The West African Development Bank (BOAD) and PROPARCO, a subsidiary of the AFD Group, have signed a €200 million financing agreement (equivalent to approximately CFAF 131 billion).
A news report on the deal by the Arican Press Organisation (APO) Group, circulated for the BOAD, indicated that structured by Galite as a cross-currency transaction between the euro (EUR) and the CFA franc (XOF), was a global first in both its nature and ambition.
According to the terms of the pact, this structure directly addresses current challenges related to reforming the global financial architecture by introducing an innovative and catalytic financial instrument. It enables:
The pact will ensure more efficient allocation of resources through expanded access to the XOF market, helping diversify financing options for local businesses; greater stability through support for the WAEMU region’s foreign exchange reserves, ensuring stronger macroeconomic resilience; and direct impact through the financing of transformative private-sector projects, a key driver of job creation in the region.
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Commenting on the financing agreement, Chief Executive Officer of PROPARCO, Françoise Lombard, said: “Together with BOAD, we are reaching a major milestone in our commitment to boosting financing for African economies, particularly within the WAEMU region. This initiative is fully aligned with the momentum to reform the development finance architecture by providing a tangible solution to increase the mobilization of local-currency resources in support of the private sector and local economies.
“I am delighted by this partnership, which embodies a truly win-win approach and reflects our shared determination to act with ambition and pragmatism to sustainably support the development of the private sector across WAEMU economies, particularly our clients in the region, to whom we will be able to offer more loans denominated in CFA francs”, Lombard added.
In his remarks on the deal, President of BOAD, Serge Ekué, said: “The partnership between BOAD and PROPARCO reflects the quality and depth of our strategic cooperation.
“Through this initiative, BOAD is reaffirming its role as a mobilizer of resources by attracting additional investment for the benefit of the region. Expanding the range of available financing tools is essential to sustainably support the transformation of WAEMU economies.
“This transaction marks an important milestone in our collective ability to channel greater financing toward projects delivering strong economic and social impact across Africa”, the banker stressed.
