West African Development Bank

{{Infobox organization | name = West African Development Bank | native_name = Banque Ouest Africaine de Développement (French) | image = ASC Leiden - F. van der Kraaij Collection - 09 - 064 - Le siège moderne de la Banque Ouest-Africaine de Développement (BOAD) - Lomé, Togo - 1981.tif | imagesize = | caption = 1981 | map = West African Development Bank Map.png | map_size = | map_alt = | map_caption = West African Development Bank Map | abbreviation = BOAD | motto = | formation = 14 November 1973 (1973-11-14) | type = Development finance institution | status = Treaty | purpose = | headquarters = Lomé, Togo | coords = | region = West Africa | services = | membership = 8 countries | language = | sec_gen = | leader_title = Chairman of the Board of Directors and President of BOAD | leader_name = Serge Ekue | leader_title2 = | leader_name2 = | board_of_directors = | key_people = | main_organ = | parent_organization = | subsidiaries = | secessions = | affiliations = West African Monetary Union | budget = | staff = 291 (2013) | volunteers = | slogan = | website = www.boad.org/en | remarks = | formerly = | footnotes =

About the West African Development Bank (BOAD)

The West African Development Bank (BOAD) is an international public institution established by a treaty signed on 14 November 1973. It is the common specialized institution of the eight member countries of the West African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. Its mission is to address poverty, promote the balanced development of its member countries and achieve regional integration. The institution is headquartered in Lomé (Togo), and has a Resident Mission in each of the seven other member countries of the Union. The Bank’s objective is to "promote the balanced development of member countries and contribute to economic integration in West Africa" by financing priority projects in rural development, basic infrastructure, modern infrastructure, telecommunications, energy, industry, transport, agro-industry, tourism and other services.

Historical background

Two key ideas, stemming from the clear political will of WAMU countries, led to the studies that further inspired the creation of BOAD from 1969 onwards: • Derive greater benefits from their common membership beyond the Monetary Union, which could influence the development of member countries; • Leverage the operating profits of BCEAO (Central Bank of West African States) for the financing of joint development actions. The Central Bank was then tasked with studying the objectives, structures and resources of the common institution to be established. The initial draft of the new Monetary Union Treaty presented to the Committee of Ministers held in Ouagadougou from 14-16 March 1973, provided for the creation of common development financing institutions alongside the reformed Central Bank. Therefore, on 14 November 1973, the Heads of State of the Monetary Union signed the new treaty establishing the Monetary Union with annexed new Articles of Association of the Central Bank and the agreement establishing the West African Development Bank (BOAD). BOAD's fortieth anniversary was celebrated in Lomé in November 2013. The event was marked by an international symposium on the new challenges facing the WAEMU. Green growth was one of the thematic presentations. The potential of energy transition in the WAEMU was recognized leading to research at the University of Paris-Sorbonne. In July 2023, BOAD granted XOF162.330 billion in new financing for nine projects in Senegal, Togo and Cote d'Ivoire.

Shareholding structure

The following countries or institutions represent BOAD’s shareholders and participate in its administration: Class A shareholders: • the Republic of Benin ; • Burkina Faso; • the Republic of Cote d'Ivoire; • the Republic of Guinea-Bissau; • the Republic of Mali; • the Republic of Niger; • the Republic of Senegal; • the Republic of Togo; • the Central Bank of West African States (BCEAO), the common issuing institution of the eight WAEMU member countries. Class B shareholders: • the French Republic ; • KfW, acting on behalf of Germany. • the Kingdom of Belgium ; • the European Investment Bank (EIB), acting on behalf of the European Union; • the African Development Bank (AfDB); • Exim Bank of India, acting on behalf of the Republic of India; • the People's Bank of China, acting on behalf of the People's Republic of China; • the Kingdom of Morocco.

Pursuant to a decision taken at its ordinary meeting held in December 2023, the Union's Council of Ministers approved the entry of the Arab Bank for Economic Development in Africa (BADEA) into BOAD's capital.

Resources

BOAD's resources are derived primarily from: • Capital subscribed by its regional and non-regional shareholders; • Contributions from its member countries; • Its reserves; • Mobilization of regional savings; • Mobilization of resources from outside the Union.

Mission

Since its establishment, BOAD has mobilized resources to finance both public and private sector projects. It is the leading non-sovereign issuer on the regional capital market. Over more 40 years of activity, the Bank has also gained and capitalized on extensive experience in project evaluation and financing. This expertise covers a wide range of areas across sectors of economic life. Due to its acquired experience over the years, BOAD has served as a intermediary for major development finance institutions and various bilateral cooperation entities.

Areas of intervention

BOAD's areas of intervention include: • Rural development and food security ; • Industry and agribusiness; • Basic and modern infrastructure (roads, telecommunications, airports, ports, energy); • Transport, hospitality and other services.

Forms of intervention

BOAD intervenes in one of the following forms: • Long- and medium-term loans; • Equity participation in companies or national financial institutions (NFI); • Short-term financing operations; • Financing of feasibility or engineering studies; • Assistance to small and medium-sized enterprises (SMEs) through credit lines or refinancing framework agreements granted to NFIs; • Loan relief by providing interest rate subsidies for non-commercial sector projects; • Assistance in the preparation, promotion, and implementation of projects; • Guarantees for bond loans; • Project financing arrangements; • Financial advisory services.;

Beneficiaries of BOAD’s interventions

The following entities are eligible for BOAD’s funding: • WAEMU member countries; • Their local authorities and public institutions; • Organizations, companies and individuals contributing to the development or integration of member countries’ economies; • Non-WAEMU countries in the sub-region, their organizations or companies, as the Bank may intervene in development actions involving both a WAEMU country and a non-member country.

Operations

The Bank operates through two main financing windows: the concessional window, known as the Development and Cohesion Fund (FDC), and a commercial window. The FDC focuses on financing public development projects in member countries (infrastructure to support production, rural development and food security, social projects, etc.) for the benefit of local populations, using concessional resources (flexible interest rates and maturities.) The commercial window uses market-based resources to finance commercial investment projects promoted by governments and public and private companies. Additionally, the Bank has introduced a third and more recent window, the Energy Development Fund (FDE). This fund established as part of the "Regional Initiative for Sustainable Energy," is dedicated to supporting energy projects and is overseen by BOAD.

Cooperation

BOAD maintains cooperation or financing relations with many countries including Germany, Belgium, China, France, India, Japan, Morocco and Switzerland. Agreements have also been established with institutions such as the African Solidarity Fund (ASF), the French Development Agency (AFD), the African Development Bank (AfDB), the Islamic Development Bank (IDB), the People's Bank of China, the World Bank, the Eximbank, KfW, the Organisation internationale de la Francophonie (OIF), the FAO, the Permanent Inter-State Committee for Drought Control in the Sahel (CILSS), etc. Efforts are underway to expand cooperation with other countries and institutions, including Brazil, Turkey and the European Union.

Administration

The Bank is directed and managed by: • A President appointed by the WAEMU’s Council of Ministers, assisted by two Vice-Presidents appointed by the Board of Directors; • A Board of Directors composed of:  The President of the Bank, Chairman of the Board;  Two representatives appointed by each of the WAEMU member countries;  The Governor of the Central Bank of West African States (BCEAO) or his/her representative;  Representatives from each class B shareholder holding at least 1% of the capital.

Presidents of BOAD

• Pierre Claver Damiba (1975-1981) • Abu Bakar Baba-Moussa (1982-1994) • Thomas Boni Yayi (1995-2006) • Issa Coulibaly (interim) (2006-2008) • Abdoulaye Bio Tchané (2008-2011) • Christian Adovelande (2011-2020)1 • Serge Ekué (since August 2020)

References

External links

Authority control databases
International	VIAF
National	United States
Other	IdRef