ECOWAS to Launch of Energy and Transport Sectors Fund by End of 2024.
This initiative aims to tackle a significant financing shortfall of more than $12 billion annually for infrastructure development within the integration area. Regional authorities plan to establish this fund, housed within the ECOWAS Bank for Investment and Development (EBID), as a crucial financial tool to address infrastructure deficits in the energy and transportation realms.
During the inaugural ECOWAS Investment Forum (EIF) on April 4, Sédiko Douka, the ECOWAS Commissioner of Infrastructure, Energy, Mines, Water, Digitalization, and Postal Services, announced intentions to officially introduce the ECOWAS Development and Financing Fund for Transport and Energy Sectors (FODETE) before the year’s end. Despite facing significant delays since its approval in Abuja, Nigeria, on June 22, 2009, the initiative gained traction amid regional tensions between 2020 and 2022.
Douka disclosed that the fund, endorsed by ECOWAS Heads of State and Government, will be funded through levies on exported products from member countries. These targeted exports include agricultural, mining, oil, and gas products, reflecting the increase in significant reserves in recent years.
“We have conducted thorough simulations based on data from these products, and the results show the capacity to mobilize up to $450 million annually,” said Douka, speaking on behalf of the President of the ECOWAS Commission.
The fund is designated to enhance critical infrastructure in the transportation and energy sectors, seen as essential for economic growth and regional integration. Its management will be entrusted to EBID to ensure efficient and transparent administration. The Lome-based bank, ECOWAS’s financial arm with commitments reaching $4 billion this year, allocates 50% of its financing to integration infrastructure projects, particularly in energy and transportation.
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However, it remains uncertain whether regional consensus has been reached among member countries, especially given recent regional tensions, with some members excluded from decision-making bodies. Additionally, the levy rate has not been disclosed.
