The military-led governments of Mali, Burkina Faso and Niger have inaugurated a regional investment bank with initial capital of 500 billion CFA francs ($895 million) to finance infrastructure, energy and agricultural projects.
The bank will pool resources from the three mineral-rich Sahel nations, with Mali and Burkina Faso among Africa’s top gold producers and Niger holding significant uranium reserves, Business Insider Africa reported.
“Creating a development bank is a matter of financial stability, economic development and financing strategic projects,” Burkina Faso’s Finance Minister Aboubakar Nacanabo said after a signing ceremony in Bamako, Mali’s capital.
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To capitalise the lender, In July, Business Insider Africa reported that each country plans to contribute around 5 percent of tax revenues, according to Serge Balima, an adviser to Burkina Faso’s junta leader Ibrahim Traoré.
The initiative is part of a broader effort to reduce dependence on foreign donors and assert greater control over national development agendas.
The three nations, which have withdrawn from the Economic Community of West African States (ECOWAS), have cited the bloc’s failure to support their fight against a growing Islamist insurgency.
Mali’s Finance Minister Alousséni Sanou said the bank is now officially operational following the commitment of its initial capital. The next step will be appointing its leadership to mobilise additional funding across the region.
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Image Credit: Business Insider Africa
