HIGHLIGHTS – BOARD MEETING OF 25 MARCH 2020

INTRODUCTION

The Board of Directors held its meeting virtually on 25 March 2020 at 10 a.m. The
Meeting was chaired by Dr. Akinwumi ADESINA, President of the Bank Group. Please
find below the key decisions reached during consideration of the agenda items.

Request for a Waiver of the Rule of Origin for a Corporate Procurement Case

The Board noted that the requested waiver was to allow bidders from non-member
countries to participate in a tender process. At the end of its deliberations, the Board
requested Management to reassess and review the waiver request in line with the
guidance given by Executive Directors.

COTE D’IVOIRE: Project to Strengthen the Structures of the Electricity System and
Access to Electricity Phase I (PROSER I)

The Board welcomed the project that seeks to secure electricity supply and improve the
quality of life for the population through access to electricity. Members noted that the
project is line with the Bank’s Ten-Year Strategy and the H5s and will ensure inclusive
growth in the country. They stressed the need to ensure greater impact of the project on
youth unemployment and gender as well as sustainability. The Board also called on
Management to ensure close follow-up of the implementation and to enhance policy
dialogue on the country’s debt level, disbursement rate, subsidies and tariff reforms to
allow greater access to electricity especially for the disadvantaged households.
Management should also engage with the country on the impact of the COVID-19 on the
fundamentals of the country’s economy. At the end of its deliberations, the Board
approved the proposed project.

ZIMBABWE – Olivine Industries Limited

The transaction is a senior loan to Olivine Industries Limited to finance part of its plant
expansion and modernization project. The Board noted the need for the Bank to support
the private sector in Zimbabwe especially as the country is facing economic challenges.
Members requested and obtained assurances that the project will positively impact youth
employment and women empowerment and that measures have been taken to mitigate
the risks related to foreign exchange, inflation and financial capacity of the major
shareholder, Wilmar. The Board was also given the assurance that the operation does
not violate the Sanctions Policy of the Bank. The Board called on Management to ensure
a close follow-up of the operation, especially given the high risk of volatility of foreign
exchange and the current global heath situation marked by COVID-19 and to step up
policy dialogue with the authorities on economic reforms. At the end of its deliberations,
the Board approved the proposed transaction.

SAO TOME AND PRINCIPE – Energy Transition and Institutional Support

Programme (ETISP)

The above project seeks to support the Government of São Tomé and Príncipe in
promoting green growth and the sustainable development of the country’s power system,
as well as strengthening public financial management and the business climate. The
Board noted that energy is a crucial sector for the country and that the project under
review will reduce the Environmental and Social (E&S) impacts of existing polluting
thermal installations; increase the share of renewable energy generation in the energy
mix; and help transition the country towards cleaner and more efficient power systems.
However, the Board called for stronger measures to mitigate the identified risks and
stressed the importance to enhance the presence of the Bank in the country to help
formulate a pipeline of projects that respond to the country’s needs. Management should
also ensure that the affected populations are compensated before the start of the project.
Executive Directors also underscored the importance of selectivity and stepping up policy
dialogue between Sao Tome and the Bank and to ensure the country’s ownership of the
project. At the end of its deliberations, the Board approved the proposed project.