BOAD boosts credit insurance to expand financing capacity across WAEMU

The West African Development Bank (BOAD) says it has strengthened its ability to finance development projects across the West African Economic and Monetary Union (WAEMU) by expanding its sovereign portfolio credit-insurance policy to XOF297.6 billion (€454 million).

The facility, first signed in June 2023 with a consortium of private insurers, has now been scaled up as part of BOAD’s Plan Djoliba, a strategic programme aimed at optimising risk management and broadening access to financing for its eight member states, a statement from the bank said on Monday.

The Bank said the move reflects renewed confidence in its balance sheet and financing model. With insurers rated between A- and AA-, the arrangement is expected to improve the overall quality of BOAD’s loan portfolio, with potential positive effects on its investment grade rating.

According to BOAD, the enhanced credit-insurance scheme, combined with its securitisation strategy, now covers nearly €700 million in exposures, representing around 15% of its total loan book. The Bank described this as a “pillar” of its broader efforts to distribute risk and expand lending capacity.

“This extension and increase in size of the insurance policy reflect markets’ confidence in the strength of our capital base and the quality of our management,” BOAD President Serge Ekue said in a statement. “It enhances our risk profile and that of our borrowers, allowing us to mobilise resources on the best possible terms to finance sustainable development across WAEMU.”

The Bank noted that the larger policy also highlights recognition of its preferred creditor status and its “unique role” in regional development. Officials said the mechanism will give BOAD greater flexibility in raising funds for projects ranging from infrastructure to social investment, at a time when member states face growing fiscal pressures.