Findev Canada approves €20mln loan to boost agri-food, renewable energy in West Africa

Canada’s development financial institution, Findev Canada, has approved recently a €20mln loan to the West African Development Bank destined to boost agri-food and renewable energy in West Africa.

The loan is the very first agreement between the Canadian financial institution and the West African Development Bank. It will increase financing for agri-food businesses and the energy sector in West Africa.

The money will be channeled through the West African Development Bank (BOAD), under a deal signed between the two sides.

Per their agreement, BOAD will channel the credit in the form of refinancing lines to commercial banks in the region. The beneficiaries, in turn, will finance private SMEs located in the least developed countries of the Union.

The loans will be prioritized for businesses led by women and those involved in the agri-food and renewable energy sectors.

Out of the eight countries where BOAD operates, seven are considered less developed. They “are particularly vulnerable to climate change risks, which can have devastating effects on agriculture, livelihoods, and local economy,” explained Paulo Martelli, Vice President and Director of Investments at Findev Canada. According to him, the loan will not only support BOAD’s credit activities but will also increase its financing for agri-food businesses.

This agreement is the first between Findev Canada and BOAD. It is part of a larger credit facility of €150 million ($164.1 million) unlocked by the Canadian institution, the African Development Bank (AfDB), and Cassa Depositi e Prestiti.