This article is sponsored by BIDC
Can you provide insight into recent trends regarding non-local participation in EBID capital?
West Africa has a population of 402 million people, making it a very large market with huge opportunities. Investing in EBID’s capital will enable strong partnerships in the ECOWAS region as well as cooperation with the 15 member countries.
Since EBID’s Board of Directors approved the entry of non-regional member countries into the banking capital, several meetings with key partners have been held and significant progress has been made. We continue on this path and believe that our efforts will soon bear fruit. The main objectives of this movement are:
Increased capital base: Members outside the region can provide additional capital, allowing financial institutions to expand their lending capacity and operations.
Broader perspective: Involving members from outside the region provides a more global perspective and avoids an overly narrow local focus.
Increased credibility: Having members from outside the region, especially from developed countries, can increase the institution’s credibility in international financial markets.
Knowledge sharing: Non-regional members can facilitate knowledge sharing and best practices from other regional and global institutions.
Diversification of funding sources: Involving members from outside the region can help diversify an institution’s funding sources and improve its financial stability.
Improving governance: Non-local members can contribute to improving governance practices and transparency.
Improving credit ratings: Involving investment-grade, non-regional members improves the shareholder support variable in credit rating agency methodology. This acts as a lever to improve the credit rating of financial institutions.
Can you tell us more about the newly approved projects in the area that were discussed at the recent board meeting?
EBID’s 88th Board of Directors approved a total of 117.4 billion West African CFA Francs (XOF) and $62.7 million for four public sector projects in the areas of commerce, infrastructure and rural development.
Two public sector projects were approved in Côte d’Ivoire, with a total value of XOF 117.4 billion. The first, worth XOF 60.9 billion, will be earmarked for the construction of 22 reinforced concrete bridges to strengthen local road connectivity in 10 districts across eight of the country’s most underserved regions. The second will support the construction of an ultra-modern livestock abattoir facility and a veterinary public health laboratory within the framework of the national policy on livestock, fisheries and aquaculture development aimed at improving food security in Ivory Coast. 56.5 billion XOF to be provided. Ivory Coast is expanding its livestock sector to foster economic growth.
A third project was approved in Ivory Coast. This is a €20 million loan facility that will enable Mansa Bank to expand its operations and support small and medium-sized enterprises and industries (SMEs and SMIs) in its role as the backbone of the economy.
The Board also approved $62.7 million for two water infrastructure projects in the Republic of Guinea. The $28.4 million will be spent on a drinking water supply system for 205,204 people in the towns of Beira, Fria and Cubia by 2035. Second, $34.3 million will drill 150 boreholes equipped with hand pumps to supply 100 drinking water distribution points in Upper Guinea and Forest Guinea. .
EBID is committing approximately $4.2 billion to its efforts in West Africa. Can you provide examples of how these investments have improved the lives of local communities?
Examples of how EBID investments have measurably improved the lives of local communities include:
Infrastructure development: EBID focuses on financing infrastructure projects, particularly in the transport, energy and communications sectors. These investments will help improve connectivity, facilitate trade and improve the overall quality of life for West Africans.
Agriculture and Food Security: The Bank has provided financing for agricultural projects, including irrigation systems, rural water supplies, and support for farmers. This will contribute to improving regional food security and rural development.
Supporting the social sector: EBID has invested in education, health and vocational training projects. These investments directly impact human capital development and improve access to essential services for local communities.
Private sector development: EBID supports small and medium-sized enterprises and small and medium-sized enterprises and promotes industrialization through the private sector window. This will contribute to job creation and economic diversification in member countries.
Financial intermediation: EBID has facilitated financial intermediation in the sub-region by providing financial institutions with facilities for on-lending to businesses within the sub-region.
Regional integration: EBID investments contribute to the broader goal of regional integration within ECOWAS by financing cross-border infrastructure projects and facilitating intra-regional trade.
The long-term goals of these investments are consistent with EBID’s vision and mission.
Economic Growth and Industrialization: EBID aims to foster an economically strong and industrialized West Africa.
Poverty Alleviation: The Bank aims to be an effective vehicle for poverty alleviation, wealth creation and employment promotion in the region.
Regional integration: EBID’s investments aim to promote a more integrated West African economy, both internally and within the global economic system.
Sustainable Development: The Bank focuses on financing projects that contribute to the sustainable development of its member countries.
Building resilience: As evidenced in the West Africa Development Outlook Report 2024, EBID is committed to building resilience to repeated shocks in the region.
Private sector promotion: EBID aims to become a strong financial institution for the promotion and financing of the private sector in the region.
Could you please provide an update on the progress made to date on EBID’s 2021-2025 strategy?
By the June 2023 interim period, two-thirds of the strategic plan objectives were fully implemented. The Bank’s total balance sheet and loan approvals exceeded targets and achieved significant results in resource mobilization. The cumulative number of projects approved reached 1,008.65 million aid units (UA), achieving 82.35% of the target.
The Bank’s total balance sheet amounted to UA 1,252.58 million, exceeding the targets for 2023 and 2025. Loans and advances also exceeded targets, with capital mobilization reaching 132.32% of the medium-term target.
The total financial requirement is estimated at UA 1.02892 billion, with 66.21% of the 2025 target mobilized by the medium term. The bank increased its capital from UA 1 billion to UA 2.5 billion.
At the midpoint, the Bank had financed 45 loan projects totaling UA 1,029,390,000, achieving 195.91% of the target in the first three years. This strategy is aligned with 11 of the 17 Sustainable Development Goals (SDGs).
At the end of 2023, the bank’s loan balance was 115.6% of its five-year target and its balance sheet was 134.9% of its target. Resource mobilization was 81.4% and expenditure was 90.2% of the target during the strategic planning period.
What are your main goals for the next few years?
The main objectives of EBID, especially in the context of regional development and integration, can be outlined as follows:
Infrastructure Development: EBID will continue to prioritize investment in critical infrastructure projects across the region. This includes transport networks, energy systems and communications infrastructure that are essential for regional connectivity and economic growth.
Sustainable development: The Bank aims to align its investments with the United Nations Sustainable Development Goals (SDGs), in particular SDG 2 (Zero Hunger), SDG 6 (Clean Water and Sanitation) and SDG 9. (industry, innovation and infrastructure). .
Private sector development: EBID will continue to support small and medium-sized enterprises through credit facilities and other financial products.
Regional Integration: As ECOWAS’ leading financial institution, EBID plays a key role in promoting regional integration through cross-border projects and initiatives that foster intra-regional trade and cooperation.
Innovative financing: To meet the region’s growing financing needs, EBID is likely to explore and introduce innovative financing mechanisms such as blended finance, green bonds, and public-private partnerships.
