The signing took place on May 28 during the AfDB Group Annual Meetings in Brazzaville.
The letter of intent opens the way for the AfDB Group to support the BDEAC in sustainably strengthening the financial base, solvency and long-term resource mobilisation capacity of the regional institution. The move is also expected to strengthen the effectiveness of the BDEAC in supporting regional economies.
The AfDB is also expected to explore the possibility of establishing a line of credit for the BDEAC to finance public and private projects with high development impact.
Founded in 1975, the BDEAC is the development finance institution of the Central African Economic and Monetary Community and is headquartered in Brazzaville. Members of the institution are Cameroon, the Central African Republic, the Republic of the Congo, Gabon, Equatorial Guinea and Chad.
The agreement is aligned with the AfDB’s New African Financial Architecture for Development, which seeks to mobilise Africa’s domestic resources, estimated at about $4 trillion, reduce risk perceptions, deepen capital markets and attract long-term investment. The framework also aims to reduce fragmentation within Africa’s financial ecosystem in pursuit of greater scale.
The letter of intent also creates scope for the AfDB to provide technical assistance and share expertise with the BDEAC in project appraisal, project monitoring, risk management, environmental, social and governance practices, public-private partnership structuring, climate finance, governance, compliance, internal control and treasury functions.
Under the Four Cardinal Points, the strategic vision of Ould Tah for Africa’s transformation, the AfDB intends to deepen partnerships among African institutions, between public and private capital, between domestic and international investors, and between Africa and global partners.
The Bank also plans to position the AfDB as both a financing institution and a catalytic platform able to mitigate risks, mobilise more capital, connect African and international investors, and turn scattered opportunities into bankable investments.
–AfDB/ChannelAfrica–
