The Board of Directors of the ECOWAS Bank for Investment and Development (EBID) has approved a total of $250 million for five member states of Nigeria, Burkina Faso, Ghana, Senegal and Sierra Leone to strengthen their energy, road and agricultural sectors.
According to a statement released by the bank on Thursday, the approvals are part of EBID’s intensified efforts to invest in key sectors to boost recovery from the COVID pandemic and mitigate the impact of the Russian-Ukrainian war on Member States of the Economic Community. West African States (ECOWAS).
The announcement, according to the statement, was made by the President and Chairman of the Board of Directors of EBID, Dr. George Agyekum Donkor during the just-concluded 79th session of the Bank’s Board of Directors.
Donkor, reportedly observed that the impact of the COVID pandemic and the ongoing Russian-Ukrainian war has left many economies in tatters. He said current market conditions have forced investors to seek premiums on investments in sub-Saharan Africa, thereby increasing the cost of capital.
He also said it had led to slowing economic growth, widespread balance of payments deficits, unfavorable terms of trade, depletion of central bank international reserves, budget deficits and over-indebtedness, emphasizing the need for EBID, as the financial arm of ECOWAS. , to deepen its financial intermediation in all the critical sectors of the Member States to help them overcome economic challenges.
The session was attended by the Vice-President of the ECOWAS Commission, His Excellency Damtien L. Tchintchibidja, who praised the considerable impact of EBID’s interventions in the sub-region and assured the Bank of the commitment of the new administration of the ECOWAS Commission to collaborate and support EBID in its multiple activities, particularly in the area of resource mobilization to transform ECOWAS Communities.
The ECOWAS Bank for Investment and Development (EBID) is a leading regional investment and development bank, owned by the 15 member states of ECOWAS, namely Benin, Burkina Faso, Cape Green, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
The bank, headquartered in Lomé, the Togolese capital, is committed to financing development projects and programs covering various initiatives in the sectors of basic infrastructure and equipment, rural development and the environment, industry and social services, through its private and public counters.
EBID operates through long, medium and short term loans, equity investments, lines of credit, refinancing, financial engineering operations and related services.