The Central Bank of West African States (BCEAO) and the Islamic Corporation for Private Sector Development (SID) signed a Memorandum of Understanding for cooperation in the framework of the implementation of a device funding support for Small and Medium Enterprises / Small and Medium Industries (SMEs / SMIs) in the UEMOA Mr. Tiémoko Meyliet KONE, Governor of the Central Bank of West African States (BCEAO) and Mr. Khaled Al -ABOODI, Chairman and CEO of the Islamic Corporation for Private Sector Development (SID), proceeded to the signing of a Memorandum of Cooperation Agreement, January 18, 2016 in Jeddah (Saudi Arabia).This MoU provides a framework for partnership and establishes guidelines and the terms of cooperation between the CIS and the BCEAO in the context of support to finance for SMEs / SMIs in the Economic and Monetary Union of West Africa (UEMOA ). Indeed, whereas the promotion of SMEs / SMIs is an important lever fight against poverty and the emergence of the economies of Member States of the UEMOA, the Council of EU Ministers adopted at its Session of September 29, 2015, the “support mechanism to finance for SMEs / SMIs in the WAEMU” whose monitoring the implementation was entrusted to the BCEAO. Through this MoU, the SID supports the operationalization of the support mechanism to finance for SMEs / SMIs in the WAEMU through direct participation capped at $ 30 million US through instruments conform to the principles of Islamic finance. In addition, in connection with BCEAO, the SID is committed to increase the overall amount of its stake to 100 million US, based on the interest generated by the project at the level of investors and / or potential partners, by mobilizing additional resources. For its part, the BCEAO is responsible for the implementation of the support system to finance for SMEs / SMIs in the WAEMU. It supports include: • providing incentives for credit institutions to finance SME / SMI; • conducting studies on support structures and coaching SMEs / SMIs and on the impact of support mechanism to finance for SMEs / SMIs in theUEMOA. • promoting complementary instruments adapted to the financing of SMEs / SMIs (office credit, leasing, venture capital, etc.) The two institutions agreed on the importance of the contribution of SMEs / SMIs for economic development in general and in particular the private sector in member countries of the UEMOA. They emphasized their common will to work towards strengthening their cooperation, including the financing of euro area economies. On this occasion, Mr. Khaled Al Aboodi, CEO of the SID explained that the agreement will strengthen the support of the SID to the regional economies of WAEMU including promoting knowledge transfer and mobilization of resources to support SMEs / SMIs. For his part, Mr. Tiémoko Meyliet KONE, the Governor of the BCEAO, has welcomed the new partnership, which should contribute to the promotion of SMEs / SMIs in the member countries of the UEMOA. This promotion is essential to the economic transformation of the area. It is also expected from this partnership to strengthen economic growth and job creation, particularly for young people.
About the Central Bank of West African States (BCEAO) The BCEAO is Institute of common issuance eight (8) member states of the West African Monetary Union (WAMU), namely Benin, Burkina, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo. Besides its basic tasks, including the definition and implementation of monetary policy and maintaining the stability of the banking and financial system, the BCEAO supports the economic policies of WAEMU, for healthy growth and durable. About the Islamic Corporation for Private Sector Development (SID) SID is the entity of the Islamic Development Bank Group (IDB) in charge of the private sector. Its mandate is to play a complementary role to the activities of the IDB and national financing institutions in member countries by providing financing to the private sector in accordance with the principles of Islamic finance. The SID also offers advisory services to governments and private sector institutions, to encourage the creation, expansion and modernization of enterprises, development of capital markets, the adoption of best management practices and enhancing the role of the market economy. In 2014, the rating agency Fitch has assigned the SID AA / F1 + ‘with a stable outlook. In 2015, Moody’s and Standard & Poor’s assign “Aa” to the SID also with a stable outlook.