The Association of African Development Finance Institutions (AADFI) successfully concluded its “Consultative Workshop on the Implementation of AADFI Prudential Standards, Guidelines, and Rating System (PSGRS) for African Development Banking & Finance Institutions”, which was held from September 3 to 5, 2025. The program attracted over 200 participants from DFIs in Africa, regulatory authorities, central banks, and industry experts. The workshop deepened understanding of the PSGRS tool and its implementation methodology, thereby enhancing compliance among DFIs, particularly national DFIs. The PSGRS plays a critical role in strengthening institutional resilience.
Mr. Abdelouahab Boushaba, AADFI 1st Vice-Chairperson, in his opening remarks at the workshop, highlighted the rationale for adopting the PSGRS, emphasising that “Enhancing prudential standards, guidelines, and rating systems is essential to the stability and soundness of African DFIs– to help DFIs strengthen governance, improve financial prudence, and embed operational excellence.”
Mr. Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank, in his opening statement, acknowledged the PSGRS as a “transformative tool that provides important guidance for African DFIs and policymakers on key reforms and priorities. And further supports the objective of building a resilient, effective, and independent African financial system.”
The three-day workshop was intensive and participatory, as participants worked through the PSGRS with explanations of the reasons behind the 100 assessment areas, covering governance, financial, operational standards, as well as developmental impact assessment criteria.
The workshop noted that DFIs that have thoughtfully applied the PSGRS have made progressive improvements, calling for DFIs to integrate the PSGRS into their strategic frameworks and utilize it for engaging their stakeholders. Participants also recommended that certain provisions of the PSGRS be reviewed to strengthen and safeguard the instrument, making it adaptable to the changing development finance environment. In addition, the DFIs, particularly the national DFIs, were encouraged to participate in the 16th Peer Review and Rating, to be conducted by the Association using the PSGRS tool, scheduled for 2026.
About the AADFI PSGRS
The Prudential Standards, Guidelines, and Rating System (PSGRS) – developed by AADFI in collaboration with the African Development Bank and supported by the World Bank Group’s FIRST Initiative – is the benchmark framework for assessing governance, financial soundness, and operational practices of African DFIs. Through a structured self-assessment, institutions measure compliance with 100 standards, validate results internally, and submit them – certified by external auditors – to the AADFI Secretariat for peer review and independent verification. This process delivers compliance and rating outcomes that help DFIs identify gaps, enhance credibility, and align with best practices. From 2026, the PSGRS peer-review exercise will adopt a biennial cycle, allowing members more time to implement improvements while monitoring consistently their progress.