FINANCING OF THE PRIVATE A SECTOR BY REGIONAL

Economic
Community of
West African
States
(
(ECOWAS)
)
Investment and
Development Bank of
ECOWAS
((BIDC)
FINANCING OF THE PRIVATE
SECTOR BY REGIONAL
A
INSTITUTIONS IN WEST
A
AFRICA
A:
THE CASE OF BIDC
Accra, 31 October 2007
BIDC / Financement du secteur privé
Items
Pages
Introduction
2
Presentation of BIDC
2
Funding Strategy for the private sector
3
Funding Programme for 2007-2011
5
State of p
private sector funding
g as at 31 December 2006
7
Conclusion
8
Présentation du 05 juin 2007
2
BIDC / Financement du secteur privé
Introduction :
1
Wilingness of Heads of State and government :
See private sector, engine of development in the sub-region
2 Has led to the transformation of the ECOWAS Fund into a
banking holding: BIDC
3
This paper deals with the strategy of the BIDC, the balance sheet of its commitments and
prospects for funding the private sector in the next five years
Présentation du 05 juin 2007
3
BIDC / Financement du secteur privé
Presentation of BIDC : Vision and mission
Vision: To be the first regional investment
and development institution in West Africa
and an instrument for
f
A mission assigned by the Heads of State and
Government of ECOWAS, in 2 points
1
3
Fight against poverty
Contribute to the realisation of the
objectives
of the Community through the
funding
of integration & others
2
Job promotion
1
Wealth creation
Présentation du 05 juin 2007
2
Contribute to the development of
the Community through the
funding of
special programmes
4
BIDC / Financement du secteur privé
Presentation of BIDC : Organisation
Born out of the transformation of the former ECOWAS Fund, BIDC has witnessed two forms of
operations
Since January
2007
1999
BIDC Holding
Guarantor of mission and
supervision of the two
specialized branches
Sole Organisation
• President
FRDC
BRIC
Dedicated to the
financing of the public
sector
Dedicated to the
financing
g of the p
public
sector
Présentation du 05 juin 2007
• Vice President ,
responsible for Finance and
Institutional Services
• Vice President ,
responsible for Operations
5
BIDC / Financement du secteur privé
Funding Strategy: Strategic sectoral Areas of intervention
Apart from taking into account the objectives of NEPAD, Millenium Development and the
emergence of a regional financial market, BIDC intervenes in the private sector in three areas.
™ Environment
Industry and services
™ Telecoms
1
™ Agro-industry
™ Transport
2
™ Trade
Trade infrastructure
™ Hotel and tourism
™ Pharmacy
™ Mines
Energy nad Water
™ Productionworks
3
™ Processing units
™ Distribution infrastructure snd equipment
Présentation du 05 juin 2007
6
BIDC / Financement du secteur privé
Funding strategy : Forms of intervention
Instruments
comprising
1
Medium and long term loans
2
Shares
Co-funding or grouping of loans
3
Granting of credit lines and establishment of framework
4
agrfeements for re-financing
Loans, bonds and deeds issue and guarantee
5
Financial engineering and financial services
operatiions
Présentation du 05 juin 2007
6
7
BIDC / Financement du secteur privé
Funding strategy: Priorities
Di
Diversification
ifi ti
off the
th
industrial fabric
3 areas of priority
Are included in the 5-year plan
2007 - 2011
Strengthening the industrial
and competitiveness base
Rationalisation and
development of local
resources
Présentation du 05 juin 2007
8
BIDC / Financement du secteur privé
Funding Programme 2007-2011 : Commitments and allocation
Montant e
en millions d'UC
Engagem ents
envisagés
800
700
Concentration on
Infrastructure,
and Industry
600
500
Garanties annuelles
400
300
Prêts directs annuels
Engagements cumulés
Répartition par secteur
des prêts directs
enmillions d'UC et %
200
100
0
2007
2008
2009
2010
Années
2011
Progression
moyenne
41%
Commerce
17%
Energie & eau
7%
Infrastructures
45%
Industrie & Services
31%
Commitments
In the 5-year plan
2007 - 2011
Présentation du 05 juin 2007
9
BIDC / Financement du secteur privé
Funding Programme 2007-2011 : Changes in direct loans
Commitments
Details of changes
g in direct loans by
y sector
Monta
ant en millions
s d'UC
Evolution des prêts
directs par secteur
80,00
70,00
60 00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
2007
2008
2009
2010
2011
Infras tructures
24,18
36,11
46,94
58,68
73,36
Indus trie & Services
12,30
26,33
34,23
42,79
53,49
Energie & eau
3,80
6,02
7,82
9,78
12,23
Com m erce
3,80
15,05
19,56
24,45
30,56
Années
Présentation du 05 juin 2007
10
BIDC / Financement du secteur privé
State of funding as at 31 December 2006 : Commitments and allocatiion
Montant en m
millions d'UC
Engagem ents
2005 et 2006
80,00
70,00
60,00
50,00
40,00
,
30,00
20,00
10,00
0,00
prises de participation
Répartition par secteur
des prêts directs
enmillions d'UC et %
Garnties
Prêts direct
Concentration
On iindustry
Total engagements
2005
2006
Années
Infrastructures
20%
Energie & eau
46%
Industrie & Services
34%
Commitments
As partained in 2005 and 2006
Présentation du 05 juin 2007
11
BIDC / Financement du secteur privé
State of funding as at 31 December 2006 : Changes in direct loans
Commitments
Details of changes in direct loans by sector
Ré par tition e t é volution
de s prê ts dire cts
par secteur
Concentration
On ’industrry
Montant enmillionsd'UC
25,00
20,00
15,00
10,00
5 00
5,00
0,00
2005
2006
9,20
9,20
Industrie & Services
15,72
15,72
Energie & eau
20,92
20,92
Inf rastructures
Anné e s
Présentation du 05 juin 2007
12
BIDC / Financement du secteur privé
Conclusion :
Economic development of the sub-region depends
undoubtedly
d bt dl on its
it industrialisation,
i d t i li ti
with
ith the
th private
i t
sector as the engine.
The BIDC, in its financig strategy, will put emphasis
not only
y on road,, rail,, port,
p , solid energy
gy infrastructure,,
but also on the establishment of a diversified and
competitive industrial base and on enhanced, dynamic
and
d prosperous intra-regional
i t
i
l trade.
t d
Présentation du 05 juin 2007
13