(Ecofin Agency) - The loanis the very first agreement between the Canadian financial institution and the West African Development Bank. It will in crease financing for agri-food businesses and the energy sector in West Africa.
Findev Canada, Canada's development financial institution, announced last December 19 the disbursement of €20 million ($21.8 million) to support development projects in West Africa. The money will be channeled through the West African Development Bank (BOAD), with which the lendersigned a deal.
Per their agreement, BOAD will channel the credit in the form of refinancing lines to commercial banks in the region. The beneficiaries, in turn, will finance private SME slocated in the least developed countries of the Union.
The loans will be prioritized for businesses led by women and those involved in the agri-food and renewable energy sectors. Out of the eight countries where BOAD operates, seven are considered less developed. They"are particularly vulnerable to climate change risks, which can have devastating effects on agriculture, livelihoods, and local economy,"explained Paulo Martelli, Vice President and Director of Investments at Findev Canada. According to him, the loanwill not only support BOAD'screditactivities but also in crease its financing for agri-food businesses.
This agreement is the first between Findev Canada and BOAD. It is part of a larger credit facility of €150 million ($164.1 million) unlocked by the Canadian institution, the African Development Bank (AfDB), and Cassa Depositi e Prestiti.