OHADA Strengthening Credit Infrastructure Project (IFC-604977)

Countries
  • Burkina Faso
  • Congo, Democratic Republic of
  • Gabon
  • Ivory Coast
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 27, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Clients not available at the time of the snapshot
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 6, 2023

Disclosed by Bank Jan 27, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the OHADA Strengthening Credit Infrastructure for MSME Growth Project is a follow-on IFC Advisory Services project to the OHADA UA I project (2007-2011) and OHADA UA II (2012-2017) that seeks to strengthen digital credit infrastructure to increase access to finance and minimize the impact of COVID19 on MSMEs, especially women owned firms. The project will also support activities that promote optimal usage of credit infrastructure, catalyze financing to MSMEs and crowd in additional private sector investment. This program aims to support and leverage the reach of regional central authorities such as BCEAO (West African States Central Bank), BEAC (Central African States Central Bank) and the OHADA Permanent Secretariat, as well as similar activities being implemented under different programs within OHADA.

In line with the IFC SME Finance long-term business plan on leveraging technology and innovative models to deliver greater scale and impact, the project will leverage on partnerships with industry players to gain an understanding of the market characteristics to develop and pilot innovative products aimed at expanding access to credit by MSMEs.
The project scope will cover four OHADA countries - Burkina Faso (BF), Cote d'Ivoire (CdI), DRC and Gabon - but certain reforms/activities will impact on the rest of the countries across common markets. Upon successful completion of this phase I project, a follow on program will be considered as appropriate. The choice of countries was made in agreement with the OHADA Secretariat, based on a combination of criteria including the need to have a regional balance between West and Central Africa, as well as client commitment/willingness to adopt reforms.

Component I: Enhancing the Credit Reporting Environment

The objective of this component is to enhance the credit reporting environment in the region through the review of legal frameworks, modernizing the credit information sharing systems and the development and deployment of value-added services. This component is aimed at promoting access to credit by MSMEs with thin or no credit files. This component will support policy and infrastructure development work in CEMAC and DRC, while the activities in UEMOA will support the implementation of value-added services.

1.1 Enhancing policy and regulatory framework

1.2 Support the establishment of credit reporting system

1.3 Expand information sharing through onboarding of non-bank financial institutions

Component II: Enhancing Regulatory and Institutional Frameworks for Movable Asset Lending

The objective is to promote movable asset-based lending by enhancing the effectiveness of the movable asset financing system established in CdI and Gabon under previous IC projects and support the establishment and sustained operation of a movable asset collateral registry in BF and DRC. It will also support market creation activities to boost access to credit by MSMEs that do not have real estate/immovable assets, often preferred by FIs as security for loans and create upstream investment opportunities for IFC.

2.1 Promote the Adoption of Regulatory and Supervisory Frameworks that will facilitate Asset-Based Lending

2.2 Operationalization and digitalization of the commercial and collateral registry (RCCM)

Component III: NPL Management and COVID Response

The objective of this component is to assist the region in dealing with a potential surge in NPLs due to the COVID pandemic. Although an effective NPL strategy involves several responses at a prudential, regulatory and legislative level, strengthening the insolvency framework and distressed asset market will assist the region in resolving potential NPLs in a manner that aims to maximize creditor recovery.

3.1 Support the implementation of NPL out-of-court workout arrangements

3.2 Support the development and deployment of “COVID 19 Business Rating/Index for firms”

3.3 Support the establishment and strengthening of SME Rating

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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No contact information provided at the time of disclosure.

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works