| 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 |
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.
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.
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.
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Funding
African Development Bank
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| IATI identifier | 46002-P-Z1-H00-083 |
| Last Update | 03 Oct 2022 |
| private-sector@afdb.org |
| Country | Multinational |
| Coordinates | Location Name |
|---|---|
| 6.13748 1.21227 | Lomé |
| 5.30966 -4.01266 | Abidjan |
| 6.36736 2.4225 | Cotonou |