The military-led governments of Mali, Burkina Faso and Niger have launched a regional investment bank capitalised at 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, according to Bloomberg. Mali and Burkina Faso are among Africa’s leading gold producers, while Niger holds significant uranium reserves.
“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.
Business Insider Africa reported in July that the three countries planned to introduce new taxes to fund the lender. Each nation is expected to contribute about 5% of tax revenues to capitalise the bank, Serge Balima, an adviser to Burkina Faso’s junta leader Ibrahim Traoré, said at the time.The move is part of a broader effort to reduce reliance on foreign donors and assert greater control over their development agendas.
The three countries, which have withdrawn from the Economic Community of West African States (ECOWAS), are grappling with mounting challenges, including political instability and climate pressures.They have accused the bloc of failing to support their fight against a widening 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, he added, will be the appointment of its leadership, tasked with mobilising additional funding across the region.