The Board of Directors of the African Development Bank (AfDB) has approved a line of credit of €70 million and an equity investment of $24 million for West African Development Bank.
The line of credit will support businesses in the West African Economic and Monetary Union, particularly in job-creating sectors such as agribusiness, renewable energy, health and information and telecommunication, which were drastically affected by the COVID-19 pandemic.
The €70 million forms part of a €150 million facility, which will be co-financed along with other development finance institutions.
The $24 million equity investment is part of a capital increase transaction, which will allow the AfDB to increase its shareholding from 0.55 per cent to one per cent, and therefore retain its seat on the Board of Directors of the regional financial institution.
In addition, the Abidjan-based bank will assist the West African lender, through funding from the Women Entrepreneurs Finance Initiative to set up a technical assistance program to mainstream gender aspects in its project review process and to promote women’s entrepreneurship.
The project is projected to help to create or consolidate at least 5,900 jobs, including 2,000 to women.
The facility is strongly aligned with three of the Bank High 5 strategic priorities, namely Feed Africa, Industrialize Africa and Improve the quality of life of Africans.
AfDB Group as Africa’s premier development finance institution comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).
On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.
