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West African Development Bank
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The West African Development Bank - WADB (fr. Banque Ouest Africaine de Développement - BOAD / pt. Banco de Desenvolvimento do Oeste Africano - BDOA) was established in 1973 to serve the nations of Francophone and Lusophone West Africa. The BOAD is organised by the Central Bank of West African States and its eight member governments: Benin, Burkina Faso, Guinea Bissau, Côte d'Ivoire, Mali, Niger, Senegal and Togo. It is funded by member states, foreign governments and international agencies. Its headquarters are in Lomé, Togo.
Key Information
Creation
[edit]The BOAD was created on 14 November 1973 by member states of the West African Monetary Union (WAMU). The original charter focused on development of member economies towards balanced development and to prepare economies for future West African economic integration. In 1994, it became the development arm of the West African Economic and Monetary Union (WAEMU/UEMOA).
Structure
[edit]Since that time several international organisations have become members of the bank, adding funding and sitting on the board. These include the African Development Bank, the European Investment Bank, the Export and Import Bank of India (Exim Bank),[1] and the People's Bank of China.[2] The president of the bank's board is chosen by the heads of state of UEMOA, and since January 2008, Abdoulaye Bio-Tchane. The bank's day-to-day operations are carried out by the President and the Bank adminmanager, cabinet, directorships of departments based in Lome, and mission offices based in the member nations.[3]
Mission
[edit]The BOAD released a revised mission statement in 2001, refocusing their funding on three development goals: poverty reduction, economic integration and promotion of private sector activity. The bank disburses long- and medium-term loans, previously available only to BOAD member governments and public institutions, are since 2002 also offered to private businesses involved in development projects of regional importance as well as lines of credit to finance Micro-credit projects and small to medium private enterprises. The BOAD also funds debt-relief programs to member governments with the agreement that funds are instead diverted to health programmes particularly those dealing with HIV/AIDS, education and infrastructure improvements.[4]
Headquarters
[edit]The bank is headquartered in Lome, Togo, in a seven-story modernist building designed by the French architects Durand, Menard, and Thiebault in 1980.[5]
Gallery
[edit]-
BOAD, Lomé, Togo, 1981 -
BOAD, Lomé, Togo, 1981
References
[edit]- ^ Exim Bank buys stake in West African Development Bank, Financial Express, 4 November 2004
- ^ CHINA TO TAKE STAKE IN WEST AFRICAN DEVELOPMENT BANK AsiaInfo Services, December, 2004
- ^ "organisation:boad.org". Archived from the original on 2009-01-06. Retrieved 2008-09-18.
- ^ "PERSPECTIVES:boad.org". Archived from the original on 2007-08-10. Retrieved 2008-09-18.
- ^ Archnet entry Archived 2011-05-25 at the Wayback Machine.
Further reading
[edit]
Wikimedia Commons has media related to Banque Ouest-Africaine de Développement.
- West African Development Bank (Boad) Handbook. Intl Business Pubns USA; 6 edition (2007) ISBN 1-4330-5912-6
External links
[edit]
West African Development Bank
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History
Founding and Operational Launch
![West African Development Bank headquarters in Lomé][float-right] The West African Development Bank (BOAD), known in French as Banque Ouest Africaine de Développement, was founded through an agreement signed on November 14, 1973, by the eight member states of the West African Monetary Union: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.[6][2] This establishment addressed the perceived limitations of benefits from broader international financial institutions for West African nations and aimed to create a sub-regional entity capable of mobilizing resources for priority development projects.[7] The initiative sought to foster economic integration and support infrastructure, agriculture, and industry sectors deemed essential for regional growth.[7] Following ratification, BOAD commenced operations in 1976, marking its operational launch with the establishment of headquarters in Lomé, Togo, selected for its strategic neutrality among member states.[6][2] This launch enabled the bank to begin financing development initiatives tailored to the economic needs of Francophone and Lusophone West Africa, distinct from pan-African or global bodies.[8] The founding capital structure reflected equal shareholding among members, underscoring a commitment to collective regional advancement without dominance by larger economies.[9]Expansion and Reforms
Following its operational launch in 1976, the West African Development Bank (BOAD) pursued reforms to broaden its lending capacity and adapt to regional economic needs, including amendments to its statutes in the early 2000s that enabled non-member states within the Economic Community of West African States (ECOWAS) to access financing, thereby expanding its operational scope beyond the eight founding Union Économique et Monétaire Ouest Africaine (UEMOA) member states.[6] This adjustment supported greater subregional integration without altering core membership, which remains limited to Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.[1] By 2013, BOAD established the Lomé Regional Collaboration Center to extend climate-related initiatives across 26 French-speaking countries in West and Central Africa, marking a geographic expansion in targeted programs.[4] Key reforms have centered on capital augmentation to bolster lending firepower amid growing infrastructure and development demands. In 2022, BOAD initiated a landmark $1.5 billion capital increase—the largest in its history—structured as $900 million in Tier 1 capital and $600 million in hybrid instruments, with the first phase concluding successfully by February 2022, raising over half the target from shareholders.[10] [11] This effort raised subscribed capital from 1,155 billion FCFA to 1,709 billion FCFA by December 2022, enabling expanded project financing and improved credit ratings, as affirmed by Fitch at 'BBB' with a stable outlook in April 2025 despite portfolio growth.[12] [13] Subsequent support included a $24 million equity investment from the African Development Bank in December 2024 to further the increase, alongside contributions from entities like the European Investment Bank.[14] Operational reforms have emphasized innovation in financing mechanisms and sustainability. BOAD launched its "Djoliba" strategic plan (2021–2025) to position itself as the leading bank for sustainable development in West Africa, prioritizing risk management, private sector engagement, and climate resilience.[4] In parallel, it created BOAD Titrisation, the region's first licensed securitization company approved by the Autorité des Marchés Financiers de l'UEMOA, facilitating multi-country securitizations for small and medium-sized enterprises, as evidenced by a pioneering IFC-BOAD-BII transaction in July 2025.[15] Recent enhancements, such as extending sovereign credit insurance to 2,976 billion FCFA in October 2025 with A- and AA- rated providers, aim to cover 15% of the loan portfolio and lower funding costs, supporting scaled-up lending in UEMOA states.[16] A new three-year strategic plan unveiled in October 2025 further refines priorities, including human capital development and regional integration.[17] These measures have driven approval of 15 projects totaling 391.923 billion FCFA in March 2025, reflecting reformed efficiency in resource allocation.[18]Governance and Organizational Structure
Member States and Capital Structure
The West African Development Bank (BOAD) comprises eight member states, all members of the West African Economic and Monetary Union (UEMOA): Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. These states hold Class A shares, forming the foundational ownership structure designed to promote regional development and economic integration.[1] BOAD's capital is structured across share classes: Class A shares are subscribed exclusively by the eight UEMOA member states; Class B shares by regional financial institutions, including the Central Bank of West African States (BCEAO); and Class C shares by non-regional international shareholders such as the African Development Bank (AfDB), European Investment Bank (EIB), and Arab Bank for Economic Development in Africa (BADEA). Regional shareholders, primarily the member states, maintain majority control, subscribing to approximately 75% of capital increases to ensure alignment with subregional priorities.[10] As of the completion of its latest capital increase under the Djoliba Strategic Plan (2021-2025), BOAD's subscribed capital totals 1,709.35 billion FCFA, up from 1,155 billion FCFA, enhancing its lending capacity for infrastructure and private sector projects. This expansion included contributions from existing regional shareholders and new non-regional investors, with specific stakes such as BADEA's 1.20% and AfDB's increased holding to 1%.[12][19][20]Key Institutions and Leadership
The governance of the West African Development Bank (BOAD) is structured around three primary institutions: the Board of Governors, the Board of Directors, and the executive management team led by the President.[21] The Board of Governors constitutes the highest decision-making authority, comprising representatives from the eight member states of the West African Economic and Monetary Union (UEMOA)—Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo—as well as partner institutions, responsible for approving major strategic decisions, capital increases, and amendments to the Bank's statutes.[21] The Board of Directors oversees operational policies, approves financing operations exceeding certain thresholds, and ensures alignment with development objectives; it is divided into Category A directors from UEMOA member states and the Central Bank of West African States (BCEAO), and Category B directors from non-regional partners including France, Germany (via KfW), Belgium, the European Investment Bank (EIB), the African Development Bank (AfDB), India (via EXIM Bank), China (via People's Bank), and Morocco.[21][22] The Board is chaired by the Bank's President and meets regularly to review projects and financial strategies.[22] Executive leadership is headed by President Serge Ekué, who assumed office on August 28, 2020, and serves a five-year renewable term, directing overall operations and representing BOAD externally.[21] Supporting the President are two Vice Presidents: Abdoulaye Daffé, overseeing financing and investments, and Braima Luis Soares Cassama, managing support and control functions including risk, audit, and administration.[21] As of 2025, the Board of Directors includes country-specific representatives such as Primael Gbeke and Huberte Eudoxie Bessan from Benin, Amidou Ouedraogo and Vieux Abdoul Rachid Soulama from Burkina Faso, and equivalents from other member states, alongside delegates from partner entities like Norbert Toe from BCEAO and Yves Charpentier from France.[22]Mandate and Strategic Objectives
Core Development Goals
The core development goals of the West African Development Bank (BOAD) are to promote the balanced development of its member states and to foster economic integration within West Africa, principles rooted in its Articles of Association signed on November 14, 1973, and operationalized since 1976. These objectives operate on a foundation of solidarity among the eight West African Economic and Monetary Union (WAEMU) member states—Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo—by directing financing toward priority projects that address structural imbalances and enhance regional cohesion.[23][7] Balanced development specifically targets the mobilization of domestic resources and technical capacities to overcome disadvantages imposed by geography, climate, or historical factors, enabling self-sustaining growth through targeted investments in underserved sectors. This includes long-term loans and equity participation for public and private initiatives that build resilience, create productive employment, and reduce disparities in economic output across member states, with an emphasis on fiscal sustainability to avoid dependency on external aid.[23][24] Economic integration seeks to unify national economies by financing cross-border infrastructure, harmonizing markets, and stimulating regional capital flows to attract international resources, thereby boosting trade volumes and intra-regional connectivity. As stipulated in Article 41 of the WAEMU Treaty, BOAD functions as an autonomous institution dedicated to these integration efforts, prioritizing actions that advance common market formation, competitiveness, and convergence criteria among members.[23][25]Evolution of Priorities
Upon its operational launch in 1976, the West African Development Bank's priorities centered on financing public and private sector projects in key areas such as infrastructure, agriculture, industry, and transport to promote balanced economic growth and regional integration among its West African Economic and Monetary Union (WAEMU) member states.[23] This initial focus aligned with the WAEMU Treaty's emphasis on supporting priority development actions, including resource mobilization from domestic and external sources to address structural deficits in the region's economies.[23] By the mid-2010s, BOAD's strategic orientation evolved to emphasize institutional strengthening and expanded financial capacity, as outlined in its 2015-2019 plan, which aimed to transform the bank into a more robust development institution capable of mobilizing larger-scale resources for member states' growth initiatives.[26] This period saw increased attention to private sector financing and capital market development, reflecting a recognition of the need for diversified funding amid persistent regional challenges like inadequate infrastructure and low industrialization.[26] The 2021-2025 Djoliba strategic plan marked a further shift toward sustainability and measurable impact, prioritizing climate resilience, job creation (targeting 244,000 jobs), and enhanced regional connectivity through investments in 12,700 km of roads, 380 MW of additional power capacity, and agricultural land development covering 12,170 hectares.[4] This plan achieved 107% of its sustainable development goals by mid-2025, underscoring a pivot from broad sectoral lending to targeted interventions addressing environmental vulnerabilities, youth unemployment, and economic fragmentation exacerbated by events like the COVID-19 pandemic.[17] [27] In recent years, BOAD has intensified focus on green finance and inclusive growth, evidenced by issuances of sustainable hybrid bonds totaling $500 million in 2025 and its accession to the Global Alliance against Hunger and Poverty in September 2025, which signals heightened emphasis on food security and poverty reduction alongside traditional infrastructure priorities.[28] [29] These adaptations reflect causal responses to global pressures like climate change and market demands for investment-grade instruments, while maintaining core commitments to WAEMU integration.[23]Financial Operations and Resources
Capitalization and Funding Mechanisms
The West African Development Bank (BOAD) derives its core capitalization from subscribed equity held primarily by its eight founding member states of the West African Economic and Monetary Union (UEMOA): Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.[10] These regional shareholders contribute the majority of shares, with non-regional investors holding minority stakes to bolster capital adequacy and credit ratings.[30] As of December 2023, BOAD's total subscribed capital stood at approximately $2.5 billion, inferred from the Arab Bank for Economic Development in Africa (BADEA)'s $30 million subscription equating to a 1.20% stake.[31] In September 2020, BOAD's Board of Directors approved a $1.5 billion (837 billion FCFA) capital increase under the Djoliba Strategic Plan (2021–2025), aimed at doubling equity and enabling over 50% growth in commitments to support regional development projects.[10] The first phase concluded on February 16, 2022, securing more than half the target through subscriptions divided into Series A (led by UEMOA states) and Series B (non-regional partners including Germany, the African Development Bank (AfDB), European Investment Bank (EIB), China, France, Belgium, and Morocco).[10] Subsequent contributions included the AfDB's $24 million equity investment in December 2024, the EIB's up to $28 million to raise its stake from 0.4%, and BADEA's aforementioned $30 million in December 2023.[14][30][31] These injections have strengthened BOAD's equity-to-assets ratio, reaching 41.7% following hybrid capital enhancements.[28] BOAD's funding mechanisms extend beyond equity to include substantial borrowing from capital markets, enabling it to on-lend for infrastructure and private sector projects. The bank issues bonds on both regional (WAEMU) and international markets, with cumulative issuances on the WAEMU market totaling XOF 991.053 billion (approximately $1.65 billion) across 27 transactions since 1993.[32] Notable recent activities include a landmark €1 billion, 15-year Eurobond issuance in October 2025, the longest maturity for an African issuer, allocated primarily to asset managers (74%) and hedge funds (14%).[5] Hybrid instruments, treated as equity-like for regulatory purposes, have been pivotal; a $500 million public hybrid bond in February 2025 exceeded the $600 million target, fulfilling 95% of the Djoliba Plan's capital objectives and funding green and social projects.[28][28] Additional funding sources encompass concessional resources from shareholders for policy-based lending, securitization of assets like loans and receivables into marketable securities, and guarantees from multilateral partners such as the Multilateral Investment Guarantee Agency (MIGA), which backed a €506 million ($535 million) loan in November 2024 for climate projects across member states.[13][33][34] These mechanisms maintain BOAD's investment-grade ratings (BBB from Fitch, Baa1 from Moody's) while prioritizing long-term, sustainable financing aligned with regional integration goals.[32]Lending and Investment Practices
The West African Development Bank (BOAD) primarily engages in long-term lending to support economic development in its eight member states of the West African Economic and Monetary Union (UEMOA), targeting both public sector entities and private enterprises, including small and medium-sized enterprises (SMEs).[35] Loans are extended for projects in key sectors such as infrastructure, rural development, agriculture, renewable energy, and green housing, with a growing emphasis on sustainable and climate-resilient initiatives.[9][36] In 2023, BOAD granted new loans contributing to an annual disbursement rate of 20.7%, reflecting expanded lending capacity amid regional needs.[37] BOAD complements direct lending with equity investments and guarantee mechanisms to mitigate risks and enhance project viability.[35] Guarantees involve commitments to repay principal or interest on demand in financial transactions, often supporting private sector borrowers, while equity stakes are deployed selectively to foster innovation and job creation.[38] Dedicated credit lines and capacity-building programs further assist SMEs in project development, with interest-rate subsidies applied to non-profit sector initiatives to ease borrowing conditions.[39][40] A notable innovation in BOAD's practices is securitization, initiated in 2011, which pools assets like receivables into marketable securities to unlock financing for financial institutions and expand MSME lending.[33] One such transaction mobilized FCFA 150 billion through the "FTC BOAD DOLI-P 6.10% 2023-2030" issuance, channeling funds to regional banks and promoting economic growth via capital markets.[33] Additionally, the "Shock Resilient Loans" program, launched in 2024 under the sovereign portfolio, integrates subsidized loans with parametric insurance across a USD 350 million facility for Benin, Côte d'Ivoire, Senegal, and Togo, enabling repayment deferrals during disasters like droughts or epidemics without altering core loan terms.[41] Risk management in lending emphasizes credit and counterparty assessments, with exposure limited by policies addressing interest rate mismatches and debtor defaults.[42] These practices align with BOAD's mandate for balanced regional integration, though actual terms vary by project feasibility and market conditions, prioritizing developmental impact over purely commercial returns.[9]Major Activities and Sectoral Focus
Infrastructure and Regional Integration Projects
The West African Development Bank (BOAD) allocates significant resources to infrastructure projects that enhance connectivity and economic integration across its eight member states: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.[4] These initiatives prioritize transport networks, energy interconnections, and telecommunications to reduce trade barriers, facilitate cross-border movement of goods and people, and support the West African Economic and Monetary Union's (UEMOA) integration goals under BOAD's Djoliba Strategic Plan (2021–2025).[4] By December 2016, BOAD had financed 14 energy projects totaling 229.7 billion FCFA, focusing on power generation and transmission to enable regional energy pooling and reduce dependency on national grids.[43] In transportation, BOAD has supported the development of approximately 13,000 kilometers of national and inter-state roads, including rehabilitation and new construction efforts that link key economic corridors and border points.[44] Between 2010 and 2017, the bank invested $2.3 billion in transportation infrastructure, representing 40% of its overall portfolio during that period, with emphasis on multi-country alignments to boost intra-regional trade volumes, which remain below 15% of total West African commerce despite UEMOA protocols.[45] Complementary efforts include 1,400 kilometers of regional power interconnection lines and 5,500 kilometers of fiber optic cables, deployed across member states from 2020 onward to synchronize electricity supply and digital access, addressing chronic deficits in cross-border transmission capacity estimated at over 2,000 MW regionally.[44] To accelerate these priorities, BOAD pursues strategic partnerships for co-financing. In 2023, it signed a memorandum of understanding with the African Development Bank (AfDB) to jointly prepare and fund public-private partnership (PPP) projects in regional transport, energy, water, and ICT infrastructure, targeting viable initiatives that mitigate preparation risks and attract private capital.[46] A notable recent commitment came in May 2025, when BOAD secured a €200 million loan from Japan's International Cooperation Agency (JICA) to bolster West Africa's growth corridor plan, financing roads, rail links, logistics hubs, and ancillary services to enhance multi-modal connectivity and reduce transport costs by up to 30% along priority axes.[47] These interventions align with empirical assessments showing that improved regional infrastructure correlates with 1–2% annual GDP uplifts per member state through expanded markets and supply chain efficiencies, though execution faces delays from land acquisition and fiscal constraints in low-income members.[4]Support for Agriculture, Energy, and Private Sector
The West African Development Bank (BOAD) provides financing to agriculture through medium- and long-term loans to governments and private operators, alongside short-term advances for seasonal campaigns, with the aim of enhancing food and nutritional sovereignty in the West African Economic and Monetary Union (WAEMU) via climate-resilient farming and agribusiness value chains.[48] In 2023, BOAD-supported agricultural initiatives irrigated 11,745 hectares and contributed to rice production of 91,750 tons, reflecting efforts to boost rural incomes and reduce import dependency.[37] Notable projects include the second phase of Togo's Agri-Food Processing Project, approved in 2024 with FCFA 30 billion from BOAD to promote value chains in rice, maize, soya, sesame, poultry, and cashew processing, targeting 800,000 beneficiaries including improved water and electricity access for 10,000 people each.[49] BOAD has also partnered in the ECOWAS-initiated Regional Project for Climate-Smart Agriculture to foster adaptive practices amid environmental challenges.[50] In the energy sector, BOAD seeks to ensure adequate supply for populations and industries by financing generation, transmission, and distribution infrastructure, including over 3,500 kilometers of interconnection lines and more than 1,350 MW of capacity as of March 2023, with cumulative financing reaching FCFA 1,189.55 billion by that date.[43] Approximately 39% of these projects incorporate renewables, aligning with the WAEMU's Initiative for Regional Energy Development targeting 82% renewable share in the power mix and universal access by 2030.[43] The Energy Development Fund, launched in 2009, allocated FCFA 229.7 billion to 14 projects by 2016 to address deficits and lower costs.[43] Recent efforts include a November 2024 MIGA guarantee of €506 million ($535 million) to back BOAD lending for renewable energy, requiring 50% climate allocation and 30% adaptation within five years across eight WAEMU states.[36] In October 2025, BOAD issued a €1 billion 15-year Eurobond, with proceeds earmarked for renewable energy among sustainable infrastructure.[51] BOAD supports the private sector via credit lines, refinancing agreements, leasing, guarantees for bond issues, and equity stakes to stimulate productive investment, economic growth, and job creation, with cumulative commitments of FCFA 2,046.3 billion (26.2% of total approvals) as of June 2023.[52] Mechanisms include technical assistance for strategy development and participation in funds like CAURIS Investissement (established 2006) and the GARI Fund (1995) to deepen financial markets.[52] In July 2025, BOAD collaborated with IFC and British International Investment on West Africa's first multi-country securitization to enhance small business lending.[15] A April 2025 call for private sector projects emphasized high-impact agriculture and energy initiatives for sustainable transition in WAEMU.[53] These efforts integrate with broader climate finance, such as the MIGA-backed loan supporting private renewable and agribusiness ventures.[36]Achievements and Measured Impacts
Quantitative Successes in Financing and Growth
The West African Development Bank (BOAD) has achieved substantial quantitative milestones in its financing operations, evidenced by escalating approval volumes, disbursement rates, and portfolio expansion since its inception in 1976. By the end of 2023, cumulative financing extended to West African Economic and Monetary Union (UEMOA) member states reached XOF 8,174 billion, underscoring the Bank's role in channeling resources toward infrastructure, agriculture, and private sector development.[37] Annual financing approvals have demonstrated robust growth, peaking at a record XOF 978.7 billion in 2023, with 87.8% allocated to medium- and long-term loans totaling XOF 858.9 billion. This was followed by XOF 942.9 billion in approvals for 2024, marking the second consecutive year surpassing the XOF 900 billion threshold, of which approximately 78% targeted priority areas including energy, food security, transport, and digital infrastructure. Disbursements supported this expansion, rising 15.8% to XOF 449 billion in 2023 from XOF 387.7 billion in 2022, achieving an annual rate of 20.7%.[37][54]| Year | Approvals (XOF billion) | Disbursements (XOF billion) |
|---|---|---|
| 2022 | N/A | 387.7 |
| 2023 | 978.7 | 449.0 |
| 2024 | 942.9 | 383.1 |