Founded in 1973, the West African Development Bank (Banque Ouest Africaine de Développement / BOAD) is based in Lomé, Togo. It is supported by the eight member states of the West African confederation the Union Economique et Monétaire Ouest Africaine (UEMOA), namely Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissao, Mali, Senegal, Niger and Togo. However, the bank operates independently of the confederation. It provides its member states with low-interest funds to promote the development of the region and the integration of West African states. In addition to its shareholders , BOAD’s members also include several development banks, including KfW.
West African countries, as well, face common challenges, which must also be tackled together. These include widespread poverty, stark social inequalities and the effects of climate change. Economic challenges include the lack of jobs, a less developed financial system and inadequate infrastructure. BOAD aims to foster the balanced development of UEMOA member states and contribute to their economic integration, in particular by financing the following strategic sectors:
On behalf of the German Federal Government, KfW is supporting BOAD in the following areas:
BOAD is also increasingly establishing itself as a partner in the implementation of innovative approaches, for example in the "Shock Resilient Loans" project or the Digitalisation Fund. Shock Resilient Loans (SRL) are loans from BOAD to UEMOA member countries that provide protection against natural disasters. They provide a combination of a traditional loan and insurance. If a natural disaster occurs, for example as a result of climate change, a portion of the debt is released.
The Digitalisation Fund promoted by KfW facilitates the digital transformation of UEMOA countries. It finances the provision of new and secure means of support, including ICT applications, infrastructure and equipment. It also aims to improve data and network security.
KfW also supports BOAD projects that provide loans to micro, small and medium-sized enterprises through participating commercial banks and microfinance banks in the member countries. This provides economic growth, employment and income. KfW is also helping BOAD to provide socially supported housing for poorer people.
KfW is supporting BOAD in its task of becoming a key player in West Africa’s sustainable development.