Independent Evaluation of Bank Group Equity Investments

This report and associated knowledge products present the findings of an evaluation of the Bank Group’s Equity Investments. This evaluation was conducted to inform the Bank’s decisions on the future use of equity investments by identifying lessons and potential areas for improvement. The evaluation assesses the relevance and performance of the Bank’s equity investments; and identifies lessons, recommendations and areas for improvement.
The evaluation covers the combined fund and direct investments in the equity portfolio, which represent capital commitments of UA 740M and disbursements of UA 475M (64%) of capital commitments.
Several data collection methods were used. These included a literature review on the latest trends and issues related to equity investments in Africa, a thorough portfolio and program review to assess trends, measure risk, and complete bottom-up cash flow projections to support pacing and liquidity analysis, a survey of all fund managers, field visits to a sample of projects to collect development outcomes (DO) indicators, a financial database sourced from quarterly and audited financial statements of the funds partnership, and a benchmarking analysis comparing the Bank’s portfolio with a customized private equity fund focused on Africa and with relevant benchmarks of public market securities.