The West African Development Bank (Banque Ouest Africaine de Développement BOAD) and the International Finance Corporation (IFC) have signed two reciprocal financing facilities totaling up to €600 million to boost long-term financing, private sector growth and job creation across the West African Economic and Monetary Union (WAEMU).

Under the agreement, IFC will provide BOAD with long-term euro funding, while BOAD will extend a flexible West African CFA franc (XOF) facility to IFC. The deal was signed on the sidelines of the Africa CEO Forum in Kigali.

The facilities will enable BOAD to expand lending in key sectors including energy, agribusiness, transport, urban development and micro, small and medium enterprises (MSMEs), in line with its 2026-2030 “Djoliba…La suite” strategic plan. In return, the XOF facility will allow IFC to offer more cost-efficient local currency financing for high-impact projects in the region.

“This landmark transaction with BOAD represents IFC’s first-ever reciprocal facility between development finance institutions,” said Makhtar Diop, IFC Managing Director. “It will support the expansion of BOAD’s private-sector lending across WAEMU... and underscores the strength of our partnership.”

Serge Ekué, President of BOAD, said access to long-term local currency financing is a core priority of the bank’s new strategic plan. “Our collaboration with IFC enhances our capacity to serve the private sector across all eight member states,” he said.

Bank lending in the WAEMU region is mostly short-term, restricting financing for infrastructure and other transformative investments. Since most private borrowers earn revenues in XOF, local-currency loans help reduce foreign exchange risk. The reciprocal structure is expected to deepen the XOF market, strengthen diversified funding options and support macroeconomic resilience by helping preserve foreign reserves.

The partnership builds on an existing track record of collaboration between IFC and BOAD in housing, MSME finance, digital services and infrastructure. The transaction was supported by Galite, BOAD’s structuring advisor.