6 min

The 132nd BOAD Board of Directors authorizes new commitments of 349.5 billion FCFA.

Cotonou, September 20, 2022. The Board of Directors of the West African Development Bank (WADB) met in person in Cotonou, Benin, for its 132nd ordinary session, under the chairmanship of Mr Serge EKUE, Chairman of the Board of Directors and President of the WADB.

Having approved the minutes of 131ème meeting, held on June 14, 2022, the Board approved the project to strengthen the BOAD’s capital base, which consists of a capital increase of around $900 million US and a US$600 million issue of hybrid securities.

The Board also approved the presentation note for BOAD’s interim accounts at June 30, 2022, and the statement of collection of receivables on BOAD loans at August 31, 2022.

Directors also approved an emergency program for member states and ten (10) new project financing proposals for a total of 349.5 billion FCFA. These new approvals bring to 7 067.6 billion FCFA the total commitments (all operations included) of the BOAD since the start of its operational activities in 1976.

The Rapid Impact Emergency Program (SONGTAABA Program)
2022-2024), worth 200 billion FCFA , aims to help improve living conditions in the UEMOA and strengthen the region’s resilience to current shocks. This will include: 1) contribute to the implementation of the G5 Sahel’s National Crisis Response Plans (NCRP) and Emergency Development Program (UDP), 2) rapidly make resources available in one or more instalments, in order to respond to the urgent need for food, re-enrolment and basic health care in the wake of soaring commodity prices and insecurity.

The loans approved concern the partial financing of the following projects :

  • The establishment and operation of an integrated cotton processing unit by Société des Textiles du Bénin (STB) in the Glo-Djigbe industrial zone in Benin. The project involves the construction and operation of an integrated cotton fiber-to-clothing unit, with an annual capacity of 10,000 tonnes. 000 tonnes. Its implementation will make it possible to produce 19 million garments (polo shirts and T-shirts) per year, promote local processing of Beninese cotton, and create added value and jobs. Amount of the operation :  10 milliards FCFA ;
  • Setting up an index-based crop insurance mechanism in the Republic of Côte d’Ivoire. This insurance mechanism will protect cotton, oil palm and rice producers against yield losses due to climatic hazards. The project also provides support and capacity-building for the cashew nut and maize sectors, and raises awareness of index-based crop insurance among agricultural players and stakeholders. Amount of the operation : 10 milliards FCFA ;
  • Construction of the Mékhé-Ndande section of the Dakar-Tivaouane-Saint Louis freeway, in the Republic of Senegal. Constructed as a 2×2 lane road with a central median strip, this infrastructure will promote economic development, in particular through the development of agriculture, mining, fishing and tourism in the project area. Amount of the operation : 15 billion FCFA ;
  •  The implementation of a unified and open platform for Urban Video Protection (UVP) in six (6) secondary cities and six (6) main stadiums in the Republic of Côte d’Ivoire. The project will contribute to enhancing urban security through the deployment of a unified, automated digital system based on video surveillance. Amount of the operation : 15 billion FCFA ;
  • The transformation of the SOCOPAO quay into an oil wharf by PETROCI in the Republic of Côte d’Ivoire. The project aims to guarantee the supply of petroleum products to Côte d’Ivoire, mainly butane gas, and to ensure the safety of ships. Amount of the operation :  30 milliards FCFA ;
  • Modernization and Extension of SBEE Networks (ProMER) in the Republic of Benin. The densification and reinforcement of Medium and Low Voltage (MV and LV) distribution networks in the regional centers of Atacora-Donga, Zou-Collines, Mono-Couffo, Borgou-Alibori and Atlantique will enable the connection of more than 16,000 additional subscribers by 2026. The extension will also help to improve living conditions for the local population. Amount of the operation : 27 milliards FCFA ;
  • Partial guarantee of a short-term facility granted by Banque Atlantique Côte d’Ivoire (BACI) to Compagnie Ivoirienne de l’Electricité (CIE). This guarantee will provide short-term financing for CIE’s cash requirements, enabling it to pay invoices to independent power producers (IPPs) and natural gas suppliers on time. Amount of the operation : 10 billion FCFA ;
  • Building and equipping the Virtual University of Burkina Faso. The aim of the project is to promote the quality and accessibility of higher education training opportunities, while ensuring their relevance to the socio-economic needs of the country and the sub-region. contribute to the integration of information and communication technologies for education in higher education and research in order to increase access and improve quality contribute to improving the working environment and productivity of the administrative staff of the Université Virtuelle du Burkina Faso. Amount of the operation : 7.5 billion FCFA ;
  •  The establishment of a refinancing line for the Banque de l’Union Côte d’Ivoire (BDU CI), as part of the program to revive the activities of UEMOA companies affected by the Covid-19 health crisis. This operation will provide the private sector, in particular Micro, Small and Medium-sized Enterprises (MSMEs), with financing tailored to their various liquidity needs inherent in the COVID 19 crisis, short-term business recovery and medium-term productive investment to strengthen or optimize production tools. Amount of the operation : 10 billion FCFA ;
  • Establishment of a short-term line in favor of BGFIBANK Côte d’Ivoire (BGFIBANK CI), for the partial refinancing of the 2022-2023 cocoa campaign in Côte d’Ivoire. This line is intended to finance the collection of 28 000 tonnes of cocoa for export and local processing. Amount of the operation : 15 billion FCFA.

The Board of Directors also approved :

  • A fourth line of credit from KfW to  BOAD to finance micro, small and medium-sized enterprises (MSMEs)  in the amount of CFAF 65.595 billion ;
  • A third readjustment of the terms of the BOAD loan for the partial financing of the project for the creation of a telecommunications network by Société Alpha Télécommunication Mali SA (ATEL MALI SA) in the Republic of Mali ; 
  • Rearrangement of the terms of the BOAD loan for the partial financing of the construction of a four-star business hotel called “Azalaï” by Compagnie Hôtelière de la Lagune (CHL) SA in Abidjan, Côte d’Ivoire.

In closing the proceedings, Chairman Serge EKUE, on behalf of the Board of Directors, thanked the Beninese authorities for the resources they had provided to ensure that the session could be held in the best possible conditions.

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[1 ] SONGTAABA in Moré means ” mutual aid in difficult situations “.