By Bamidele Famoofo
WorldStage– The Board of Directors of the African Development Bank Group approved a US$100 million financing facility to support the activities of the ECOWAS Bank for Investment and Development (EBID).
The operation comprises two components. First, the Bank Group will make a US$30 million equity investment in EBID. With this investment the Bank Group becomes the first development finance institution to acquire a stake in the EBID and secure a Board seat. Additionally, this equity investment, contributes to a capital increase, and supports the expansion of the sub-regional bank. The Bank Group’s reputation, will bolster EBID’s abilities to mobilise resources from a wider range of international investors and financial partners.
The second component provides a long-term credit facility of US$70 million to finance new clean energy projects in West Africa. The EBID will deploy these resources to expand clean energy production to benefit underserved communities and businesses across the region.
“This operation will strengthen the EBID’s capacity to support private sector development and investment in renewable energy in West Africa. Through leverage, the credit line is expected to mobilise nearly 230 million dollars in financing for renewable energy generation, particularly solar and hydroelectric projects representing an additional capacity of 207 megawatts,” said Ahmed Rashad Attout, Director of the Financial Sector Development Department at the African Development Bank Group.
Andrews Amankwah, Director of the Treasury and Resource Mobilisation Department at the ECOWAS Bank for Investment and Development, said: “The African Development Bank Group’s acquisition of a stake in the EBID marks an important milestone in the institution’s development. Beyond the capital injection, this investment by a major AAA-rated shareholder strengthens the EBID’s credibility with international investors and supports efforts to mobilise long-term resources for the benefit of ECOWAS countries. It will also help to strengthen governance and accelerate the EBID’s strategy to finance sustainable development and the energy transition in the region.”
The project will deliver significant social economic and environmental benefits across West Africa. It will provide improved electricity access for more than 250,000 households, impacting nearly 1.4 million people and mitigating 355,500 tonnes of annual CO₂ emissions. Furthermore, the funded initiatives will drive local skills, development and employment with youth accounting for more than 70 per cent of all newly-created permanent jobs.
Aligned with the New African Financial Architecture for Development (NAFAD) this new operation aims to strengthen the ECOWAS Bank for Investment and Development’s capacity to mobilise long-term resources and increase its impact in terms of development financing in West Africa.
