New Delhi: The Asian Development Bank’s (ADB) private sector operations reached $3 billion in 2019, lifting the overall portfolio by 11% to $13.6 billion, according to its latest Private Sector Operations in 2019 – Report on Development Effectiveness.
There were a record 38 new private sector projects committed in 2019, up from 32 the previous year. Almost $7 billion of commercial cofinancing complemented ADB’s direct financing, while $125 million was mobilized through transaction advisory services.
“Reducing poverty and spurring prosperity across the region requires significant contributions from the private sector, and these results show that ADB is helping to make that happen,” said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Diwakar Gupta. “In these challenging times, our support for the private sector is vitally important. ADB will continue to support crucial infrastructure and financial sector development. We will step up efforts to support the private sector in emerging areas like health, agribusiness, and education, and in new and frontier markets including fragile and conflicted-affected situations.”
Private sector transactions by ADB in 2019 are expected to create nearly 24,273 new jobs across the region. They will provide access to financial services to almost 2.7 million people as well as micro, small, and medium-sized enterprises (MSMEs). Over 96% of these MSMEs are expected to be women or enterprises owned by women. Approximately 12,400 farmers will benefit from improved livelihoods through agribusiness projects, while enough energy will be generated for 2.1 million average-sized households.
Active private sector operations in 2019 have already contributed to the region’s economies through the procurement of $13.8 billion worth of local goods and services, $9.5 billion in government revenues, jobs for an additional 319,743 people, and 422,830 training beneficiaries, mostly on responsible finance. ADB’s private sector clients have achieved carbon emissions reductions of 30.7 million tons annually.
Programs managed by ADB’s private sector operations achieved record volumes in 2019. The Microfinance Risk Participation and Guarantee Program facilitated $274.3 million in local currency loans to microfinance institutions throughout the region, benefiting low-income borrowers, particularly women. The Trade Finance Program supported transactions valued at $5.4 billion, while the Supply Chain Finance Program facilitated transactions valued at $118.7 million—half of which was cofinanced with partner financial institutions.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.