Saturday, May 28, 2022

BDC participates in AFDB peer review

Botswana Development Corporation (BDC) participated in the 2021 African Development Finance Institutions (AADFI)’s 11th peer review exercise and recorded a compliance index of 91% (a BB rating) against the Prudential Standards, Guideline and Rating System (PSGRS) administered by the Association of African Development Finance Institutions.

The PSGRS is a reference tool (a system of reference) and an integrated rating system adopted by consensus in 2008 by the African development finance institutions, under the auspices of the African Development Bank (AfDB).

The system of reference comprises 100 standards and prudential guidelines in the areas of governance (39), financial management (30), and operational management (31). The purpose of the assessment is to assist the institution to identify areas of weakness to take corrective measures to address them. The results and rating obtained indicate the level of the institution’s compliance with best standards and practices in the areas assessed. The exercise saw participation from 37 Development Finance Institutions (DFIs) in Africa. T

he overall compliance performance indicates the degree of integration in the policies, strategies, and procedures of the participating DFIs, of the relevant AADFI prudential standards and guidelines, as well as national and international best practices under the code or accounting system, the regulation of the Central Bank, the Basel agreements, and the International Financial Reporting System (‘IFRS’) or e International Sustainability Rating System (‘ISRS’) standards.

“This AADFI rating reflects above all the achievements of the profound transformations observable and in working order within the Corporation. It also offers BDC advice on specific areas of improvement, which the Corporation is committed to, in order to maintain profitability, competitiveness and sustainability” said Managing Director Mr Cross Kgosidiile upon delivery of the results to BDC. AADFI is an umbrella organisation for development finance institutions in Africa, created under the auspices of the African Development Bank in 1975.

The objectives of the Association are to stimulate cooperation for the promotion and financing of sustainable development in Africa and to encourage the process of economic integration in the African region.

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