French Development Agency (AFD) provides WAEMU states €175 million, to face Covid-19 and climate change

Finance
Wednesday, 08 July 2020 16:00
French Development Agency (AFD) provides WAEMU states €175 million, to face Covid-19 and climate change

(Togo First) - On July 7, 2020, the French Development Agency (AFD) and the Banque Ouest-Africaine de Développement (BOAD) inked two financing agreements worth a total of €175 million (or XOF115 billion). The funds are to make the WAEMU states more resilient to the Covid-19 and climate change. 

According to a related statement, the first agreement, for €100 million, “will help the regional lender in its actions to tackle the pandemic. It will help finance responses of the WAEMU member states, in line with an initiative carried out by the BOAD, the BCEAO, and the WAEMU Commission.”

As part of this initiative, “a low-cost emergency loan of XO15 billion has been made available for each member state (thus making a total of XOF120 billion for the union)”, the statement further indicates. Part of the money will also be used to support the private sector in its investments aimed at fostering economic recovery in the region. 

Regarding the second agreement, it combines a €75 million credit line and a subsidy of €600,000. Both facilities should enable the adoption of resilient, low-carbon, economic models across the WAEMU. However, the credit line will specifically finance projects that reduce greenhouse gas emissions (25% of the loan), and help the most vulnerable populations in the region adapt to climate change’s consequences (75%).

Séna Akoda

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