Cote d’Ivoire: AfDB Extends €400 Million in Partial Credit Guarantees to Mobilize Funds for ESG Projects

The Board of Directors of the African Development Bank Group has approved a partial credit guarantee of €400 million for Côte d’Ivoire to support the mobilisation of financing for strategic environmental, social, and governance (ESG) initiatives on international financial markets. The approval was granted on July 12, 2023.

In accordance with its ESG Framework, the partial credit guarantee will enable Côte d’Ivoire to obtain long-term financing from commercial institutions. The ESG Framework Document of Côte d’Ivoire outlines the government’s commitment to environmental and social development and enhances governance, including project selection, fund management, evaluation, and monitoring. The funds will support initiatives in numerous sectors, such as sustainable agriculture and agro-industry, water and sanitation, renewable energy, health, affordable housing, education and vocational training, financial inclusion, and entrepreneurship. Financing will also facilitate the creation of jobs for rural adolescents and women.

The approval was welcomed by Côte d’Ivoire’s Minister of Economy and Finance, Adama Coulibaly. He stated, “The provision of an AfDB Partial Credit Guarantee in support of ESG-compliant borrowings is a significant milestone in our financing strategy, for which ESG instruments have become a necessity.” This support from the AfDB, a historic partner in our country’s development, has a genuine catalytic effect and enables us to mobilise long-term financing at an attractive cost in line with our medium-term debt strategy objectives.”

“We welcome the approval of this project, which will allow Côte d’Ivoire to implement green and social projects while diversifying its sources of financing through the mobilisation of sustainable financing,” said Joseph Ribeiro, Deputy Director General for West Africa at the African Development Bank. “The raised funds 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 National Development Plan 2021-2025 for Ivory Coast seeks to continue the structural transformation of the economy while assuring inclusive and sustainable growth. It outlines ambitious social and environmental goals as a series of investment initiatives and priority programmes.

The use of ESG loans is also consistent with the Medium-Term Debt Management Strategy of Côte d’Ivoire, which seeks to innovate and diversify sources of financing for strategic initiatives with a high social and environmental impact.

Ahmed Attout, acting director for Financial Sector Development at the African Development Bank, stated, “This operation demonstrates the relevance of our Partial Credit Guarantee instrument, which not only catalyses the participation of commercial banks, but will also make it possible to optimise 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 challenging.”