Africa50: BADEA & Togo sign 30bn CFA facility for boad capital increase

The Arab Bank for Economic Development in Africa has made a significant move by signing a 30 billion CFA Franc agreement with Togo to support the capital increase of the West African Development Bank. Sidi Tah, the Director General of BADEA, emphasized the bank's commitment to co-financing infrastructure, agriculture, and projects related to micro, small, and medium enterprises in West Africa. The partnership between BADEA and Togo aims to bolster the region's development and strengthen key sectors that are vital for economic growth. The financing agreement between BADEA and the government of Togo highlights the strategic collaboration geared towards supporting the capital increase of the West African Development Bank (BOAD). This initiative forms part of a comprehensive program aimed at enhancing the financial capacity of BOAD, with BADEA contributing over half a billion US dollars to fortify the aid provided to the West African Development Bank. The significance of this investment lies in the multiplier effect it generates, where one US dollar in BOAD's capital can lead to four US dollars in financing for beneficiary countries. Sidi Tah underscored BADEA's dedication to co-financing initiatives that promote economic and social progress, particularly focusing on infrastructure development in the West African region. Additionally, BADEA intends to leverage resources from sister institutions in the Arab region to amplify support for infrastructural projects in sub-Saharan Africa, with a specific emphasis on West Africa. When discussing the targeted development priorities in West Africa, Sidi Taoude highlighted three key areas that BADEA is concentrating on. Firstly, infrastructure development stands out as a crucial sector, given the substantial gaps in infrastructure within West Africa. BADEA recognizes the imperative need to channel resources towards closing these gaps and facilitating economic growth in the region, necessitating collaboration with sister institutions and investors from the Arab region. Secondly, BADEA is keen on supporting the agricultural value chain in West Africa. By focusing on processing agricultural products, the aim is to create more employment opportunities for youth and women while enhancing the overall value generated for the economy. This strategic approach seeks to transition from exporting raw materials to adding value through processing. Lastly, BADEA places a significant emphasis on micro, small, and medium enterprises (MSMEs), which form a substantial portion of the economic makeup of sub-Saharan Africa and West Africa in particular. Recognizing that a significant percentage of these enterprises lack access to finance, BADEA aims to provide support not only in terms of financial assistance but also by facilitating...