By Christian.conteh@awokonewspaper.sl
Freetown, SIERRA LEONE- The African Development Bank (AfDB) has signed a landmark agreement to invest $24 million in equity in the West African Development Bank (BOAD), aiming to strengthen private sector development across member countries of the West African Economic and Monetary Union (WAEMU).
The agreement was formalized during the Africa Investment Forum 2024 Market Days in Rabat, Morocco, by Mr. Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialisation, and Mr. Serge Ekué, BOAD President.
This investment, a key component of BOAD’s capital increase approved in December 2022, will raise AfDB’s shareholding in BOAD from 0.54% to 1%, reinforcing its influence in the regional development institution.
Breakdown of the Investment- The $24 million package includes $10.8 million in callable capital, which will be disbursed incrementally from 2023 through 2027. The infusion is expected to bolster BOAD’s investment-grade rating, improving its ability to access financial markets at competitive rates and enhancing its capacity to finance projects in member states.
Strengthening Regional Development- At the signing ceremony, AfDB Vice President Quaynor highlighted the pivotal role of regional Development Finance Institutions (DFIs) like BOAD in driving sustainable growth. “Regional DFIs are essential partners for the African Development Bank. They target critical market segments and strategic sectors that promote regional integration and economic development,” he noted.
BOAD plays a key role in the WAEMU zone, which includes eight member states, five of which are classified as fragile economies. The investment will enable BOAD to scale up initiatives that promote regional integration, industrialization, and agricultural development while improving living standards.
Strategic Impact- This investment aligns with three of AfDB’s “High 5” strategic priorities: “Feed Africa,” “Industrialise Africa,” and “Improve the Quality of Life for the People of Africa.” It builds on a history of collaboration between AfDB and BOAD, including a credit line extended in 2021 to support the WAEMU zone’s private sector.
By increasing its stake, AfDB will also enhance its participation on BOAD’s Board of Directors, enabling greater alignment on strategic development objectives.
This $24 million equity investment reflects AfDB’s continued commitment to strengthening regional development finance institutions. By empowering BOAD, AfDB is helping unlock opportunities for private sector growth, improve access to financial markets, and drive progress in fragile and underserved economies in West Africa. CC/7/12/2024
