Ebene, 2 August 2022 – The Eastern and Southern African Trade Fund (ESATF) is an open-ended collective investment fund domiciled in Mauritius and regulated by the Financial Services Commission (FSC). The fund was launched in 2019 to advance trade-led economic and social development via the financing of short to medium-term trade transactions in TDB Group member states and other select African economies, including those of SMEs.
ESATF is managed by Eastern and Southern African Trade Advisers Limited (ESATAL), a fund manager also regulated by FSC, which until recently, was jointly owned by the Eastern and Southern African Trade and Development Bank (TDB) and GML Capital LLP (GML Capital).
Following an extensive review of its strategic approach to asset management, TDB redeemed the minority shares of its London-based partner GML Capital on 30 June 2022, making TDB the sole shareholder of ESATAL as of 1 July 2022.
ESATF has delivered a steady annual performance of 3.52% in 2021 and an absolute return of 11.50% since launch, and more than doubled its starting asset base to USD112mn – enabling TDB Group to expand its trade finance operations including outside of its footprint to other African economies.
Admassu Tadesse, TDB Group President Emeritus and Managing Director said: “Throughout the years, TDB has reformed and transformed into a group structure with several subsidiaries including ESATAL, and a wider geographic scope covering the COMESA-EAC-SADC Tripartite region, and select African economies that align well with AfCFTA ambitions. We are proud of our journey so far with ESATAL, and appreciate GML Capital for their valuable contributions as an early-stage partner as ESATF was set up and launched”.
Daniel Lam Chun, TDB Group Executive, Coverage Indian Ocean-Lusophone Africa says: “Building on TDB Group’s deep knowledge and expertise in trade finance asset class funding and with the same senior executives and key staff remaining involved in ESATAL, no transition will be required following this transaction, with the fund’s activities and strategy remaining unchanged. ESATF will continue to invest in trade finance, structured commodity finance, export finance, and project related finance transactions, with the objective to expand triple bottom line impact and reach of TDB Group activities in the region it serves, while delivering steady returns with low volatility and an emphasis on impact investing”.
TDB Group brings to ESATF deep knowledge in the area of trade finance funding, accumulated over 35 years operating across its 22 member states; this asset class is the primary investment mandate of ESATF.
About TDB, ESATAL and ESATF
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based, investment-grade development finance institution, with 41 sovereign and institutional shareholders and assets of USD 8 bn. TDB serves 22 economies in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development through trade finance, project and infrastructure finance and asset management.
Eastern and Southern African Trade Advisers Limited (ESATAL) is a subsidiary of TDB Group, and manager of the Eastern and Southern African Trade Fund (ESATF), a trade finance fund which focuses on advancing trade-led economic and social development via the financing of short to medium-term trade transactions, including those of SMEs. ESATAL and ESATF are part of TDB Group’s asset and fund management activities which are focused on the design, origination, and growth of stand-alone investment vehicles for a wide range of investors and development partners.
ESATAL is a limited liability company, based in Mauritius, authorised and regulated by the Financial Services Commission (Mauritius). ESATAL has been granted a Category 1 Global Business Licence (C1/GBL, Company No 128925) under Section 72(6) of the Financial Services Act, and has a CIS Manager Licence pursuant to Section 98 of the Securities Act 2005 and the Financial Services (Consolidated Licensing and Fees) Rules 2008.
TDB and ESATAL are part of TDB Group, which also comprises TDF (the Trade and Development Fund), TCI (TDB Captive Insurance), and the TDB Academy.
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