February 23, 2024

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West African Development Bank and Africa Finance Corporation form strategic partnership to drive economic development

DUBAI, United Arab Emirates, December 2, 2023/ — Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, and the West African Development Bank (BOAD), a regional financial institution mandated to drive economic unity and advancement in West Africa, yesterday announced a strategic Memorandum of Understanding (MoU), solidifying their joint commitment to promote infrastructure and economic progress across Western African states.

Signed on the sidelines of the ongoing 28th United Nations Climate Change Conference (COP28), the MoU marks a pivotal alliance between two leading multilateral development finance institutions on the continent, signalling the intent of AFC and BOAD to foster economic alignment and equitable growth in West Africa. The collaboration aims to enhance both institutions’ investment footprint and impact in key sectors including telecommunications, energy and natural resources, ultimately enhancing economic unity in West Africa.

AFC and BOAD already have a history of co-investment in critical infrastructure projects in the region, including a EU30 million investment in the Kekeli Efficient Power project, Togo’s first gas-fired combined cycle power plant, which generates enough power to meet 35% of the country’s energy needs.

BOAD plays a key role in promoting economic integration and development across West Africa, with contributions spanning multiple sectors including agriculture, education, healthcare, and transportation, significantly enhancing infrastructure and social services. Celebrating its Golden Jubilee, BOAD is a key development finance institution within the West African Economic and Monetary Union (WEAMU), actively contributing to poverty reduction and overall improvement in the region’s quality of life.

AFC’s ability and focus on mobilising domestic African and international capital to develop and de-risk transformational projects is reflected in US$12.7 billion of investments across 36 African nations, marrying impact-at-scale with exceptional risk-adjusted returns. This has propelled AFC’s community of sovereign member nations to span three-quarters of the African continent. Bolstered by an impressive A3 credit rating from Moody’s, AFC stands alongside its partners as the primary investor and developer in numerous transformational infrastructure projects. Its recent joint acquisition of Lekela makes AFC with its partners the biggest investor in renewable energy generation on the continent. The platform owns seven wind farms and six solar assets across South Africa, Egypt and Senegal, with a combined gross capacity of 1.27GW powering over 1 million homes and offsetting 2.7 million tons of CO2 per annum.

AFC President & CEO Samaila Zubairu said: “Strategic collaboration between key multilateral institutions strengthens and enhances the critical role we play in driving development on the continent because governments cannot do the work alone. We look forward to working with BOAD to unlock infrastructure investment opportunities that will accelerate industrialisation, spur local manufacturing, enhance economic prosperity and transform lives.” 

Serge Ekue, BOAD’s President and Chairman, said: “Access to energy at an affordable cost to all is crucial for better living conditions but also for reducing the cost of doing business and unlocking economic potential. This is a priority for BOAD and AFC. Therefore we are delighted to have signed today a Memorandum of Understanding, which will facilitate the sharing of technical knowledge, advice, skills and expertise, opening new avenues for cooperation in the energy sector while boosting investment within our region”.

As two leading African multilaterals, AFC and BOAD’s partnership will support both institutions in raising funds at competitive rates and to de-risk infrastructure projects through early-stage project development, project finance, and technical and financial advisory services, ensuring more projects get to bankability. The collaboration seeks to catalyse local and global investors to undertake projects in West Africa, unleashing a new era of economic prosperity in Western African countries.

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