Improving Governance in Africa

• • What are your ethical business practices? Committed to good governance and to the promotion of ethical business practices as well as the endorsement of international standards of anti-corruption and transparency that apply to its operations • Adopted the Uniform Framework for Preventing and Combating Fraud and Corruption along with other Multilateral Development Banks in 2006: harmonized strategy for mitigating corruption and fraud for development effectiveness in projects financed by the multilateral banks Created an Integrity Due Diligence structure for private sector operations and other operations financed without a sovereign guarantee, premised on the institution's fiduciary and legal responsibilities to its shareholders and with attention to considerations of economy, efficiency and competitive trade Identification of Beneficial Ownership: will not proceed on a transaction without ascertaining the identity of the Beneficial Owners of such transaction Guiding Principles for Integrity Due Diligence (IDD) Assessment of Civil, Criminal, and Regulatory Backgrounds: closely evaluate the criminal, civil and regulatory history of the Counterparty and Significant Related Parties for Integrity Risk* Mitigation of Integrity Risks: The underlying objective of the IDD process should be to identify and mitigate Integrity Risks Sanctioned Persons and Entities: will not finance a Project where any of the Counterparty, Significant Related Party or their Beneficial Owners is debarred or cross- debarred by the Bank Group Monitoring of Integrity Risks and Enforcement of Covenants: effectively monitor Projects throughout the project cycle to identify early warning signs and indicators of Integrity Risks Politically Exposed Persons (PEPS) and Other High Risk Relationships: carry out enhanced IDD in addition to its standard IDD measures where PEPS are involved in a Project Record-Keeping: keep adequate and reliable records of all documentation involved in and steps taken throughout the IDD process *Integrity Risk is the potential for financial and non-financial loss including adverse reputational impact that may result from Unethical Practices in Projects and investment decisions 91

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