ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
NOT AN OFFICIAL UNCTAD
DOCUMENT
Accra
November 2006
ECONOMIC COMMUNITY OF
WEST AFRICAN STATES (ECOWAS)
ECONOMIC INDICATORS
4Population : 240 000 000
4Surface Area : 6 184 000 KM2
4Regional GDP: US $ 71.3
billion
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT
Part 1 :
INSTITUTIONAL
FRAMEWORK
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Establishment
The ECOWAS Bank for investment and development
(EBID) was establish by decision of the Authority of Heads of
States and Governments of the Community in December 1999.
Vision
EBID intends to become the leading regional investment and
development financing institution in West Africa. It also aims at
becoming a tool for poverty reduction, wealth and job creation so
as to help raise the living standards of the people of the region.
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Mission and corporate objectives
q Create an enabling environment for the emergence of
economically strong, industrialized and prosperous West
Africa
4 “ Contributing to the realisation of ECOWAS objectives by
supporting regional integration infrastructure projects or any
other development projects in the public and private sectors ”
4 Supporting the development of the community through the
financing of special programmes or projects
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
EBID HOLDING COMPANY
Board of Governors
Board of Directors of EBID
President of EBID
ERDF
General Meeting of Shareholders
ERIB
General Meeting of Shareholders
Board of Directors of ERDF
Board of Directors of ERIB
Managing Director of ERDF
Managing Director of ERIB
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Capital structure
4 initial authorised capital : 603 million UA (about USD 750
million)
4 Capital structure :
ECOWAS Member States : 66.67 %
Non-regional members
: 33.33 %
Called-up capital
: 35
%
Callable capital
: 65
%
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Capital structure
Proposed shareholding
structure
Structure of callable and
called-up capital
33.33 %
35 %
66.67 %
Member States
Non-Regional members
65 %
Called-up capital
Callable capital
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Part 2:
SECTORS OF
INTERVENTION
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
The two sectors which benefit from
the interventions of EBID
Public sector
Private sector
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Public sector
4Granting loans to finance basic infrastructure, economic and
social development projects in Member States.
4Granting loans to finance feasibility studies
4Granting loans to finance the Community’s special
programmes
4Providing assistance to Member States
4 Investment and management of special Funds
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Areas of intervention under the public sector
Basic Infrastructure, Health
Poverty
reduction
Microfinance
Education and professional training
Rural and semi-urban development and environment
Social sector
Industry
Production, transmission and distribution of energy
Development of
economic
infrastructure
Transport, telecommunications
Irrigation and control of the flooding of rivers
Integration of regional production into the global economy
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Private sector
4Long and medium term loans for commercial projects
4Other financial institutions for the financing of investments
under framework financing agreements
4Co-financing or loan syndication for investment projects
4Issue and guarantee of borrowings, bonds, national, regional
or international debenture bonds or securities
4Financing feasibility studies of investment projects
4 Financial engineering and sundry financial services
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Areas of intervention under the private sector
Investments
Privatisation programmes
Supporting the
Financial Sector
Restructuring of banks and specialised financial institutions
Financial support to national financial institutions
Telecommunications
Energy, Water
Development of
economic
infrastructure
Ports and airports, Transport
Industry
Environment: treatment and recycling of waste
Hospitals and private clinics, Hotel business, Real estate
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Part 3:
APPLYING TO THE
BANK FOR SUPPORT
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Applying to the
Bank for support
Ø Members States or Private promotors may apply directly
to the Bank
Ø Application should include :
Project feasibility studies
§ Terms of reference for the studies
§
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Instructions
ØProject appraisal
Ø Negotiation and presentation of the project to the board of
Directors
ØImplementation
ØCommencement and supervision
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Financing terms and conditions
RUBRIQUE
Maximum amount
Duration
Rate
PUBLIC SECTOR
PRIVATE SECTOR
US $ 1,000,000 to 15,000,000
US $ 1,000,000 to 15,000,000
10 to 20 years
5 to 10 years
1.5% – 10% per annum
7% – 13%
per annum
:
Guarantee fee
:
0.5 to 5% per annum
0.5 to 5% per annum
Document procesing fee :
Document procesing fee :
1%
fixed
1%
fixed
Guarantee fee
Fees
Promotors contribution
= 10 %
30% to 40%
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Part 4:
The achievements
of the Bank at
31/12/2005
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
As at 31 December 2005 the total commitments EBID in respect
of 45 projects amounted to UA 143,853,398 (US $ 205 710 359). The
breakdown of the commitments is as follows
Commitments
Type
Amount
(UA)
Disbursements
% share
Amount
(UA)
Rate %
(2)/(1)
Direct loan
107 355 739
74.63
67 762 510
63.12
Guarantee
36 497 659
23.37
-
-
143 853 398
100
67 762 510
-
Total
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Breakdown of commitments and
disbursements according to sector
25%
2%
73%
Direct loan
Equity
Guarantee
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Part 5:
EBID and the bio fuel
production
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Production Chain
AGRICULTURAL PRODUCTION
§Research
§Production
BIO-FUEL PRODUCTION
(Industrial production)
§Equipment
§Constructions
§Working capital
ETHANOL PRODUCTION
(PME/PMI)
§Equipment
§Constructions
§Working capital
DISTRIBUTION
(PME/PMI)
§Transport
§Fuel Station
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
AGRICULTURAL PRODUCTION
ITEM
1.
2.
Ethanol
§ Cassava
§ Sweet Potatoes
§ Sugar Cane
§ Etc…
Oil
§ Jethropha
§ Other plants
FINANCING
Ø Direct financing
Ø Lines of credit granted to national banks
Ø Guarantees granted to national banks
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
INDUSTRIAL PRODUCTION
PRODUCTION
Ethanol
ENTERPRISES
PME / PMI
PROJECT
COMPONENTS
Ø Equipment
Ø Constructions
Bio fuel
Industries
Ø Working
capital
FINANCING
Ø Direct financing
Ø Lines of credit granted
to national banks
Ø Guarantees granted to
national banks
Ø Equity
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Part 6:
STUDY CASE :
FINANCING BIO DIESEL PRODUCTION FROM
JATROPHA PLANTATION DEVELOPMENT
VALUE CHAIN
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Cost of the various components of the project
Components
Cost
1.
Jatropha plantation development
US $ 54.56 Million
2.
Marketing of physic nuts
US $ 29.73 Million
3.
Processing plant
i.
The factory land, buildings and construction
ii.
Supply of utilities to the factory
iii. Plant, machinery and equipement
iv. Working capital
Total
US $ 45 Million
US $ 129.29 Million
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
How EBID will finance the project
Amount required
US $ 35 Million
Contribution of EBID
US $ 15 Million
•Local Banks
Co-financing
•Possibility of guarantee by EBID
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
Working capital
Fincanced by local commercial Banks
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
ADVANTAGES AND RISKS
RISKS
ADVANTAGES
• Supply of raw materials
• Participation of the promotorin the financing of the
project
• Competitiveness of the product
• Environmentally friendly
ECOWAS BANK FOR INVESTMENT
AND DEVELOPMENT (EBID)
THANK YOU FOR
YOUR KIND
ATTENTION