OPEC Fund €50 million loan supports SMEs and green energy in West Africa

November 29, 2023: The OPEC Fund for International Development (the OPEC Fund) has signed a €50 million loan with the West African Development Bank (BOAD) to support small and medium-sized enterprises (SMEs) through other financial institutions and for green energy projects.
Sub-loans under the agreement will be available in the member countries of the West African Monetary Union (WAMU): Benin, Burkina Faso, Côte d’Ivoire, Guinea- Bissau, Mali, Niger, Senegal and Togo.

OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said:

“We are pleased to further expand our cooperation with BOAD in line with two strategic priorities of our institutions: providing access to finance for local businesses and promoting green energy solutions to support cheaper, cleaner and reliable sources of electricity generation. We are committed to contributing to growth and sustainable development in the WAMU member countries.”

Mr. Serge Ekue, President of BOAD and Chairman of its Board of Directors said:

“I am pleased to sign this new loan agreement with the OPEC Fund, one of our key partners which stands by our side for more than four decades, helping us to carry on with our mission as provided under Article 2 of our Articles of Association, which is to promote the balanced development of our member countries and foster economic integration within West Africa, by financing priority development projects for the overall well-being of our populations.”

The OPEC Fund and BOAD have been collaborating since 1983 and to date have jointly financed 25 public, private and trade finance projects. The OPEC Fund has also provided three direct loans to BOAD in support of private sector and trade finance projects in the WAMU. The new financing is aligned with the OPEC Fund’s Climate Action Plan, which commits the institution to dedicate 40 percent of all new financing to climate-related investments by 2030. 

About the OPEC Fund 

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.

About BOAD

The West African Development Bank (BOAD) is the common development finance institution of the member countries of the WAMU. It is an international public institution whose purpose, as provided under Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects. It is accredited to the three climate finance facilities (GEF, AF, GCF). Since 2009, BOAD sits as an observer at the UNFCCC and actively participates in discussions on devising an international climate finance system. Since January 2013, it has been home to the first Regional Collaboration Centre (RCC) on Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects. BOAD co chair- with BANCOLDEX of Colombia, the International Development Finance Club (IDFC) bringing together 26 national, regional and bilateral development banks, representing the largest provider of public development and climate finance globally.