Call for Proposals: Capital Markets Development Trust Fund
Applications are now open for Capital Markets Development Trust Fund which aims to promote the development of African capital markets by providing technical assistance.
Specifically, CMDTF seeks to: improve capital markets’ regulatory and legal environment; upgrade market infrastructure; diversify products; and broaden the investor base.
CMDTF’s operations complement the African Development Bank’s eﬀorts to mobilize resources through domestic financial markets while advancing the Bank’s High 5 operational priorities.
CMDTF’s operations are financed by the Netherlands’ Ministry for Foreign Trade and Development Cooperation and the Ministry of Finance of Luxembourg.
Capital Markets Development Trust Fund (CMDTF) objectives in West Africa
As a multi-donor trust fund hosted and managed by the African Development Bank, the overall objective of the CMDTF is to support the establishment of well-functioning capital markets that can efficiently mobilize and allocate savings to fund credit needs of economic agents and catalyze the continent’s development while reducing intermediation costs. This will be achieved through 2 pillars:
Pillar1 Strengthening capital markets institutions; enabling environment and institutions: Build capacities for stock and securities exchanges, regulators, central securities depositories and debt management offices.
Pillar2 Knowledge Dissemination: Capture and disseminate information and knowledge on development issue that have strategic implications for research and capital markets, development thinking and for policy formulation and capacity building in African countries.
Areas of Interventions
Capital markets’ regulatory & legal environment (30%) – Capital markets development strategies Capital markets framework upgrades;
Capital markets infrastructure (20%) – upgrade of stock exchanges and bond auction systems;
Diversification of capital markets products and services (30%) – Green bonds and asset-backed securities/securitization | small and medium enterprises capital markets instruments | thematic instruments;
Broadening capital markets’ investor base (20%) – African capital markets compliance with offshore jurisdictions | Capital markets data transparency | Capacity-building for institutional investors and banks;
Knowledge dissemination – Production of flagship reports on capital markets development | Knowledge events on capital markets development in West Africa.
Capital markets soft/hard infrastructure development to modernize the functioning of targeted clients /recipients;
Workshops and seminars to build consensus/understanding/skills among stakeholders for appropriate policy, regulatory and institutional reforms;
Policy, regulatory and institutional reforms to assist design and implement specific reforms, including studies, roadmaps, and master plan;
Capacity-building activities to strengthen the capacity of targeted clients in the design and execution of Capital Markets development projects and programs;
Knowledge products and services, including sector studies, establishing trade knowledge platforms, market information systems, disseminating best practices in the field of capital markets development, etc.
Local/regional capital markets authorities;
Local/regional institutional investors and their regulators;
Regional member countries, Ministries of finances, Debt Management Offices;
African government institutions involved in capital markets development; and
Ministries of regional integration.