The West African Development Bank (BOAD) and Proparco, a subsidiary of the Agence Française de Développement (AFD) Group, have signed a €200 million financing agreement, approximately CFAF 131 billion, in a cross-currency operation between the euro (EUR) and the CFA franc (XOF).
This transaction, structured by Galite, is described by the parties as a first-of-its-kind structure in terms of its design and ambition.
Boosting Financing for African Economies
Françoise Lombard, Chief Executive Officer of Proparco, said: “Together with BOAD, we are reaching a major milestone in our commitment to boosting financing for African economies, particularly within the WAEMU region.
She added that this initiative is fully aligned with the momentum to reform the development finance architecture by providing a tangible solution to increase the mobilization of local-currency resources in support of the private sector and local economies.
Lombard also stated, “I am delighted by this partnership, which embodies a truly win-win approach and reflects our shared determination to act with ambition and pragmatism to sustainably support the development of the private sector across WAEMU economies.
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Evolution of Development Finance Architecture
The financing structure is part of broader efforts to evolve aspects of the international development finance architecture, with a focus on expanding local-currency funding capacity and strengthening regional financial resilience across the WAEMU zone.
According to the institutions, the structure is intended to deliver three main outcomes: improved allocation of capital through expanded access to the XOF market and more diversified financing options for local businesses; enhanced macroeconomic stability through support for WAEMU foreign exchange reserves; and direct developmental impact through the financing of private-sector projects expected to contribute to job creation and economic activity in the region.
Serge Ekué, President of BOAD, said: “The partnership between BOAD and Proparco reflects the quality and depth of our strategic cooperation.
Ekué added, “Through this initiative, BOAD is reaffirming its role as a mobilizer of resources by attracting additional investment for the benefit of the region.
They consider expanding the range of available financing tools essential to sustainably support the transformation of WAEMU economies.
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Ekué also stated, “This transaction marks an important milestone in our collective ability to channel greater financing toward projects delivering strong economic and social impact across Africa.
The agreement between BOAD and Proparco is a significant step forward in their commitment to supporting the development of African economies.
As the region continues to evolve and grow.
It is likely that we will see more collaborations like this one, aimed at promoting economic development and stability.
