West African Development Bank (BOAD)
The West African Development Bank (BOAD) is the common development finance institution of the member countries of the West African Monetary Union (WAMU). It was established by an Agreement signed on 14 November 1973, and became operational in 1976. Member countries include Benin, Burkina, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo.
By Treaty of the West African Economic and Monetary Union (WAEMU) signed on 10 January 1994 and entered into force on 1st August 1994, BOAD is a specialized and autonomous institution. It contributes in full independence to the attainment of the objectives of the WAEMU without prejudice to the objectives assigned to it under the WAMU Treaty.
BOAD is an international public institution whose purpose, as providedunder Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects.
Areas of Intervention
The Bank's area of intervention are as follows:
- Rural Development and food security- Industry and agro-industry- Basic and modern infrastructure (roads, telecommunications, airports, ports, energy)- Transport, hotel activity and other services
Forms of Intervention
The Bank intervenes in any of the following forms:
- Medium and long-term loans- Equity investment in the share capital of companies or national financial institutions (NFls)- Financing of short-term operations- Financing of project feasibility or engineering studies- Assistance to small and medium-sized enterprises (SMEs) through credit or refinancing facilities to national financial institutions (NFls)- Easing of credit conditions through interest allowance for projects falling within the non-commercial sector- Assistance in project preparation, promotion and implementation- Guarantees of bond loans- Financing arrangements for projects- Financial advisory services
The Bank has two financing windows: a non-commercial window, as known as Development and Cohesion fund (FDC) and a commercial window. The first window finances from concessional resources (softened interest rate and tenor conditions) public development projects (production support infrastructure, rural development and food security, social projects, etc.) for the benefit of the populations in the member countries. The second window finances from market resources commercial investment projects promoted by member countries and public and private businesses.
It should be pointed out that there is a more recent third window, namely the Energy Development Fund (FDE). Managed by BOAD, such window put in place under the community programme called “Regional initiative for sustainable energy” is meant for financing energy projects.See more