(Agence Ecofin) – Meeting in Abidjan on June 21, the FSA’s board of governors validated the institution’s 2023 results with a 29% increase in net profit. Building on positive prospects, an agreement was signed with BADEA for a capital increase while two new countries joined the fund.
The Arab Bank for Economic Development in Africa (BADEA) will support an operation to increase the capital of the African Solidarity Fund (FSA), in the order of $286.8 million. The announcement was made this Friday June 21, 2024 by Ahmadou Abdoulaye Diallo, Director of the Fund.
This support is part of an agreement signed between the two institutions on the occasion of the 3rd ordinary session of FSA governors, which was held in Abidjan. According to Mr. Diallo, this operation will allow the institution to considerably increase its capacities and operations for the coming years.
“ BADEA is committed to financing this capital increase by granting concessional loans to our states to enable them to release their subscriptions, which is commendable. I’m talking about fairly significant amounts of around 176 billion (FCFA editor’s note). This capital increase will make the African Solidarity Fund the best capitalized fund in Africa » he clarified.
This capital increase is part of a context of improvement in the Fund’s performance in recent years. For the 2023 financial year, the FSA posted positive results, generating a profit of 2.2 billion FCFA ($3.5 million) up 29.4% compared to the previous year, for a total volume of operations of 245.6 billion FCFA ($402 million). Results, which according to Nialé Kaba, Minister of Economy and Planning of Côte d’Ivoire and current president of the board of governors of the FSA, consolidate the leadership of the Fund in supporting the development of African countries while allowing it to attract more partners.
“ We welcomed the accession of Morocco and Sierra Leone following a dialogue process which lasted two years. There are six other countries that have applied to join. And we encouraged the director general to speed up the process. And above all, to ensure that this institution which is today an observer of the African Union can lead all the countries of the continent to give it the chance to more easily access the title of specialized institution of the Union African » she indicated to journalists.
As a reminder, the FSA aims to contribute to the economic development and social progress of its African member states, by facilitating, through its intervention techniques, access to the financial resources necessary for the realization of investment projects and other income-generating activities. Apart from BADEA, the institution signed an agreement with the African Development Bank (AfDB) to strengthen its capacities on the continent.
Mutiou Adjibi Nourou
