'SA failed to address AfDB’s objective of supporting small, medium enterprises'

The bank's Independent Development Evaluation has published a report evaluating engagement in 2004 and 2015.

Picture: EWN.

ABIDJAN - An African Development Bank (AfDB) report, evaluating more than a decade of funding to South Africa, has found it failed to address the bank's objective of providing support to small and medium enterprises.

The bank's Independent Development Evaluation has just published the report evaluating engagement, mainly in the finance and energy sectors, between 2004 and 2015.

The evaluation found that low-risk lending through lines of credit via South African based regional financial institutions and commercial Banks made sound commercial sense for the AfDB.

But, from a development banking perspective, since the funding was mainly lent outside of South Africa, the report found it failed to provide support to SMMEs or to address the issue of inclusive growth inside South Africa.

In a statement, evaluator general Rakesh Nangia says the report offers a thorough analysis of the bank's performance, but also of the limitations of it's positioning in the South African context.