Antananarivo, November 28, 2008—IFC,
a member of the World Bank Group, announced today that it will issue guarantees
against Bank of Africa-Madagascar’s underlying trade transactions, enabling
the bank to better support Madagascar’s importers and exporters and helping
increase the country’s international trade.
The $15 million facility is part of
an IFC program that guarantees bank risk in emerging markets, enabling
banks to expand their trade finance transactions within an extensive network
of counterparts and countries.
“Working with IFC will enable BoA-Madagascar’s
to better provide our clients with the services they need to expand their
businesses and integrate into the global economy,” said BoA-Madagascar’s
Chairman Paul Derreumaux. “The agreement builds upon our strong existing
relationship with IFC.”
IFC has been a shareholder in BoA-Madagascar
“A strong financial system is crucial
for developing a well-functioning private sector that generates economic
growth, stimulates regional integration and reduces poverty” said IFC
Executive Vice President and CEO Lars Thunell. “The trade finance facility
with BoA-Madagascar demonstrates IFC’s commitment to supporting our clients
amid the current turmoil in global financial markets.”
Thunell was in Madagascar on a three-day
visit to highlight IFC’s commitment to the country. His agenda included
meetings with key development partners and government officials, including
President Marc Ravalomanana; Prime Minister Charles Rabemananjara; Minister
of Economy, Trade and Industry Ivohasina Razafimahefa; Minister of Finance
and Budget Haja Nirina Razafinjatovo; Minister of Energy and Mining Elysť
IFC’s strategy in Madagascar focuses
supporting the development of local financial markets; helping develop
infrastructure; promoting investments in key economic sectors such as mining,
agribusiness, and tourism; and improving the business environment.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.
Founded in 1999 during the restructuring
of the banking sector in Madagascar, BoA-Madagascar is a subsidiary of
BoA Group SA. The Bank of Africa brand is present in 11 countries spanning
across west, east and southern Africa. As of October 2008, BoA-Madagascar
had approximately 790 employees, with 55 branches across Madagascar and
total assets of about US$600 million.