Report on Feasibility of a Regional Development Bank in IGAD
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The Horn Economic and Social Policy Institute (HESPI) has led a series of research studies and stakeholder workshops to consider the establishment of a development bank for the Intergovernment Authority on Development (IGAD) region. The present study is concerned with reviewing and assessing the viability of such a regional development bank and preparing the framework for submission of an outline structure to the member states of the IGAD region.
The main objectives of the study are to:
- Ascertain the feasibility of establishing a regional development bank (RDB) for the IGAD region for promotion of public and private investments including projects important for regional integration and cross border linkages.
- Prepare a report with analysis and description of the conditions under which such institution would be feasible and sustainable; and provide a framework and the steps, including the establishment of the bank and the future development of programmes and activities.
- Assess the likely challenges of establishing such a bank in the IGAD environment, and present specific recommendations covering the bank’s size, governance, scope of activities, possible methods of capitalisation, and mitigation of risks.
- Provide a needs assessment of the envisaged sources and costs of capital that would be vital for a RDB in a low income countries environment, and that would be important for its feasibility and sustainability.
- Provide a detailed description of the institutional set-up and arrangements, including the participation of non-regional members and private investors that could be considered to enhance the viability and sustainability of the RDB.
- Describe the competitive advantages, such as marketing niches, and lending and financing competencies the bank should have for its product