NAIROBI, May 11 – The West African Development Bank and PROPARCO announced on Monday the signing of a €200 million financing agreement on the sidelines of the Africa Forward Summit, marking what the institutions described as a first-of-its-kind cross-currency financing structure between the euro and the CFA franc.
The transaction, equivalent to approximately CFA131 billion, was structured by Galite and is aimed at strengthening access to local-currency financing across the West African Economic and Monetary Union region.
The agreement is designed to expand financing capacity for businesses operating within the West African Economic and Monetary Union while supporting regional foreign exchange reserves and broader macroeconomic stability.
The initiative also seeks to channel more funding toward private-sector projects expected to drive industrial growth, investment and job creation across the region.
Françoise Lombard, Chief Executive Officer of PROPARCO said the partnership represented a significant step toward improving financing access for African economies and aligned with broader efforts to reform global development finance structures.
“Together with BOAD, we are reaching a major milestone in our commitment to boosting financing for African economies, particularly within the WAEMU region.” Françoise Lombard, Chief Executive Officer of PROPARCO said.
According to Lombard, the mechanism will help mobilize more local-currency resources and expand lending denominated in CFA francs for businesses and institutions operating within WAEMU economies.
“This initiative is fully aligned with the momentum to reform the development finance architecture by providing a tangible solution to increase the mobilization of local-currency resources in support of the private sector and local economies.” She said.
Serge Ekué, President of BOAD said the agreement reflected the depth of cooperation between the two institutions and reinforced BOAD’s role in mobilizing capital for regional economic transformation.
“The partnership between BOAD and PROPARCO reflects the quality and depth of our strategic cooperation.” Serge Ekué, President of BOAD Said
He added that expanding financing instruments remains critical to supporting long-term development projects with strong economic and social impact across Africa.
The deal comes as African development finance institutions increasingly seek innovative funding structures to reduce foreign exchange risks, strengthen local capital markets and improve private-sector access to long-term financing.
