The African Development Bank (AfDB) has launched a project to support the development of domestic debt markets and financial systems in four West African countries namely; Sierra Leone, Guinea, Liberia and Gambia.
The project, funded from the Bank’s Transition Support Facility, will support the deepening of the primary debt markets, improve debt market infrastructure, enhance institutional capacity of relevant agencies and authorities as well as broadening the investor base in the selected countries.
“We are delighted with the partnership with the African Development Bank to support financial systems development in the West African Monetary Zone (WAMZ) particularly in the area of technical assistance and institutional capacity building. It is our desire to see further deepening in financial integration and cross border operations in the Zone,” said Dr. Olorunsola Olowofeso, Director General of the WAMI, which is the implementing agency on behalf of the four countries.
Developing debt markets will underpin the emergence of effective capital markets in the region – a driver of investment and economic growth.
“Debt market development will facilitate increased intermediation of capital, both for public and private entities, and is aligned with our vision for the emergence of well-functioning and resilient financial and capital markets in African countries,” said the Bank’s Director for Financial Sector Development Department, Stefan Nalletamby.
The West African Monetary Institute (WAMI) will cooperate closely with the participating countries to implement the project, which builds on the Bank’s earlier WAMZ payment systems project to support the upgrade of central bank payment systems in the four countries.
The Bank funding will also complement existing initiatives to enhance the development of financial systems in the WAMZ countries.
The AfDB had earlier approved a grant of UA1.5 million, or about $2 million for the project.
