Consultative Workshop on the Implementation of the AADFI Prudential Standards Guidelines and Rating System (PSGRS)
- September 3 - 5, 2025
- English & French
- Virtual
Background
Enhancing prudential standards, guidelines, and rating systems is essential for ensuring the stability and soundness of African Development Finance Institutions. The AADFI Prudentiel Standards Guidelines and Rating System (PSGRS) was developed to meet these objectives- ensure sound and efficient Development Finance Institutions (DFIs) in Africa. The PSGRS has provided a good framework for strengthening the DFI sector, focusing on three (3) critical areas of governance, financial, and operational management, which over the years have created challenges for African DFIs.
The PSGRS has been instrumental in improving internal conduct and enhancing governance, operations, and financial management of participating African DFIs, while increasing their development impact. By encouraging DFIs to adopt best practices, the PSGRS also promotes financial stability, improves their reputation, and helps to attract donor support. Since its adoption in 2008, the PSGRS has been in use for assessing the conduct of African DFIs, conducting peer reviews, and rating African DFIs.
However, over the years, the level of participation by DFIs at the PSGRS exercise has varied. In 2011, only 30 institutions submitted to the Peer Review exercise but the figure went up to 39 institutions in the 2013 exercise. The overall assessment of participation is that, on average, a little more than 50% of AADFI member national DFIs have participated in the exercise.
Part of the reason for the low level of participation and implementation of PSGRS by certain categories of DFIs has been a lack of knowledge and skills in applying the PSGRS. Some institutions have also raised concerns about the provisions of the PSGRS, which led to the introduction of the Technical Standards Guidelines and Rating System (TSGRS). Thus, there is a need to intensify efforts in widening the participation of all African DFIs in the application of the PSGRS and strengthening its use to measure DFIs.
The upcoming training is therefore aimed at sustaining the efforts to build awareness and skills among officials of DFIs and their institutions in the application of the PSGRS and the TSGRS. The participants will update skills on the methodology for completing and applying the PSGRS.
The objectives of the programme are also to:
- Enhancing the effective implementation of PSGRS in African DFIs.
- Improving the self-assessment process and ensuring the credibility of peer review and rating outcomes.
- Strengthening the technical capacity of participants in the PSGRS and TSGRS mechanisms by enabling them to gain a clear understanding through explanations provided by the Project Consultant.
- Preparing institutions for the 2026 Peer Review exercise using the PSGRS and TSGRS by guiding them through the rating process.
- Discussing the observations and comments from institutions on the PSGRS and TSGRS tools and making recommendations for adjustments where necessary.
- Making recommendations for enhancing PSGRS and TSGRS.
- Prepare institutions for the 2026 Peer Review exercise by guiding them through the process using the PSGRS and TSGRS.
- Discussing lessons learnt on the implementation of the PSGRS.
Contents
- Background to the PSGRS, the TSGRS, and their Current Status
- Overview and Explanations of the provisions of the PSGRS and TSGRS (Governance & Management Standards, Financial Standards, and Operational Standards) and Development Impact Assessment
- Discuss best practices in prudential standards and rating systems: Issues in Rating DFIs and Lessons from the PSGRS.
- Discuss emerging issues and challenges in prudential standards and rating systems.
- Methodology for PSGRS /TSGRS Self-Assessment & Peer Review Exercises
- Development Impact Assessment in the PSGRS/TSGRS Assessment process
- Recommendations for enhancing the PSGRS and the TSGRS Tools.
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