AfDB and BOAD Sign FCFA 28.7 Billion Investment Agreement
Tunis, 22 July 2008 – The African Development Bank Group (AfDB) and the West African Development Bank (BOAD) on Monday, in Tunis, signed a financial agreement comprising an equity participation, a line of credit and an institutional support amounting to CFAF 28.7 billion.
The support aims at strengthening BOAD’s financial and institutional capacity to consolidate its role as a sub-regional financial intermediary.
The AfDB package comprises a CFAF 2 billion participation in BOAD’s capital increase, a CFAF 26.24 line of credit and a CFAF 549 billion to BOAD's 2006-2010 investment programme. This is in line with the Bank Group’s vision for poverty reduction and regional economic integration in Africa. It is also in line with the Bank Group’s private sector development strategy which places emphasis on promoting partnerships with sub-regional development finance institutions.
The agreement was signed by the Bank Groups Vice President for Operations, Infrastructure, Private Sector and Regional Integration; Mandla S. Gantsho and BOAD President, Abdouolaye Bio-Tchane.
Speaking on the occasion, Mr. Gantsho described the BOAD as "a high-performing sub-regional development finance institution which is successfully executing its mission of financing the development of WAEMU (West African Economic and Monetary Union) member states." He expressed the hope that the assistance would enable BOAD scale up its activities to boost economic growth in its member countries.
The investment was approved by the AfDB Group Board of Directors on 30 January 2008. It is consistent with NEPAD objectives and the institutional support complements that of other development partners.
The line of credit will finance sub-projects in agribusiness, the manufacturing industry, mining, and services (hotel, trade and telecommunications). It is expected to generate many economic benefits, such as jobs, add value to products and develop exports, thereby improving living conditions in the WAEMU zone.
The Institutional support will enable BOAD to establish sound management practices that will help its financial performance. It will thus become a partner of the Bank in the financing of development by serving as a banking intermediary of the private sector in the WAEMU zone.
WAEMU was created by a treaty signed in Dakar, Senegal, on January 10, 1994 by the Heads of State and Government of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. On May 2, 1997, Guinea-Bissau became its eighth member state.
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