Convinced that the private sector should be a real development vector and a key source of economic growth, growth, wealth and job creation in the WAEMU countries, BOAD continuously adjusts, intensifies and diversifies its action towards the promotion and financing of private productive investments. The key areas and stages of BOAD’s strategy for the promotion and financing of the private sector are summed up as below :
- formulation of a “strategy for private sector promotion and financing” in December 1990;
- establishment in 1991 of a specific department for private sector promotion and financing, tasked with implementing its operational strategy;
- diversification of refinancing facilities and improvement of their conditions of utilization (lines of credit, specialized advance packages, refinancing framework-agreements, leasing);
- support to the organization of leasing activity and the inception in 1995 of the West African Association of Leasing Companies and the harmonization of leasing tax system;
- contribution to the diversification and deepening of the WAEMU financial system (inception of GARI Fund in 1995, Cauris Investissement, Cauris Croissance in 2006, bond loan floatations from 1993, facilitation of the capital market, contribution to the establishment regional stock exchange and promotion of microfinance);
- adaptation of procedures for approaching the private sector (re-reading of operational texts, accelerated appraisal and creation of a project prequalification committee);
- enhanced technical assistance to private economic operators for improved private business environment (support to the formulation of national strategies and organization of roundtables on the private sector);
- setting-up of a guarantee product for corporate bond loan floatation as part of BOAD’s pivotal role and as a source of confidence in the regional capital market;
- setting-up of a unit for financial advisory services, financing arrangement, fund raising and syndication;
- equity investment in the capital BOAD Titrisation, a securitization vehicle, to the tune of FCFA500 million;
- equity investment in the capital of the WAEMU Regional Mortgage Refinancing Bank (CRRH-UEMOA) to the tune of FCFA750 billion;
- setting-up of a unit devoted to public-private partnerships (PPPs).
Out of FCFA 4,202.1 billion of total net commitments as at 30 September 2016, BOAD devoted to the private sector about 24.3%, representing FCFA1,022.4 billion for 319 operations.