AfDB Invests $24 Million in West African Development Bank to Boost Regional Development

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The African Development Bank Group (AfDB) has signed a landmark agreement for a $24 million equity investment in the West African Development Bank (BOAD). The funding aims to bolster BOAD’s capacity to support businesses across its member countries and drive regional economic growth.

The agreement was formalized on Wednesday during the Africa Investment Forum Market Days 2024 in Rabat, Morocco. Mr. Solomon Quaynor, Vice President of the AfDB for Private Sector, Infrastructure, and Industrialization, and Mr. Serge Ekué, President of BOAD, presided over the signing ceremony.

The investment includes $10.8 million in callable capital, available from 2023 to 2027, and will increase AfDB’s equity stake in BOAD from 0.54% to 1%. This capital boost follows a December 2022 approval by BOAD’s Board of Directors to raise its capital base.

Speaking at the ceremony, Mr. Quaynor emphasized the critical role of regional development finance institutions (DFIs) like BOAD.

“Regional DFIs like BOAD are key partners of the African Development Bank and serve markets and client segments that are critical to the overall development of the continent. They play an important role in promoting investments in strategic sectors and regional integration.” he said.

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The equity injection reinforces the long-standing partnership between the two institutions, enhancing AfDB’s influence within BOAD’s governance structure and supporting its initiatives in five fragile states within the West African Economic and Monetary Union (WAEMU).

The capital investment is expected to strengthen BOAD’s investment-grade credit rating, improving its ability to access financial markets at competitive rates. This will benefit WAEMU countries and the private sector by expanding funding opportunities for critical development projects.

This investment, aligned with AfDB’s “High 5” strategic priorities which include Feed Africa, Industrialize Africa, and Improve the Quality of Life for the People of Africa, highlights the Bank’s commitment to advancing sustainable development in the region.

The $24 million equity investment complements AfDB’s prior support for the WAEMU zone, including a line of credit extended to BOAD in November 2023. Together, these initiatives aim to drive economic transformation and improve livelihoods across West Africa.