African Development Bank Commits $24 Million to West African Development Bank to Strengthen Regional Growth

The African Development Bank Group (AfDB) has announced a $24 million equity investment in the West African Development Bank (BOAD) to enhance business development and support in its member countries. This milestone was formalized during the Africa Investment Forum 2024 Market Days held in Rabat, Morocco. The agreement was signed by Mr. Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialisation, and Mr. Serge Ekué, President of BOAD.

Purpose of the Investment

The investment is part of BOAD’s capital increase plan, approved by its Board of Directors in December 2022. It includes $10.8 million in callable capital to be deployed between 2023 and 2027, raising AfDB’s shareholding in BOAD from 0.54% to 1%. This increased stake will strengthen AfDB’s influence on BOAD’s Board of Directors and enhance BOAD’s capacity to support its member states.

Strategic Importance of Regional DFIs

During the signing ceremony, Vice President Quaynor emphasized the critical role of regional Development Finance Institutions (DFIs) like BOAD in driving Africa’s economic transformation. He noted:

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

Impact on Member States

This equity injection will bolster BOAD’s investment-grade rating, improving its ability to access international financial markets at competitive rates. The benefits will extend across the West African Economic and Monetary Union (WAEMU), which includes five fragile states, enhancing BOAD’s capacity to support private-sector growth and regional integration.

Alignment with AfDB’s Strategic Goals

The collaboration aligns with three of AfDB’s High 5 strategic priorities:

1. Feed Africa
2. Industrialise Africa
3. Improve the Quality of Life for Africans

It reflects AfDB’s commitment to fostering sustainable development across the region by empowering BOAD to channel resources into strategic projects that stimulate economic growth and resilience.

Complementary Support for WAEMU

This equity investment builds on AfDB’s existing support for the WAEMU region, including a credit line extended to BOAD in November 2021 to promote private-sector growth. Together, these initiatives aim to drive sustainable development, enhance economic resilience, and unlock the region’s potential for inclusive growth.

This partnership underscores AfDB’s dedication to empowering regional financial institutions as catalysts for Africa’s economic transformation.