(Togo First) - The forum on clean energy organized by BOAD on the sidelines of its 45^th anniversary recently ended. Here, Christian Adovelande, the institution’s head, reviews its actions so far and projections.

Togo First : The BOAD is 45-years old. What is your review of its actions so far?

Christian Adovelande : Over the past 45 years, we have financed 1030 projects for CFA5,300 billion and raised more than 3,000 billion. Actually, almost CFA1,500 billion were mobilized during the past five years alone.

In terms of mobilization of resources, BOAD does very well. We have a strong cooperation with most institutions operating in the climate sector, especially the renewables industry. I recently talked about our accreditation with the green fund, the Global Environment Facility (GEF), and the Adaptation Fund. We are working with the European Union and the World Bank which are both really engaged in the sector. We have already started mobilizing funds as mentioned throughout this forum. It’s our duty and role to attract funds to our integration zone, and we will fulfill it. We have already put in place all mechanisms needed to achieve this role and we believe we will successfully carry out all projects.

TF : Following this anniversary, will BOAD continue actions in the same direction or will it set new goals ?

CA : Truth is, there will always be challenges as you very well know and while improving upon our current actions, we plan to explore new horizons. Recently, I spoke a lot about climate funding. Just seven years ago, this became one of our priorities and we had to establish many reforms in this framework. However, we remain strategically positioned on infrastructure funding, both in the private and public sectors. 

BOAD is also much engaged in the issue of food security. We will keep supporting private sector. So far, 74% of our financing is injected in the public sector and 26% is in the private sector. We thus have to increase our support to the private sector since our nations are gradually focusing on this sector, through the transformation of raw commodities.

Hence, while reinforcing actions undertaken during the past 45 years, we will tackle new challenges that are rising. These include rural electrification solar power and everything related to the environment. 

TF : The recent forum focuses on solar power, a sector where banks plan to invest in WAEMU States. What are the forecasts made in this regard?

CA : Before talking of forecasts, we must first talk about what has already been done. In the clean power sector, we have launched 18 projects at a total cost of CFA185 billion. This is far below what is needed.

Now, speaking of projections, our actions must respond to existing needs, as many as they may be. As long as we can mobilize resources, we will venture into projects that emerge, provided they are viable of course.

TF : What is the real potential of WAEMU states, for solar power development ?

CA : On November 15, all experts we met confirmed that we are the region that is most exposed to sunshine around the world. Therefore, there is no reason not to do everything to tap into this source of energy. Actually, Togo’s Prime minister referred to it as a “gift of God”.

I think that it is hence our responsibility to organize ourselves to use every modern mechanism possible to exploit this resource which is the future of, not only, our continent, but BOAD’s as well. This commitment, we took five years ago and are working on it. This explains the various accreditations we have secured from these various funds.

TF : Minister Wadagni of Benin recently recommended the use of innovative financial tools to increase fund mobilization at low rates. Has this helped you set your future course?   

CA : We must say that we have already secured a lot of funds, in various forms. Now, what must be done is to evaluate how we could allocate the funds to the various projects we are conducting. We have a lot of money so it is not really an issue. The issue resides in finding viable, bankable projects to support.

It’s our role to help our targets present such projects and for a very long time, we have been acting in the background due to our status of financial institution. We often waited for projects to come our way. Now however, we have to back project carriers, train them, help them boost skills and capacities that will enable them to develop better projects. I believe this will be a role that we will be playing more, even if it is not our primary role.

TF : BOAD plans to pour CFA50 billion every year into the climate challenge. Does this mean the bank’s actions will now be oriented only towards clean energy and climate issues?

As I said earlier, we will improve upon what we already do as these challenges still remain in the region. These include challenges related to transport, food security, and private sector support. We will still tackle these issues but climate issues have become a new concern that must be taken into account by our actions. This means that while standing by our former strategy, we will add new priorities.  

Interview by Fiacre E. Kakpo.