AfDB in €64m Financial Support for West African Development Bank
The African Development Bank (AfDB) and the West African Development Bank (WADB) signed a loan agreement of a capital subscription of EUR 3.05 million and a line of credit of EUR 64 million to the West African Development Bank (WADB). The objective of this facility is to strengthen WADB’s financial capacities and to assert its role as a strategic partner of AfDB in financing the private sector, the engine of growth in West Africa.
The AfDB is a historic partner of WADB, as it has participated to its capital increase since 1987. This new facility succeeds the one granted in January 2008 which included a €40 million line of credit with a ten-year maturity, an equity investment of just over €3 million. and institutional support of USD 953,000.
In his statement during the ceremony, Tim Turner, Director of AfDB’s Private Sector Operations, highlighted the importance of AfDB’s financial assistance to WADB and stated that “granting this facility is motivated by the rapid development of WADB activities, which requires mobilizing additional resources to address growing investment demand from private economic players in its area of intervention.”
Christian Adovelande, president of the WADB, thanked the AfDB for this financial assistance and added that “this loan reinforces the exemplary cooperation between the two institutions in the technical, operational and financial sectors.”
The line of credit will endow WADB with the medium and long-term resources needed to finance its development strategy for private sector investment whose main targets are: (i) sectors with high job-creation potential (mining, agriculture, industry, services) especially in rural areas. (ii) an increase in adding value to regional production and (iii) export development.
The project is in line with: (i) the AfDB’s poverty reduction strategy which promotes regional economic integration, (ii) the AfDB’s assistance strategy for sub-regional development finance institutions, and (iii) the desire to forge partnerships with development finance institutions having strategic priorities similar to those of the African Development Bank.