By Amaka Abayomi

The Board of Directors of the African Development Bank (AfDB), last week in Tunis,  approved a 64m euros Line of Credit to the West African Development Bank (WADB) and a 3.05m euros investment in equity capital.

The objective of the facility is to strengthen the financial capacity of WADB to assert its role as AfDB’s strategic partner in financing private sector activities in West Africa.

The AfDB and WADB have enjoyed a partnership that spans more than 14 years and includes equity participation, a technical assistance and a line of credit.

This new facility is being extended at a time of rapid growth in WADB’s lending and operational activities, resulting in the need for additional resources.

This is, in particular, with regards to a growing demand for WADB lending products from private sector actors.

The facility provides WADB with medium-to-long-term resources needed to fulfil its mandate to promote economic growth and sustainable develop-ment as well as foster regional integration in the West Africa sub-region.

The line of credit will enable WADB  to fund projects that will lead to the creation of, at least, 63,000 temporary and 4,000 permanent jobs, and generate 55.906m  euros net revenue for the governments of the area and additional 212.845m  euros income for households.

This project is well aligned with the Bank’s poverty reduction strategy which promotes regional economic integration; the AfDB’s assistance strategy for sub-regional develop-ment finance institutions; the Bank’s objective to establish strong partnerships with DFIs that have similar strategic priorities.