event, cautioned against the wanting positioning of National DFIs in financing infrastructure and SMEs, specifying that only the well governed, capitalized and supervised will be able to fulfill the mandate.

Ministers responsible for DFI Supervision of some African countries, Central Bank Governors and other key officials will also be addressing the more than 100 participants from Africa and throughout the world who are attending the forum.

The Forum was organized in association with the African Development Bank (AfDB) as co-initiator of the DFIs Prudential Standards, Guidelines and Rating System (PSGRS) Project. It is a bilingual program in English and French on the theme: “Strengthening African DFIs with Appropriate Standards and Guidelines: 3rd Peer Review & Rating of AADFI Member-Institutions”. The Forum is being hosted with the collaboration of the Kenyan member-DFIs including Industrial Development Bank (IDB) Capital Ltd, Agricultural Finance Corporation (AFC), Industrial and Commercial Development Corporation (ICDC), Kenya Industrial Estates Ltd (KIE) and Tourism Finance Corporation (TFC).

The objective of the 2013 Forum is to provide opportunity to CEOs of Development Finance Institutions (DFIs) to review with all stakeholders, namely Director Generals in the DFIs supervisory Ministries, Governors and Heads of relevant Departments in the Central Banks, the implementation and application of the PSGRS Mechanism in DFIs after the 2rd Peer Review of member-institutions with the AADFI PSGRS conducted in November 2011.

The Forum will also examine member-institutions’ PSGRS Summary Ratings Score Sheets and Self-Assessment Results and will enable participants to address any institutional weaknesses identified from the completed assessment forms and find ways and means for implementing proposed reforms in their respective DFIs. Furthermore, it will enable participants to build and strengthen the application of the PSGRS, evolve strategy to sustain Stakeholders’ commitments on the PSGRS Mechanism, evaluate current procedure for conducting the Peer Review with a view to recommending areas of adjustments and improvements and review the effectiveness of implementation of the PSGRS in member-institutions and share success stories.

The forum will further identify aspects of the PSGRS Mechanism that need to be revisited and suggest strategies on how the application of the PSGRS in DFIs could be strengthened. Finally, the Forum will serve as a platform to share experiences of regulatory authorities in supervising DFIs with the PSGRS, network among CEOs and Stakeholders in development financing, discuss the way forward with the Peer Review and discuss other current issues pertaining to the DFI Sector in Africa.

In addition to CEOs, their Deputies and Senior Management Staff in National and Sub-regional DFIs, the target participants are the Director Generals in the DFIs supervisory Ministries, Governors and Heads of relevant Departments in the Central Banks, e.g. Departments responsible for supervising DFIs and/or NBFIs as well as Chairmen of Boards of DFIs, Representatives of Multilateral Banks/ Organizations including the World Bank, the UN, the AU, ECOWAS, CenSad, SADC and bilateral donor agencies.