Created on February 10, 1977 in Kigali (RWANDA), the Fonds Africain de Garantie et de Coopération Economique (FAGACE) is a public international financial institution whose purpose is to contribute to the economic and social development of its member states by participating in their development projects through guarantees, or by facilitating their implementation through accompanying measures such as interest rate subsidies or extended credit periods. Comprising eight countries at its inception, the Fund’s policy of openness to other countries and institutions has now expanded to include 12 member states: Benin, Burkina Faso, Cameroon, Central African Republic, Côte d’Ivoire, Guinea Bissau, Mali, Mauritania, Niger, Rwanda, Senegal and Togo.
In line with its objectives, over the 33 years of its existence the Fund has contributed to the realization of more than 260 development projects in its member states. To date, its guarantee operations amount to 279.5 billion FCFA, and have mobilized more than 1,000 billion FCFA for the telecommunications, transport, energy, agriculture, agro-industry, industry, livestock and trade sectors. In terms of interest-rate subsidies, the Institution’s interventions amount to around 6 billion for 45 projects with a proven economic and social impact in member states.
These appreciable results are the fruit of the dynamic model that the Fund has followed since its creation. This has enabled it to grow from an endowment capital of 5 billion FCFA at its inception, to an authorized share capital of 100 billion FCFA, subscribed for 39.5 billion FCFA mainly by sovereign African member states.
With a view to pursuing the growth of its activities for the economic and social development of Africa, and to better meet the challenges facing the institution due in particular to the adverse effects of the global economic and financial crisis, the MADOFF crisis, the crisis in the agricultural (coffee, cocoa, cotton) and fishing sectors, the unfavorable provisions of OHADA texts for the guarantors’ professions, and the failure to comply with orthodox principles of good governance of financial institutions in Africa, the Fund has undertaken major reforms since 2008.
Following the 1st Extraordinary Session of the Fund’s Board of Directors in November 2009, Henri-Marie DONDRA, a technocrat of Central African nationality, was appointed interim Managing Director of the Fund, replacing Libasse SAMB, who had been suspended for serious misconduct.
Having fully met the expectations of the Board of Directors, who had given him a clearly defined remit, Mr Henri-Marie DONDRA will be confirmed as Managing Director of the Fund on February 12, 2010 at the 2ndSession of the Board of Governors, which is essentially made up of the Finance Ministers of the member states. On the same occasion, the Board of Governors examined and approved the implementation of a Short-Term Recovery Plan (PRCT 2010-2011) proposed by the new General Management. This plan, which emphasizes the implementation of bold actions to recover the Fund’s receivables, reduce expenses, strengthen the internal and external control system, rigorously define and take into account prudential standards, and refocus the Fund’s activities on its core business, also and above all provides for the call for a significant tranche of capital to strengthen the Fund’s financial resources.
Mr Henri- Marie DONDRA has spared no effort to achieve this last point, which is the sine qua non of the Fund’s sustainability. Cleaning up the institution’s finances, refocusing the budget, recovering debts, building a strong, united and motivated team, resuming cooperative relations with partners, and raising member states’ awareness of the need to safeguard the economic and financial tool of regional integration have been the watchwords of the actions implemented since November 2009.
In view of the encouraging results achieved, the Board of Governors, at its 1st Extraordinary Session held on May 31, 2010 in Abidjan, reaffirmed its commitment to the future of this institution by deciding to strengthen its financial resources. 16.3 billion FCFA will thus be released by member states for the benefit of the Fund.
Cet engagement des Etats souverains (qui constitue un signal fort à l’endroit des banques de développement et commerciales) combiné aux qualités humaines et professionnelles de l’équipe dirigeante laisse présager sans aucun doute, de beaux jours à venir pour le FAGACE dont la crédibilité est plus que jamais incontestable.
