Source: African Development Bank Group
The Board of Directors of the African Development Bank Group has approved a second partial credit guarantee to help Côte d’Ivoire raise funds for strategic green and social projects. This risk-sharing instrument will enable the country to access competitive financing from international commercial banks, including funding in local currency. The transaction builds on a successful €533 million Bank-guaranteed facility completed in 2023.
Côte d’Ivoire continues to show economic resilience and improved credit ratings. The West African country is committed to increasing revenue mobilization while ensuring prudent debt management.
The guarantee allows Côte d’Ivoire to diversify its funding sources and secure longer-term loans that align with its Medium-Term Debt Management Strategy for 2024-2028. It also provides access long-term local currency financing, helping address structural liquidity challenges in the regional financial market.
Proceeds will fund sectors aligned with the Sustainable Development Goals and Côte d’Ivoire’s National Development Plan 2021-2025. Priority areas include sustainable agriculture, water and sanitation, renewable energy, health, affordable housing, education, and financial inclusion.
“This operation reflects the Bank’s strategic use of risk mitigation instruments to help regional member countries access affordable, long-term capital for transformational investments,” said Solomon Quaynor, Vice-President for Private Sector, Infrastructure and Industrialization at the African Development Bank Group. “The guarantee supports Côte d’Ivoire’s efforts to embed sustainability into its financing strategy while strengthening investor confidence in the country’s macroeconomic and policy frameworks.”
The local currency component addresses chronic CFA franc liquidity shortages in the West African Monetary Union regional financial market, supporting both debt sustainability and regional capital market development.
“Over the past three years, we have approved seven guarantees to unlock close to $3 billion of competitively priced sustainable financing for our Regional Member Countries,” said Ahmed Attout, Bank Group Director for Financial Sector Development. The first guarantee’s €533 million proceeds were allocated to projects covering basic infrastructure projects, basic services, and employment and competitiveness projects, benefiting millions of Ivorians.
The new guaranteed facility will support Côte d’Ivoire’s vision of achieving upper-middle-income status by 2030 through sustainable economic transformation.