West Africa Tries a New Way to Lend in Its Own Currency With €200 Million Deal

Mintesinot Niggusie

The West African Development Bank (BOAD) and PROPARCO have signed a 200 million euro financing agreement aimed at expanding local currency lending across West Africa and reducing dependence on foreign-currency funding for private-sector investment.

Announced on the sidelines of the Africa Forward summit, the deal is structured as a cross-currency transaction between the euro and the CFA franc, arranged by Galite. The institutions described it as a first-of-its-kind arrangement in scale and design.

At its core, the facility is intended to ease long-standing constraints in West Africa’s financing system, where businesses often face exposure to foreign exchange volatility when borrowing in hard currency.

By expanding access to CFA franc-denominated funding, the agreement is expected to diversify financing sources for companies operating in the West African Economic and Monetary Union (WAEMU) and support a more stable lending environment.

Françoise Lombard, chief executive of PROPARCO, said the initiative reflects a broader push to reshape development finance by increasing the mobilisation of local currency resources, providing a tangible solution for local businesses.

Serge Ekué, president of BOAD, added that expanding financing instruments is essential to support structural transformation across member economies, helping channel more funding toward projects with high economic and social returns across the region.