West African Development Bank (BOAD) and PROPARCO Sign Landmark €200 Million Financing Agreement to Strengthen Private Sector in WAEMU Region

On the sidelines of the Africa Forward summit, the West African Development Bank (BOAD) and PROPARCO, a subsidiary of the AFD Group, announced a significant financing agreement valued at €200 million, approximately CFAF 131 billion. This unprecedented agreement, structured as a cross-currency transaction between the euro (EUR) and the CFA franc (XOF), represents a pioneering initiative in both its structure and objectives.

Innovative Financing Structure

This financing arrangement aims to tackle the pressing challenges associated with reforming the global financial architecture. It introduces an innovative financial instrument designed to catalyze investment in the region. The agreement facilitates:

• Resource Allocation: Enhanced access to the XOF market, which diversifies financing options for local businesses.
• Economic Stability: Support for the foreign exchange reserves of the West African Economic and Monetary Union (WAEMU) region, contributing to macroeconomic resilience.
• Private Sector Development: Direct financing for transformative projects that are crucial for job creation within the region.

Commitment to African Economies

Françoise Lombard, Chief Executive Officer of PROPARCO, emphasized the importance of this partnership with BOAD. She noted that it marks a significant milestone in their shared commitment to enhancing financing for African economies, particularly within the WAEMU region. Lombard stated that the initiative aligns with ongoing efforts to reform the development finance architecture, providing a practical solution for mobilizing local-currency resources to support the private sector.

Lombard expressed her enthusiasm for the partnership, highlighting its potential to sustainably support the development of the private sector across WAEMU economies. She indicated that this collaboration would enable them to offer more loans denominated in CFA francs to their clients in the region.

Strategic Cooperation and Resource Mobilization

Serge Ekué, President of BOAD, commented on the strategic cooperation between BOAD and PROPARCO. He reaffirmed BOAD’s role as a resource mobilizer, emphasizing the importance of attracting additional investments for the benefit of the region. Ekué noted that expanding the range of available financing tools is essential for the sustainable transformation of WAEMU economies.

He described this transaction as a significant milestone in their collective ability to channel greater financing toward projects that deliver substantial economic and social impact across Africa.

Broader Implications for Development Finance

The agreement between BOAD and PROPARCO is expected to have far-reaching implications for development finance in the region. By introducing a cross-currency financing structure, the initiative aims to enhance the availability of local currency resources, thereby reducing reliance on foreign currency financing. This shift is crucial for fostering economic stability and resilience in the WAEMU region.

The financing will support various sectors, including sustainable infrastructure, agriculture, and industry, which are vital for job creation and economic growth. The initiative aligns with broader efforts to strengthen the local economic fabric and support entrepreneurs and small and medium-sized enterprises (SMEs).

About PROPARCO and BOAD

PROPARCO has been actively engaged in promoting sustainable and inclusive development in Africa for nearly 50 years. The organization has committed over €4.6 billion across the continent between 2022 and 2025, focusing on high-impact projects that create jobs and enhance economic resilience.

The West African Development Bank (BOAD) serves as the common development finance institution for member countries of the West African Monetary Union (WAMU). Its mission is to promote balanced development and foster economic integration within West Africa by financing priority development projects.

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Published on 2026-05-15 00:09:00 • By the Editorial Desk