BOAD Secures $535 Million Guarantee for Green Initiatives in West Africa

Investments

Friday, 29 November 2024 08:59

BOAD Secures $535 Million Guarantee for Green Initiatives in West Africa

(Togo First) - The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, announced on November 25 a €506 million ($535 million) guarantee to support sustainable development in West Africa through the West African Development Bank (BOAD). This funding will back loans from Société Générale (France) and HSBC (UK) to BOAD for projects focused on energy transition and climate adaptation in eight countries within the West African Economic and Monetary Union (WAEMU), including Togo.

Sustainable climate projects

The MIGA's guarantee allows BOAD to allocate 50% of the loan to climate finance, with 30% specifically for adaptation initiatives over the next five years. These projects will cover resilient infrastructure, renewable energy, green housing, and agriculture adapted to climate risks.

Strengthening the resilience of BOAD member countries

As the region's financing institution, the BOAD is a key advocate of economic integration and sustainability in West Africa. "This guarantee product represents a particularly innovative initiative. It will actively support the financing of projects with a strong environmental and social impact, demonstrating our commitment to sustainable development and social responsibility," said BOAD President, Serge Ekue.

On MIGA's side, Hiroshi Matano, Executive Vice President of MIGA stated that "this project reflects our commitment to supporting climate change financing in low-income countries and addressing key development challenges. We are convinced that our guarantee will catalyze further investments in the transition to a green economy and create new green jobs.”

This new facility should enable the Lomé-based development bank to allocate more resources to green projects amid a financing gap and growing climate challenges in public discussions.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.