African Development Bank Invests $24 Million in West African Development Bank to Boost Regional Development
The African Development Bank Group (AfDB) has committed a $24 million equity investment to the West African Development Bank (BOAD) to bolster business support and development in member countries. The agreement was formalized during the Africa Investment Forum 2024 Market Days in Rabat, Morocco, with Mr. Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialisation, and Mr. Serge Ekué, President of BOAD, signing the accord.
The investment will contribute to BOAD’s capital increase, approved by its Board of Directors in December 2022, and includes $10.8 million in callable capital to be made available from 2023 through 2027. This will elevate AfDB’s shareholding in BOAD from 0.54% to 1%, strengthening its influence on BOAD’s Board of Directors.
Speaking at the signing ceremony, Vice President Quaynor highlighted the pivotal role of regional Development Finance Institutions (DFIs) like BOAD. “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 regional integration,” he said.
The investment will reinforce BOAD’s investment-grade rating, enhancing its ability to access financial markets at competitive rates. This, in turn, will benefit member states within the West African Economic and Monetary Union (WAEMU), including five fragile states, and support private-sector growth.
The collaboration reflects a strong partnership between AfDB and BOAD, aligning with three of AfDB’s “High 5” strategic priorities: “Feed Africa,” “Industrialise Africa,” and “Improve the Quality of Life for Africans.”
This equity injection complements AfDB’s ongoing support for the WAEMU zone’s private sector, which includes a credit line extended to BOAD in November 2021. Together, these initiatives aim to drive sustainable development and economic resilience across the region.
