West Africa is characterized by small and medium-sized economies over a vast land area of over 5 million sq. km with nearly 30% of the continent's population. The geography is also marked by two distinct zones: coastal and Sahel countries.

It is the region of the continent with strong emerging regional cooperation under WAEMU & ECOWAS. The region has already achieved free movement of persons, goods and services, and is working towards a monetary union. Half of the sub-region has, however, experienced conflicts or socio-political instability recently.

All countries, except Cape Verde, are only eligible for ADF resources, with average per capita GNP of the region standing at barely US$ 500. Cape Verde has recently recorded high per capita GNP and has therefore moved into the Bank’s Category C countries. Nigeria, which is by far the biggest economy with about 150 million inhabitants, is still a Bank Group blend country with per capita GNP of 640 US$ in 2007.

Agriculture is the key regional recipient of Bank Group lending with special emphasis on poverty alleviation and the  pursuit of Millenium Development Goals.

Countries, land mass and population

West Africa comprises 15 countries which can be classified in two groups - CFA Franc and non-CFA Franc zones. 8 CFA Franc zone countries are: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The 7 other non-CFA Franc zone countries are: Cape-Verde, The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. The Bank Group is assisting with harmonization programmes to bring the two different zones under one monetary area in the near future.

The total population of the fifteen countries in 2006 was estimated at 266.9 million or 28.9% of the continent's total population, with a total land mass of 5.1 million sq km. or 16.8% of the continent’s land mass.  Nigeria, one of the most densely populated countries on the continent, accounts for slightly over 50% of the sub-region's total population, with a GNP per capita of US$560 in 2006.

GDP/GNP per capita and Bank Group country categories in the region

In 2006, the GDP of the region accounted for 15% of the continent's GDP, while the  per-capita GNP ranged from barely US$ 130 for Liberia to US$ 1850 for Cape Verde, with an average of just US$ 500.

The sub-region has the largest linguistic, geographical, natural resource and economic diversity, including landlocked and fragile states. Besides Nigeria and Cape Verde, all the sub-region's countries are ADF countries and can only receive ADF resources.

Cumulative Bank Group lending in the region as at end of 2007

Cumulative Bank Group loan and grant approvals to the sub-region from 1967 to 2007 amounted to UA 9.5 billion, equivalent to US$ 15.01 billion, accounting for 22.8% of Bank Group cumulative commitments to all regional borrowing countries. Of this amount, UA 5.40 billion, equivalent to US$ 8.53 billion or 56.8% of the amount was from ADF concessionary resources. West Africa is the second largest beneficiary of ADF cumulative loans and grants with 30.9% after East Africa which accounts for 31.8% of cumulative ADF concessionary resources as at the end of 2007.

Summary of country share of  Bank Group lending to the sub-region

Nigeria received the largest share of Bank Group cumulative commitments to West Africa (US$ 4.0 billion) followed by Côte d’Ivoire (US$1.8 billion), Ghana (US$1.7billion), Mali (US$1.1 billion ), Senegal (US$1.06 billion ), Burkina Faso (US$ 1.0 billion), Guinea (US$ 0.9 billion), Benin Niger Sierra Leone, Gambia, Togo, Guinea Bissau, Cape Verde and Liberia.

Sectoral distribution of Bank Group lending to the region

Over the 1967-2007 period, sectoral allocation of cumulative approvals shows agriculture received about UA 2.0 billion, equivalent to US$ 3.20 billion or about 22.1%, the social sector took UA 1.6 billion (US$ 2. 5 billion) or 17%, transport UA 1.31 billion (US$ 2.1 billion) or 13. 9%, multisectoral projects took UA 1.3 billion (US$ 2.0 billion) or 13.2%; water and sanitation UA 1. 0 billion (US$ 1.58 billion) or 10. 9%; finance  UA 0. 9 billion (US$ 1.40 billion) or 9.4%; industry UA 0. 7 billion (US$1.1 billion) or 6.9%; power UA 0.6 billion (US$ 0.95 billion) or 5.8%; communications UA 0.1billion (US$ 0.16 billion).

Sectoral distribution of ADF concessionary resources in West Africa shows that 28% of the resources are devoted to agriculture and rural development, 26% to human development, 23% to multisector and 23% to infrastructure.