AfDB’s Capital Markets Trust Fund Drives Transformative Growth Across Africa in Five Years
The African Development Bank Group’s Capital Markets Development Trust Fund (CMDTF) has marked its fifth anniversary with significant achievements that are reshaping Africa’s financial markets. Since its inception, the Fund has trained 763 capital markets professionals—37% of whom are women and mobilized $15 million to implement 13 transformative projects across 15 countries.
Established to provide technical assistance and capacity building, CMDTF has focused on strengthening regulatory frameworks, modernizing market infrastructure, diversifying financial products, and increasing investor participation across African capital markets. Key donors include the Netherlands, Luxembourg, and the Swedish International Development Cooperation Agency (SIDA).
The milestone was commemorated on May 28 during a panel discussion in Abidjan, held on the sidelines of the African Development Bank’s 2025 Annual Meeting. The event featured representatives from the Central Bank of Liberia, Côte d’Ivoire’s Caisse des Dépôts et Consignations, the Dépositaire Central/Banque de Règlement (DC/BR), and the African Development Bank Group.
CMDTF has been instrumental in pioneering market innovations across the continent. In Nigeria, it supported the Securities and Exchange Commission to design a risk-based supervision framework aligned with international standards, enhancing investor confidence.
The Fund also championed derivatives market development and facilitated green bond issuance training with the Nigerian Exchange Group, positioning Nigeria as a leader in sustainable finance.
In Ghana, CMDTF developed guidelines for asset-backed securities, paving the way for mortgage-backed securities and improved market liquidity. The Fund has also contributed to the West African Monetary Union’s roadmap for local currency bond markets and upgraded financial market infrastructure.
A notable achievement includes financing Cape Verde’s first-ever Capital Markets Master Plan, a blueprint for sustainable growth that earned the African Development Bank recognition as the Cabo Verde Stock Exchange’s Partner of the Year.
Mark Zellenrath, Director for Multilateral Organizations and Human Rights at the Ministry of Foreign Affairs of the Netherlands, lauded the Fund’s progress: “The facility is boosting investor and stakeholder confidence, driving product diversification, and laying the groundwork for deeper, more resilient capital markets across the region.”
Looking ahead, CMDTF’s 2023–2026 strategy aims to deepen its impact in existing markets and expand into new regions. The Fund plans to focus on innovative solutions such as green bonds, gender-lens investing, and SME finance tools. To support these ambitions, CMDTF is targeting an additional $15 million in new commitments.
Ahmed Attout, Director for Financial Sector Development at the African Development Bank Group, emphasized the Fund’s critical role: “The demand for agile, targeted technical assistance is stronger than ever, and CMDTF is uniquely positioned to meet this need. The next five years are key for driving collaboration and delivering innovative market-driven solutions.”
Managed by the Capital Markets Development Division within the Bank’s Financial Sector Development Department, CMDTF continues to support the development of resilient, integrated African capital markets, complementing the Bank’s broader investment and lending operations.
