BOAD signed two loan agreements totaling XOF25 billion for financing the second phase of the local economic development support programme (PADEL) and the financial inclusion promotion project to facilitate access for low-income populations to financial services in Burkina Faso (PPFIB)
Ouagadougou, 26 September 2019. Messrs. Christian Adovelande, President of the West African Development Bank (BOAD), and Lassané Kabore, Minister of Economy, Finance and Development of Burkina Faso, signed two loan agreements totaling XOF25 billion for financing the second phase of the local economic development support programme (PADEL) and the financial inclusion promotion project to facilitate access for low-income populations to financial services in Burkina Faso (PPFIB)
Under these agreements, the Bank undertakes to finance to the tune of XOF20 billion the local economic development support programme (PADEL) in its second phase. The purpose of the project is: (i) the construction on behalf of the populations and communities of a set of production, marketing and communication facilities to support their economic activities in six (6) regions in Burkina (Cascades, Central, Centre-West, South-West, Hauts-Bassins et Central Plateau); (ii) the granting of XOF1 billion credit facility to support 3,000 very small and micro-enterprises; (iii) and the building of technical capacities for 2,000 informal production units. By 2022, the programme would help: (i) reduce infrastructural gaps at inter-regional and intra-regional levels by supplying modern power services and basic socio-economic infrastructure to the populations, communities and very small and micro-enterprises; (ii) build dynamic, prosperous and inclusive local economies; (iii) contribute to job creation; and (iv) fight against poverty by generating additional wealth.
As regards the second loan involving XOF5 billion, it is meant for financing the financial inclusion promotion project to facilitate access for low-income populations to financial services. This project aims to support the Burkinabe government in its efforts towards the financial inclusion of low-income populations and very small and micro-enterprises, through financial institutions including decentralized financial systems to foster access to microfinance for 1,302,000 beneficiaries, when fully deployed. The development objectives set for the first phase of the project by 2020 include: i) building technical and financial capacities for stakeholders, including the Burkina national fund for financial inclusion (FONAFIB) and decentralized financial systems in order to provide, as from the second year of commissioning, access to microfinance for 300,000 women and men with low-income; ii) promoting and strengthening links between banks and decentralized financial systems with a view to increasing financial inclusion supply to farmers, craftsmen, women and jobless youths; and iii) putting in place relevant and professional mechanisms as well as support to beneficiaries and decentralized financial systems.
These two operations bring BOAD’s cumulative support to rural development and social projects in Burkina Faso to XOF163 billion, or 17.66% of its cumulative commitments to the Union member countries’ economies in the same area. With these last two loans, BOAD’s cumulative commitments towards Burkina Faso amount to XOF615 billion.
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