The African Development Bank Group has signed an agreement with the West African Development Bank (BOAD) for a $24 million equity investment that will enable the regional development bank to support businesses in member countries.
Mr. Solomon Quaynor, African Development Bank Vice President for Private Sector, Infrastructure and Industrialisation, and Mr. Serge Ekué, BOAD's President, signed the agreement on Wednesday during the Africa Investment Forum 2024 Market Days in Rabat, Morocco. The investment will contribute to BOAD's capital increase, approved by its Board of Directors in December 2022.
The funding includes $10.8 million in callable capital which will be available from 2023 through 2027. This additional participation will raise the African Development Bank's shareholding in BOAD from 0.54 percent to one percent.
Speaking at the signing ceremony, Vice President Quaynor emphasized the strategic importance of regional Development Finance Institutions (DFIs). "Regional DFIs like BOAD 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 regional integration," he said.
The investment underscores the strong partnership between the two development institutions, which share strategic objectives. By increasing its shareholding, the African Development Bank will enhance its presence on BOAD's Board of Directors, supporting the expansion development initiatives across the region, including five fragile states. The capital injection will reinforce BOAD's investment-grade rating and improve its capacity to access financial markets at competitive rates, benefitting states within the West African Economic and Monetary Union (WAEMU) and the private sector.
The investment also aligns with three of the Bank Group’s "High 5" strategic priorities: "Feed Africa," "Industrialise Africa," and "Improve the quality of life of Africans."
The $24 million equity investment complements African Development Bank's existing support for the WAEMU zone's private sector. The Bank extended a credit line to BOAD in November 2021.