MULTINATIONAL - Project to Support the Private Sector in WAEMU Zone through the Provision of Long-Term Resources (LOCs Equity Participation) to the West African Development Bank (BOAD)


Project Summary

Approval Date 13 Dec 2021
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Environmental Category FI-B 
Commitment U.A 56,566,570.77
Status Approved

Project General Description

The project comprises two components, namely: (i) Provision of a EUR 70 million Line of Credit to Support Private Sector Enterprises in West African Economic and Monetary Union (WAEMU) Member Countries; and (ii) USD 24 million Equity Investment in West African Development Bank (BOAD)’s General Capital Increase. This equity investment will allow the AfDB to own 1% of BOAD's capital, the new threshold below which a shareholder may not sit on the Board of Directors (the current level of equity ownership is 0.55%). This investment is crucial to the AfDB as the similarities and complementarities between their strategic priorities make BOAD a perfect partner for leveraging and optimizing the outcomes of the Bank’s actions in West Africa. The LOC resources will be on-lent particularly to the enterprises involved in agricultural value chain development and job creating service sectors. In addition, the AfDB will assist BOAD in setting up a technical assistance mechanism for mainstreaming gender issues in its project review process and promoting women’s entrepreneurship.

Project Objectives

The project will (i) strengthen BOAD in its role as the Bank's strategic partner in private sector financing in West Africa with an increased level of capitalization allowing it to present better capital adequacy ratios, to hope for a better risk rating and greater credibility on the international financial markets; (ii) access to medium and long-term resources, identified by BOAD in its strategic plan as a constraint to the achievement of its development mission, (iii) a better match between its resources and its uses.

Beneficiaries

The project will mainly benefit the West African Development Bank (BOAD), the member states of the West African Economic and Monetary Union (WAEMU) as well as companies acting within the framework of the reinforcement of agricultural value chains and in the employment-generating services sector of the zone.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-Z1-H00-083
Last Update 03 Oct 2022

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Multinational
Coordinates Location Name
6.13748 1.21227 Lomé
5.30966 -4.01266 Abidjan
6.36736 2.4225 Cotonou