BENIN: AfDB Guarantees Loan to Finance Sustainable Projects by 2030

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BENIN: AfDB Guarantees Loan to Finance Sustainable Projects by 2030© Masaki ABE/shutterstock

After recently issuing a framework document for bond issues to achieve the United Nations Sustainable Development Goals (SDGs), Benin has obtained a partial credit guarantee from the African Development Bank (AfDB) that will enable the financing of sustainable projects by 2030.

The African Development Bank (AfDB) has granted a partial credit guarantee to the Beninese government. This flexibility granted through the African Development Fund (ADF), the AfDB’s concessional loan window, will enable Benin to raise funds in foreign currencies on long maturities from international investors for investments in areas related to sustainable development.

The projects will include agroecology, water and sanitation, health, eco-construction, education and renewable energy. According to the financial institution based in Abidjan, Ivory Coast, the aim is to support Benin in its efforts to mobilise funding to achieve the 17 United Nations Sustainable Development Goals (SDGs) by 2030.

“This instrument will enable this West African country to enhance its credit and catalyze investor financing through the mobilization of resources in line with its priorities based on the MDGs and the optimization of its financing conditions,” said Marie-Laure Akin-Olugbade, the AfDB Group’s Acting Vice President in charge of Regional Development, Integration and Service Delivery.

For his part, Romuald Wadagni, Benin’s Minister of Economy and Finance, said that this operation is in line with his financing strategy which gives priority to “development with environmental and social impact”.

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In July 2022, as part of this policy, the World Bank granted additional financing of 250 million dollars (164 billion CFA francs) for the implementation of the Universal Access to Drinking Water in Rural Areas Programme in Benin (Aqua-Vie). The funds will be used to build 80 new multi-village drinking water supply systems that will supply 3 million people through standpipes and house connections. The programme accelerates the achievement of the United Nations’ Sustainable Development Goal 6 (SDG 6) which calls for universal access to safe drinking water and sanitation by 2030.

Benoit-Ivan Wansi

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