BANK OF AFRICA – GHANA (BOA-GHANA) commenced operation in Ghana in 2011 after BANK OF AFRICA Group (BOA Group) acquired majority interest in Amalgamated Bank (Amalbank) on 2nd of February 2011.

With this acquisition, the BOA Group has consolidated its presence within the West African region and is therefore strategically well placed to facilitate cross – border trade within the larger West African region.

The BOA Group has presence in 14 African countries namely Benin, Burkina Faso, Burundi, Democratic Republic Of Congo, Djibouti, Ghana, Ivory Coast, Kenya, Madagascar, Mali, Niger, Senegal, Tanzania and Uganda. Additionally, the BOA Group owns three leasing companies, a housing finance company, a stock brokerage company, two investment companies and an Information Technology subsidiary. 

BOA Group’s majority shareholder, is Bank Maroccaine du Commerce Exterieur (BMCE Bank). BMCE Bank is Africa’s twelfth (12th ) largest bank and is actively involved in Capital Market, Asset Management, Stock Brokerage, Consumer Credit, Asset Leasing, Credit Insurance, Custody and Advisory services.

BOA-GHANA is a commercial bank, offering a wide range of financial products and services that covers sectors of Retail, SME and Corporate Banking. The Bank has 19Branches around Ghana, with about 383 Staff members.

The total Project cost will be US$ 28mn comprised of :
An Equity investment of US$8mn through a subscription of new common shares of the Bank.
A Senior Unsecured Loan Facility of US$ 10mn with a tenor of 5 years for on-lending the SME sector in Ghana.
A Trade Finance Facility of US$ 10mn for trade transactions of up to 12 months to support Trade Finance Transactions of SME in Ghana.

18.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity	10.0

* These investment figures are indicative

BOA Ghana Limited Head Office located at

C131/3 Farrar Avenue,
Adabraka,
Accra.
Ghana

The Project is expected to have high development impact in the following areas:

(i) Improved Access to Finance: Injecting fresh capital into the Bank would allow for growth as the Bank would be able to further leverage itself to fund growth in the strategic focus area of SME and the currently unbanked rural populous.

(ii) Demonstration Effect: IFC is helping to demonstrate the soundness and viability of the Ghana Banking Sector. It is expected that there will be new private sector entrants be it via new institutions or additional investment in existing enterprises, this will help to increase the reach of financial services and products in Ghana.

IFC''s additionality to this Project includes:

(i) IFC''s ability to provide a package of equity and debt, trade finance support and advisory services to support Amal Bank: Few other organizations are able or willing to provide this combination of resources to this type of project. The proposed project will strengthen the Bank''s capital base and enhance its capacity to sustainably manage its growth.

(ii) IFC''s knowledge and expertise in SME Banking is strong and brings significant value-added to the proposed project: The low banking penetration within the SME sector in Ghana presents a great opportunity for the Bank to achieve growth. The proposed corporate governance (CG) review and if needed CG Technical Assistance would strengthen the management and board oversight of the Bank.

(iii) IFC has a unique credibility among prospective investors and local banking authorities: IFC has built strong credibility among industry players and government authorities. This credibility will help the Bank raise additional resources should they be required.

The project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. The Applicable Performance Requirements for this project are the Exclusion List, the applicable National Laws in Ghana and the Performance Standards. BOA Ghana is a new client and during appraisal IFC analyzed the FI portfolio for types of loans provided and industry sectors covered. IFC also analyzed the potential social and environmental risks associated with the bank''s activities, and the bank’s environmental and social risk management procedures.

BOA Ghana is a universal bank which provides retail, SME, corporate and project finance to clients in Ghana across a number of industry sectors with the highest exposures to construction, finance and service sectors. The bank has no Environmental and Social Management System (ESMS) and does not conduct Environmental and Social Due Diligence (ESDD) as part of its loan review process. The bank’s E&S compliance measures are limited to requesting for applicable government permits and licences. The Bank will be required to develop an ESMS which includes detailed ESDD procedures to cover E&S risk assessments for all lending activities. The ESMS needs to include screening against the Exclusion List, National Laws and IFC’s Performance Standards. BOA Ghana’s compliance with PS2 on labour and working conditions was also reviewed during appraisal and the bank was found to be compliant.

The bank will be required to: (i) Nominate an E&S Officer and notify IFC prior to commitment; (ii) Develop an ESMS in line with the applicable requirements to cover all lending activities and submit to IFC prior to disbursement; (iii) Provide training to staff on the implementation of the ESMS and commit to implementing the ESMS to ensure that its lending activities are in compliance with the Exclusion List, applicable National Laws in Ghana and the Performance Standards; and (iv) Submit an annual report on E&S performance in the format to be provided by IFC.