A guarantee of €506 million from MIGA for the BOAD, for the financial climate in Africa in the East

(Ecofin Agency) – In view of the financing deficit and the need for climate action, the BOAD has committed to donating 25% of its financing to projects that enable possible carbon emissions and resilience to climate changes.

The Agence multilatérale de Garantie des investissements (MIGA) has granted Société Générale France and HSBC Bank Plc du Royaume-Uni a $535 million guarantee for their premiums to Banque ouest-africaine de développement (BOAD). In a notice published on November 25, this guarantee covers the risk of non-compliance with a financial obligation of a regional development bank for a maximum period of 15 years.

MIGA’s Prêt Guarantee includes BOAD’s Prêt Operations for long-lasting and climate-friendly projects for its members. The product benefits from other renewable energies, green living space and agriculture.

The exact message is that the BOAD provides a 50% guarantee for financing eligible climate projects. 30% will not be granted for climate adaptation financing until five years after the guarantee period.

« This project reflects our commitment to support the financing of the project with an eye on climate change in relation to low revenues and the response to the main development gaps. We believe that we have no guarantee that other investments will be catalyzed in the transition to a green economy and that we will create new green companies », explained Hiroshi Matano, Vice President of MIGA.

Serge Ekue, President of BOAD, told us that “ This guaranteed product represents a special new initiative. It is important that we finance projects that have a positive environmental and social impact and that we are committed to sustainable development and social responsibility ».

Since the impact of climate change lasts more than a year, climate financing is definitely higher. I have been informed that banks are unable to assess the risks associated with new technologies and that commercial models are no longer able to maintain their trust. In this context, the guarantees may play an essential role in unlocking private sector funds, thereby mitigating the risks of financiers such as climate initiatives.

On rappelling, President Ekue assured that he“On the occasion of the high financing deficit and the urgent need to implement a climate action of higher strength with an impact on durable goods and systems, I have a commitment to finance 25% of the Banque’s financing for projects with low emissions of carbon and climate resilience Changes ».

Abdullah Diop