African DFIs reiterates commitment to mainstream the PSGRS in their “DNA”

Abidjan, April 29, 2021 — The focal persons for the implementation of the AADFI Prudential Standards, Guidelines, and Rating System (PSGRS) for African DFIs reiterated their commitment to ensuring the mainstreaming of the PSGRS in their institution’s strategy. This was one of the major outcomes of the virtual technical session on the PSGRS implementation and self-assessment process held on April 27 and 28, 2021.

The objective was to equip the officials responsible for the application of the tool with the required knowledge and skills to enhance the reliability of the PSGRS self-assessment results and strengthen the credibility of the AADFI peer review and rating exercise.

Delegates exchanged professional experiences, harmonized their understanding and interpretation of the PSGRS, discussed the changes in the self-assessment process, and proposed amendments for improvements.

The two-day session was declared open on April 27, 2021, by Mr. Stefan Nalletamby, Director of the Financial Sector Development Department (PIFD) of the African Development Bank (AfDB), while  Mr. Abdelouahab Boushaba, AADFI Board member and Representative for North Africa, presented the opening address of Mr. Thabo Thamane, AADFI Chairman.

The address of the AADFI Chairman traced the issues of poor governance, weak risk management, and adverse interferences from states and owners of DFIs as some of the challenges that propelled AADFI, with support from AfDB, in evolving the PSGRS. Therefore, the effort of the Association was directed to ensure that African DFIs, particularly the national and sub-national DFIs, are strengthened to operate in line with best practices in order to contribute meaningfully in promoting sustainable development.

Mr. Stefan Nalletamby, in his opening remarks, reiterated the appreciation of the AfDB for the efforts of the AADFI to strengthen the African DFIs. Pointing out that the initiative to enhance the credibility of the PSGRS resulted from a series of consultations of the AADFI with AfDB, he encouraged the focal persons to take ownership of the reform brought to the PSGRS and reinforce the capacity of their institutions.

The major conclusions from the session were as follows:

1. The idea of appointing a focal person for the effective implementation of the PSGRS in member institutions was commended, as it would facilitate a better appreciation and application of the PSGRS in their institutions.
2. The delegates committed to mainstream the PSGRS in their organization’s “DNA” in order to enhance their operational efficiency and development impact.
3. Regular sessions on the PSGRS were agreed for the focal persons in African DFIs to benchmark and share experiences.

The technical session was facilitated by Mr. Paul Yuma, the AADFI PSGRS self-assessment Consultant.  It was attended by 75 participants from 56 DFIs across 25 African countries.

About the PSGRS

The Prudential Standards, Guidelines, and Rating System (PSGRS) was developed 10 years ago by the AADFI, with the support of the AfDB, as a tool for strengthening the African Development Finance institutions (DFIs). The tool has been useful to DFIs in assessing their areas of weaknesses and strengths with the view to reinforce the strengths and address the weaknesses. The PSGRS has also provided a regulatory guide for various DFI supervisory authorities in many African countries and served as a useful instrument in transforming African DFIs from “non-performing” to “performing” DFIs. The PSGRS has gained acceptance and recognition as an important instrument for strengthening the African DFIs.

For more information about the AADFI and its upcoming activities, visit www.adfi-ci.org.

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