BidC interventions in favor of countries reached a cumulative amount of 3.69 billion US dollars, or approximately 2,287 billion CFA francs invested for 294 projects in various sectors at the end of 2022.
What a MIDA
As of December 31, 2022, the cumulative amount of interventions by the ECOWAS Investment and Development Bank (BIDC) in favor of the countries stands at 2.75 billion units of account (UA), or 3.69 billion US dollars or 2,287 billion CFA francs for 294 projects in various sectors, according to the Bidc report in brief in 2023 subtitled “Transforming ECOWAS communities” (Drps 2023). Indeed, after nineteen years of activities (2004 – 2022), the Bank has almost multiplied its cumulative net commitments by 17.2, increasing from 121 million UA in January 2004 to 2,089 million UA at the end of 2022 for 172 active projects, the document indicates.
To date, the authorized capital of the ECOWAS Investment and Development Bank is estimated at 1 billion units of account (Uc), or 1.5 billion US dollars, 70% held by the 15 member states. of the Community and the remaining 30%, or approximately 300 million UA (450 million US dollars) are open to subscription for non-regionals. During 2022, the Bank’s Board of Governors approved a general increase in this capital which should increase from UA 1 billion to UA 2.5 billion as of January 1, 2023.
As part of the five-year Strategic Plan (2021-2025), the Bank intends to mobilize new resources amounting to US$1.48 billion to support the development objectives of the sub-region. It plans to inject US$1.76 billion into the regional economy over five years.
The Bank’s interventions are primarily oriented towards the financing of infrastructure, all sectors combined, in particular electrical interconnection works, the construction of inter-State roads, airport development, the development or acquisition of port equipment, the opening up rural areas and developing digital coverage. They absorb approximately 49.9% of the amount of the Bank’s cumulative net commitments at the end of December 2022, underlines the report.
A driver of wealth creation, economic growth and industrialization for the well-being of the region’s populations, the Bidc aims to be the leading regional development and investment bank in West Africa. It is the major partner for regional integration programs and the implementation of public-private partnerships in the member states of the Economic Community of West African States (ECOWAS) and is also distinguished in the development of financing by type of contractual guarantees in international trade.
Among other things, the Bidc is the initiator of the African Biofuels and Renewable Energies Fund (Faber), which became the African Biofuels and Renewable Energies Company (Saber), partner and manager of the Cultural Industries Guarantee Fund (Fgic) and shareholder founder of Asky Airlines and Ecobank Transnational Inc. (Eti).
In the public sector, the Bidc contributed to the interconnection to the Mali-Côte d’Ivoire electricity network, to the construction of the Samendeni dam and its hydroelectric power station in Burkina Faso, to the construction of the 120 MW thermal power station in Maria-Gléta and the electrification by photovoltaic solar systems of 750 community infrastructures in Benin. In terms of transport infrastructure, the Bank also supported the rehabilitation of the Akatsi-Aflao road in Ghana, the construction project of the Dakar – Tivaouane – Saint Louis Section Tivaouane – Mekhe highway in Senegal.
It has invested in the renovation and equipment of health institutions in Togo, the project to build a university of science and technology in the town of Koidu in Sierra Leone. Added to this is the strengthening of the drinking water supply system in the town of Tafiré and the surrounding localities of Badikaha and N’golodougou (Ivory Coast), the construction of 27 new drinking water supply systems in the impact zone of the integrated development program of the Samendeni valley.
Supporting the private sector, the Bidc supported the creation of a cement plant in Kagbelen by the company Diamond Cement Guinée SA (Guinea), the establishment and operation of a solute production plant in Aveta by Do Pharma (Togo), the construction of a 220 MW thermal power plant and a dual-fuel conversion component as part of the reserve plan for mines in Kpone and Tema by the Volta River Authority in Ghana. It should also be noted the turnkey construction of the 60 MW Kounoune 2 diesel power plant by Senelec in Senegal, the acquisition and operation of the third global telecommunications license by the company Alpha Télécommunication SA (Atel Mali SA) (Mali ), the extension and densification of the fixed and mobile telecommunications networks of Sonatel, (Senegal), the construction and operation of the Henry Konan Bédié toll bridge in Ivory Coast.
The Bidc also has to its credit the construction and operation of a 5-star hotel complex under the Radisson Blu label, (Ivory Coast), Kempinski Hotel (Ghana), the granting of a credit line in favor of the Banque de l’Habitat du Senegal for the refinancing of real estate loans, the Banque Malienne de Solidarité for the refinancing of medium-term loans and the Oragroup Sa group for the financing of small and medium-sized enterprises and industries (SME/SMI ) in Togo. It set up a facility in the form of a revolving facility in favor of the company Soyatt Sa for the import and marketing of petroleum products to marketers in Mali and facilitated a syndicated loan of US$750 million in favor of Bank of Industry Limited and the partial financing of the proposed purchase of bonds issued by Bank of Industry (Boi) in Nigeria.
Source : BIDC 2023
QA September 29, 2023
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