WASHINGTON, D.C. May 7, 1998 - IFC
signed today an investment agreement that marks the final step in the privatization
of the Banque pour le Financement du Commerce et des Investissements du
Burkina (BFCIB). IFC agreed to purchase a 10% equity stake from the
government of Burkina, resulting in the reduction of the Burkinabe government’s
shareholding from 66% to 15%.
Along with the 10 % IFC block, a 41% block was sold to a foreign investor
consortium led by Société Générale, France’s largest private commercial
bank. The remaining 34% shareholding is held by Burkinabe private
The privatized bank, headquartered in Ouagadougou, Burkina Faso, will be
renamed Société Générale de Banques au Burkina (SGBB) and managed under
a technical assistance agreement with Société Générale, which already has
four affiliates in West Africa. Drawing on its expertise and international
network, Société Générale plans to expand the bank’s operations and to
upgrade it into a modern commercial bank providing high quality products
His Excellency Mr.Tertius Zongo, Minister of Finance of Burkina Faso, Mr.
Alain Plusquellec, Head of Relations with Multilateral Institutions at
Société Générale and Mr. Jannik Lindbaek, Vice-President of IFC signed
the investment agreement.
Mr. Zongo declared that "IFC had played an important neutral broker
role between his government and the consortium of foreign investors and
IFC’s presence in the shareholding will further enhance the credibility
of the privatized bank".
IFC, part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets and providing technical assistance and
advice to governments and businesses.