The Board of Directors of the African Development Bank Group has approved a €400 million partial credit guarantee for Côte d’Ivoire, to support the mobilization on international financial markets of financing for strategic environmental, social and governance (ESG) projects. The approval came on 12 July 2023.
The partial credit guarantee will enable Côte d’Ivoire to raise long-term financing from commercial banks, in line with its ESG Framework. Côte d’Ivoire has developed an ESG Framework Document that sets out the government’s commitment to environmental and social development, and strengthens governance, including for project selection, fund management, evaluation and monitoring The funds will support projects across a range of sectors, including sustainable agriculture and agro-industry, water and sanitation, renewable energy, health, affordable housing, education and vocational training, financial inclusion and entrepreneurship. Financing will also drive job creation for youth and women in rural areas of the country.
Adama Coulibaly, Côte d’Ivoire’s Minister for Economy and Finance, welcomed the approval. He said, “The provision of an AfDB Partial Credit Guarantee backing ESG-compliant borrowings is a key milestone in our financing strategy, for which ESG instruments have become an essential component. This support from the AfDB, a historical partner in the development of our country, has a real catalytic effect and enables us today to mobilize long-term financing, at an attractive cost, in line with the objectives of our medium-term debt strategy.”
“We welcome the approval of this project, which will enable Côte d’Ivoire to implement green and social projects, while diversifying its sources of financing through the mobilization of sustainable financing” said Joseph Ribeiro, African Development Bank Deputy Director General for West Africa.
“The funds raised will strengthen the implementation of Côte d’Ivoire’s National Development Plan 2021-2025, which is strongly supported by the African Development Bank Group,” he added.
The country’s National Development Plan 2021-2025 aims to pursue the structural transformation of the Ivorian economy, while ensuring inclusive and sustainable growth. It sets out strong social and environmental ambitions in the form of a series of investment projects and priority programmes.
The use of ESG loans is also in line with Côte d’Ivoire’s Medium-Term Debt Management Strategy, which aims to innovate and diversify sources of financing for strategic projects that have a high social and environmental impact.
Ahmed Attout, African Development Bank acting director for Financial Sector Development, said, “This operation demonstrates the relevance of our Partial Credit Guarantee instrument, which not only catalyzes the participation of commercial banks, but will also make it possible to optimize financing conditions for Côte d’Ivoire, with a significant extension of maturity and a competitive interest rate, at a time when access to international financial markets is proving difficult for many African countries.”