(Ecofin Agency) - Over the past few years, BOAD has significantly increased its commitment to Benin, "In just four years, BOAD has invested the equivalent of 30% of all the funding it has provided to Benin over its 52-year history, marking a significant step up in its commitment. There is no doubt that the bank is fully committed to supporting the country's economic transformation through major infrastructure projects in transportation, energy, sanitation, industry, and the private sector.

At the Choiseul Africa Summit, held in Cotonou in late February 2025, Sandra Amichia, BOAD’s head of mission in Benin, spoke with Ecofin Agency about the bank’s evolving portfolio, its funding priorities, and its strategies to maximize impact.

Ecofin Agency (AE): How has BOAD’s portfolio in Benin evolved in recent years? What are the main areas of the bank’s involvement in the country today?

Sandra Amichia (SA): BOAD’s portfolio follows our strategic program. Since 2021, we have adopted the Djoliba Plan, with the goal of transforming BOAD into an impact-driven bank by 2025. Our mission is to drive transformation in our region and support economic integration across the eight member states. In Benin, we are turning this vision into tangible actions.

Over the past four years, we have mobilized around CFA380 billion for Benin’s economy, supporting both the public and private sectors. This marks a significant shift—these CFA380 billion represent nearly a third of all BOAD’s investments in Benin over the past 52 years. Of this, 70% went to the public sector, and 30% to the private sector. In fact, our support for the private sector has doubled in the past four years.

This shift reflects Benin’s ongoing economic transformation. BOAD is supporting both the government’s infrastructure projects and the private sector’s growth. Our key areas of focus include road infrastructure, sanitation, agriculture, food security, natural resources, and energy.

Ecofin Agency (AE): One of your key interventions was a CFA10 billion loan for new cashew nut processing units in the GDIZ. Why was this project chosen, and what impact do you expect on the cashew industry and Benin’s agro-food sector?

Sandra Amichia (SA): Our strategy focuses on adding value and creating jobs. Economic development is closely tied to improving the well-being of the population, and that’s achieved through employment. This cashew processing project aligns perfectly with both our strategy and the Benin government’s action plan.

Benin is transitioning from an economy reliant on raw material exports to one focused on local industrial transformation. In the past, raw cashew nuts were exported, but now a portion of the production is processed locally. The project has already created nearly 3,000 jobs, 90% of which are for women, mainly involved in sorting the nuts. This project serves dual purposes: it encourages local investment and job creation.

Ecofin Agency (AE): What other key projects is BOAD financing in Benin, especially in infrastructure, energy, or services?

Sandra Amichia (SA): Two key projects come to mind. The first is social housing. You may have heard about the recent launch of the sale of the first units in Ouèdo (Abomey-Calavi). BOAD contributed CFA100 billion to finance the construction of 3,035 homes. This includes developing the site with essential infrastructure such as electricity, water, and telecommunications, including fiber optics.

We’ve also contributed CFA50 billion to Cotonou’s and surrounding cities’ sanitation program. This funding focuses on managing rainwater and preventing flooding, significantly improving the quality of life for residents.

Ecofin Agency (AE): What progress has been made on these projects, and what results can you share?

Sandra Amichia (SA): As I mentioned earlier, the BOAD’s mission is to improve the living conditions of our populations. Housing projects, like the one in Ouèdo, are crucial, especially with the increasing population in urban centers like Cotonou, where the housing deficit continues to grow. This project addresses that need by providing quality, affordable homes for middle-income families.

Sanitation is equally important. In the past, during the rainy season, certain areas of the city were often inaccessible due to flooding. Now, thanks to ongoing projects, the living environment has improved significantly.

These projects not only enhance social conditions but also have a positive economic impact. Improved infrastructure creates a more attractive environment for investment and economic activity, benefiting the country as a whole.

Ecofin Agency (AE): How involved is BOAD in the projects it finances in Benin?

Sandra Amichia (SA): We are very hands-on when it comes to overseeing the projects we finance. We don’t just approve funds and walk away. Our goal is to ensure these projects deliver the development outcomes we've set. We take responsibility for monitoring their progress and ensuring they meet our goals, particularly in terms of improving people’s lives. We visit the sites regularly to ensure that the work is progressing as planned and that the intended results are being achieved. Our main priority is always the impact on the population.

AE: In September 2024, BOAD launched a program offering loans for natural disaster relief, including for Benin. What’s the purpose of this initiative, and how does it work?

SA: Climate resilience is a key issue for us and an integral part of our strategy. We've introduced innovative climate financing solutions to address the challenges our economies face. The PACAN program, in partnership with German cooperation, is one of those solutions.

When a natural disaster strikes, it's essential for governments to act swiftly to support affected populations. The longer the delay, the more severe the consequences. PACAN is a parametric insurance product that enables governments to respond quickly. Unlike traditional insurance, which requires damage assessment before payouts, parametric insurance is based on predefined weather parameters. For instance, if there’s a large-scale flood or drought, the system automatically triggers a response once specific weather thresholds are reached.

The program is currently in a two-year pilot phase with several of our member states, including Benin. If successful, it will be expanded to other countries. We’ve already seen it work effectively during the test phase in Togo.

AE: Are there any new financial initiatives or instruments being developed to support the Benin government and private sector?

SA: Absolutely. BOAD is always exploring innovative solutions to address the major challenges faced by our member states. We are continuously working to improve our financing mechanisms for both the public and private sectors.

For the private sector, we’re focusing on a range of actors, including local banks, large businesses, and small and medium-sized enterprises (SMEs). While we directly finance large businesses, we’re also establishing refinancing lines for local banks to help them support SMEs.

We’ve also developed structures like BOAD Securitization and the Regional Housing Refinancing Fund (CRRH), which are designed to assist local banks with refinancing. This will help banks free up resources to fund new projects for SMEs. These innovations are essential for boosting financing to the private sector.

As for the public sector, our strategic plan emphasizes increasing our capacity to address growing needs in infrastructure, agriculture, energy, and private sector development. We recently raised additional capital through a $500 million sustainable bond issue, which will allow us to better support these sectors.

For the 2021-2025 Djoliba Plan, we’ve set a goal of mobilizing 3.3 trillion CFA francs to support the eight economies of WAEMU. We are confident we’ll meet this target and are putting everything in place to ensure we achieve these goals.

AE: What does Benin need to do to maximize its financing opportunities with BOAD?

SA: Benin is a model for economic transformation in the region, and the conditions are already in place.

For BOAD, it’s essential to be at the heart of the country’s economic development policy. This is only possible by financing key, high-impact projects that directly improve people’s lives. BOAD will continue to play a full role in supporting Benin’s economic and social development efforts.

As mentioned earlier, we’ve scaled up our interventions. Over the past four years, we’ve invested nearly a third of all the money BOAD has put into Benin over the last 52 years. This shows our strong commitment to having a lasting impact on the country’s development and supporting government programs.

We will continue in this direction because the needs remain significant. As the president of Africa 50 said during the opening ceremony of the Choiseul Africa Summit, these needs are urgent, and it’s crucial to act quickly. BOAD is fully committed to this effort, ensuring a more prosperous future for the people of Benin. That future is being built today by financing the key sectors in Benin’s government action plan.