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AFRICAN GUARANTEE AND ECONOMIC COOPERATION FUND

ANNUAL REPORTOMNQ

FAGACE

www.le-fagace.org

PUBLIC INTERNATIONAL ORGANIZATIONBoulevard CEN - SAD, 01 Po Box. 2045 COTONOU (BENIN)

: (229) 21 30 03 76 / 21 30 08 77 Fax: (229) 21 30 02 84E-mail: [email protected] ; [email protected]

Headquarter of FAGACE

AN INTERNATIONAL FINANCIAL INSTITUTION FOR DEVELOPMENT IN AFRICA

FAGACE

www.le-fagace.org

2014 - ANNUAL REPORT

C O N T E N T S

3

Statement from the Chairman 5

1. Introduction of FAGACE 6

2. Organs 9

3. International economic environment and situation in Africa 11

4. Activities during the year 14

4.1. Meetings of the Governing Bodies4.2. Activities of the Management4.2.1. Administrative Activities4.2.2. Legal Activities4.2.3. Operational Activities4.2.4. Cooperation and Communication4.2.5. Activities of the Regional Representative Office

for Central Africa4.2.6. Financial Situation

5. Annexure 31

5.1. Organization chart of the Fund5.2. Balance sheet and income statement5.3. Off-balance sheet commitments

PAGES

4 2014 - ANNUAL REPORT

LIST OF ABBREVIATIONSAFD French Development AgencyASE Structure d’Appui au Services et EntreprisesBACB Banque Agricole et Commerciale du BurkinaBACI Banque Atlantique de Côte d’IvoireAfDB African Development BankBCB Banque Commerciale du BurkinaBDEAC Development Bank of Central African StatesBFA Banque Pour le Financement de l’AgricultureBIA-Niger Banque Internationale pour l’Afrique au NigerBIB Banque Internationale du BurkinaBIBE Banque Internationale du BéninBICEC Banque Internationale pour le Crédit et l’Epargne au CamerounBICIA-B Banque Internationale pour le Commerce, l’Industrie et BICIS Banque Internationale pour le Commerce et l’Industrie du SénégalBID Banque Islamique de DéveloppementEBID Banque d’Investissement pour le Développement de la CEDEAOBIM Banque Islamique de la MauritanieBIS Banque Islamique du SénégalBNDA Banque Nationale de Développement AgricoleBOA Bank Of AfricaBOAD West African Development BankBRD Banque Rwandaise de DéveloppementBRIC Banque Régionale d’Investissement de la CEDEAOBRVM Regional Stock ExchangeBSIC Banque Sahélo-Saharienne pour l’Investissement et le CommerceBST Banque Sénégalo-TunisienneBTCI Banque Togolaise pour le Commerce et l’IndustrieBTP Bâtiment Travaux PublicCBAO Compagnie Bancaire pour l’Afrique de l’OuestCBCA Commercial Bank of CamerounECOWAS Economic Community of West African StatesECCAS Economic Community of Central African StatesCFA Communauté Financière AfricaineCFOA Compagnie Financière de l’Ouest AfricainCL Crédit LyonnaisCOBACI Compagnie bancaire de la Côte d’IvoireST Short TermDC/BR Central Depository/Settlement BankFACI Facilité d’Appui au Commerce InternationalFCI Finances Conseils InvestissementsFED Fonds Européen de DéveloppementFPE Fonds de Promotion EconomiqueFSA Fonds de Solidarité AfricainETI Group Ecobank Transnational Incorporated GroupGTA/C2A Groupement Togolais d’Assurances/Compagnie Africaine d’AssuranceIBCG Industrie Béninoise des Corps GrasFDE Foreign Direct Investment MLT Medium- and Long-TermGDP Gross Domestic ProductSMEX/COOPEX Small and Medium Export Companies/ Export CooperativesRFI Radio France InternationaleSCIE Société de Commercialisation d’informations d’EntreprisesSENELEC Société Sénégalaise de distribution et d’Energie ElectriqueSHELTER AFRIQUE Société pour l’Habitat et le Logement Territorial en AfriqueSP-FAB Société de Promotion du Fonds Africain pour le Développement des BiocarburantsUEMOA West African Economic and Monetary UnionUTB Union Togolaise de Banque


The year 2014 marked the 37th anniversary ofthe African Guarantee and EconomicCooperation Fund (FAGACE). In 1977, theHeads of State and Government of the

member-States, in creating our institution, weredesirous of making it an indispensable financial toolfor high value-added projects to boost growth in oureconomies.

In this regard, several financial instruments wereenvisaged; these include guarantee, direct loan,interest-rate rebate and investment loan tenor-extension.We are delighted to present to you the annual reportof the Fund for the financial year 2014.

The activities of our Institution were carried out in amoderate-growth global economic environmentcharacterised by disparities among the differentregions and among the member-States.

In such a context, as in the previous years, the year2014 was marked by the consolidation of thereorganisation of the Fund, the steps taken towardsthe diversification of its operations and the search fornew sources of funding.

Accordingly, important decisions were taken by thegoverning organs notably, the increase in theauthorised capital with a view to supporting thedynamics of the development of the Fund’s activities.

During the past year, the Fund continued to helpmember-countries through its operational activitieswhich focused principally on the prospecting (for)and identification of new projects which provided (theFund with) an important pipeline of projects receivedfrom the economies (of our member-countries).These activities also covered the approval of newprojects, the pursuit of the clean-up of the portfolioand the follow-up problem-loans (problem-projects).

The administrative and legal activities dealt essentiallywith the organisation and optimal management ofhuman and material resources, staff training and thesafe-guard of the interests of the Institution.

Concerning financial matters, the net result fortheyear was positive. This performance is explainedby the pursuit of the control of expenses, the clean-up of the loan portfolio as well as by the optimalmanagement of our financial resources by way ofplacements at acceptable average yields; all of thesemade possible the improvement in the equity(position) of the Fund.

With regard to cooperation, the Fund continued withits opoen-door policy of encouraging the membershipof new countries, national and international financialinstitutions as well as development institutions. Asfor partner-institututions, relations focusedparticularly on the creation of greater synergies ofaction with a view to obtaining a better impact on theeconomies of member-States.

During the year 2014, emphasis was equally laid oncommunication with a view to informing the partnersabout the evolution of the Fund’s situation, a movethat is expected to contribute to the improvement ofthe institution’s image as well as to the developmentof its activities.



CHAIRMAN’S STATEMENT

Ambassador Claver GATETEMinister of Finance and Economic Planning of Rwanda

Chairman of the Board of Governors


INTRODUCTION OF FAGACE CHAPITER I

Creation – Object – Functioning

The African Guarantee and Economic CooperationFund is an international financial institutionspecialised in the promotion of public and privateinvestments. Its headquarters are located inCotonou, Republic of Benin.

Member-States

The member-States, numbering fourteen (14), are:Benin, Burkina-Faso, Cameroun, Centrafrica, Congo,Côte d'Ivoire, Guinea-Bissau, Mali, Mauritania, Niger,Rwanda, Senegal, Tchad et Togo.

1.1.

BENIN BURKINA FASO CENTRAFRICA CONGO CÔTE D’IVOIRE GUINEA BISSAUCAMEROUN

MALI MAURITANIA NIGER RWANDA SENEGAL TCHAD TOGO

Countries member of FAGACE

Countries not member of FAGACE

Other Continent


Forms of intervention

The Fund :guarantees medium- and long-term loans earmarked for the financing of productive•investmentsguarantees short-term loans aimed at strengthening the financial capacity of banks and•micro-finance institutionsgrants interest-rate rebates and loan-tenor extensions for projects of economic nature whose•profitability may not be realisable under the intitial conditions of the loangrants interest-rate rebates•funds specific facilities from loans or grants•takes equity interest in the (share) capital of national or regional enterprises •manages funds for third parties•

Domaines d'intervention

Les principaux domaines d'intervention sont :

les industries de valorisation des ressources naturelles locales ou d'import substitution,•le développement rural : agriculture, élevage,•les infrastructures de base (routes, aéroports, chemin de fer, hydraulique villageoise) ou•modernes (télécommunications),le commerce (import-export),•les petites et moyennes entreprises de production de biens et services.•

Areas of intervention

The principal areas of intervention are:local natural resource-enhancement and import substitution industries•rural development: agriculture, live-stock farming •basic infrastructure (roads, airports, railways, village water supply systems) or modern•infrastructure ((telecommunications)trading/commerce (import-export),•Small and medium-scale enterprises producing goods and services•

Object

The object of FAGACE is to contribute to theeconomic and social development of the memberStates, individually and collectively, by participatingin the financing of their development projects or byfacilitating their implementation by way of

accompanying measures like interest-rate rebatesor extension of loan-tenor. Particular interest isaccorded to the member-States economically less-endowed either by reason of their geographiclocation or as a result of natural catastrophes orcalamities.


Beneficiaries

The beneficiaries of the (Fund’s) facilities are:member-States of the Institution or their agencies and organs: public organisations and•parastatals, local governments/administrationsprivate or mixed, individual or collective enterprises, newly created or at the expansion stage, having•their headquarters and principal field of activities located in one or several (member-) States national and international financial institutions •regional organisations whose activities promote the integration of the economies of member-•States.

Composition of the Organs

Administrative and Management Organs:

Administration

The Fund is administered by:

the Board of Governors, the supreme organ which comprises the Minister of Finance of•each member-State and an executive (officer) per institutional member. The Board ofGovernors sets the general policy direction, amends the statutes, appoints the ManagingDirector and the auditors The Board of Directors to which the Board of Governors delegates powers and which•compprises of a director and an alternate per member-State, a director per non-regionalmember-State and a director per institutional member. It authorizes facilities, adopts thebudget and approves the financial statements.

Management

The day-to-day management is ensured by the Managing Director. He represents the Institution,receives and evaluates all requests for facilities and follows up the portfolio of commitments.

Resources

The resources of the Fund come from:payment by members, of equity capital subscribed •borrowings•grants, gifts, legacies, donations •remunerations earned on guarantee commitments, direct lending and loan-tenor extension•facilities other sources.•

As of 31 December 2014, the authorised share capital was 350 billion CFA francs broken down asfollows:

1.2.

1.3.

COMPSITION OF THE CAPITAL OF THE FUND (Amount in CFA francs)


Authorised Capital 350 000 000 000

Called Capital (since inception) 58 327 500 000

Capital Subscribed 233 310 000 000

Callable Capital 174 982 500 000

Capital Paid-up as of 31.12.2014 29 387 897 104




M. Adji Othéth AYASSORMinister of Economy and

Finance

TOGO

ORGANESCHAPITRE II

CONSEIL DES GOUVERNEURS

Ambassador Claver GATETEMinister of Economy and Economic Planning

RWANDA

CHAIRMAN

M. Komi KOUTCHEMinister of Economy and Finance

BENINM. Jean Gustave SANON

Minister of Economy and Finance

BURKINA FASOM. Ousmane ALAMINE MEY

Minister of Finance

CAMEROUNM. Bonandélé KOUMBA

Minister of Finance and Budget

CENTRAFRICA

M. Gilbert ONDONGOMinister of Economy, Finance,Planning, Public Enterprises and

Integration

CONGOMme Nialé KABA


COTE D'IVOIREM. Gino MENDESMinister of Finance

GUINEA BISSAUM. Mamadou Igor DIARA


MALI

M. THIAM DIOMBARMinister of Finance

MAURITANIAM. Giles BAILLETMinister of Finance

NIGERM. Amadou BA

Minister of Economy, Finance andPlanning

SENEGALM. Kordje BEDOUMRAMinister of Finance and

Budget

TCHAD

BOARD OF DIRECTORS


RWANDACHAIRMANSHIP

M. Cyrille HATEGEKIMANA Adviser to the Secretary of State for Economic Planning

Ministry of Finance and Economic Planning Kigali - RWANDA

BENIN

M. Mohamed Babatundé Sanny GADOTechnical Adviser to the Minister of Economyand Finance

Ministry of Economy and Finance Cotonou-BENIN

BURKINA FASO

M. Lassané KABOREDirector General of Cooperation

Ministry of Economy and FinanceOuagadougou – BURKINA FASO

CAMEROUN

M. Sylvain BODI ZOGOHead of Division- Monetary and Financial Cooperation

Ministry of FinanceYaoundé - CAMEROUN

CENTRAFRICA

M. Victor MAZANGADirector of Public Investments

Ministry of Economy, Planning and International Cooperation Bangui - RCA

CONGO

M. Jean Claude NGAMBOUAdviser on National Financial Institutions,Money and Public Debt

Ministry of Economy and Finance Brazzaville - CONGO

CÔTE D’IVOIRE

Mme Anicou Annie KACOUTechnical Adviser to the Deputy Minister incharge of Finance in the Office of the PrimeMinister

Ministry of Economy and Finance Abidjan – COTE D’IVOIRE

GUINEA BISSAU

M. Fortes Buli INJAIDirector General of Economy and Development

Ministry of Economy, Planning and Regional IntegrationBissau – GUINEA BISSAU

MALI

M.Sory Ibrahima DIARRAAssistant Director of General Studies in the office of the Director General of Public Debt

Ministry of Finance Bamako - MALI

MAURITANIA

M. Cheikh Ould Sid AhmedTechnical Adviser to the Minister of Finance

Ministry of Finance Nouakchott - MAURITANIA

NIGER

M. Malam Mamadou MALAM Deputy Secretary-General

Ministry of Finance Niamey – NIGER

SENEGAL

M. Massar WAGUEDirector General of Finance

Ministry of Economy and Finance Dakar - SENEGAL

TCHAD

M. Abakar IBRAHIMDirector of Cabinet of the Minister of Financeand Budget

Ministry of Finance and Budget N’Djamena - TCHAD

TOGO

M. Badawasso T. GNAROSecretary-General in the Ministry of Economyand Finance

Ministry of Economy and Finance



INTERNATIONAL ECONOMIC ENVIRONMENT AND SITUATION IN AFRICA CHAPITER III

International Economic Environment

According to the report of the IMF and the WorldBank « World Economic Situation and Outlook »of 20 January 2015, global economic growthstood at 3.3%, same as in 2013. However, thisGDP growth rate hides pronounced disparitiesamong the big nations.

The world economic situation in 2014 is analysedby region:

Among the principal industrialised nations, growthin the United States rebounded better thanexpected after thecontraction observed in firstquarter of 2014 and the unmployment (rate) whichhas continued to fall while inflationary pressuresmoderated due to the appreciation of the dollarand the fall in oil prices. The growth rate whichwas 2.2% in 2013 compared to 2.4% in 2014 isexpected to exceed 3% in 2015-2016. Theeconomy continued to benefit from the strongsupport of an accommodating monetary policydespite the expected progressive rise in interestrates.

Following a similar trend, the united Kingdomrecorded a net improvement of 2.6% in its GDP,compared to 1.7% in 2013. The British economycontinues to show good performance since thefinancial crisis of 2008.

The GDP which was 0.5 negative in 2013 came upat 0.8 in 2014. Activities were supported by the fallin oil prices, a softening of the monetary policy, amore neutral budgetary policy and the recentdepreciation of the euro. But these factors wereneutralised by the weakening of the investmentoutlook, explained in part, by the slow-down inexport growth in the emerging nations. Recoveryis expected to be a little slower than projected,with an annual growth rate of 1.2% in 2015 and1.4% in 2016.

To facilitate the consolidation of their budgets,some countries, including France, obtainedadditional concession of time to reorganise theirpublic finances and rejuvenate their productioncapacities, actions that should support a moderategrowth and help meet the challenges of a

3.1.



worsened labour market.

Japan, the world’s third largest economy wastechnically in recession in the third quarter of2014. Domestic private-sector demand did notaccelerate as expected after the increase in theconsumption-tax rate during the previous quarterdespite the increase in expenditures oninfrastructure. Growth was limited to 0.1% in 2014compared to 1.6% in 2013.

In the emerging nations, the tempo of activitiesslowed down slightly. Growth was 4.4% in 2014compared to 4.7% (a year earlier). However,growth was not uniform (across these countries).The principal explanatory factors in this regardwere notably, the slowdown in the Chinese growthrate, with GDP growth rate falling from 7.8% in2013 to 7.4% in 2014, a significant deteriorationin the economic outlook for Russia where the GDPgrowth of 1.3% recorded in 2013 fell to 0.6%, withnegative growth trends going into 2015.

In the Latin America and Carribean region, theGDP growth rate was 1.2% in 2014 compared to2.8% in 2013. The rebound expected in the growth(rate) was delayed and the impact on the terms oftrade and real incomes of the fall in the price of oil(and) other primary products was weaker (than

projected). There is even the risk that this(outcome) weighs heavily on medium-termgrowth (prospects).

3.2.- Situation in Africa

In 2014, sub-Sahara Africa maintained its GDPgrowth (rate), registering an average rate thatexceeded 5%, like in the year 2013 even if , for theoil- and mineral-exporting countries like Nigeriaand South Africa, the fall in the prices of oil andprecious metals was responsible for the weakgrowth expectations for their economies.

Also, some countries faced difficulties which wereparticularly serious in a small number of countries.In Guinea, Liberia and Sierra Leon, the Ebola-virusepidemic had tremendous human and economicconsequences which compromised theireconomic outlook. Besides, the security situationin some countries remained difficult notably in theCentrafrican Republic and in South Sudan.

The North African and Middle-East regionappeared to have made a good start with a GDP(growth) of 2.8% in 2014 compared to 2.2%posted in 2013. The progressive normalisation ofthe situation arising from the Arab springcontributed to these improvements even if in some



countries, like Libya, conflicts between rivalextremist groups limit this positive trend.

The East African economies remained strong.Three countries namely, Kenya, Sudan andEthiopia form part of the Top Ten (economies) onthe continent. Uganda and Tanzania also remainedgrowth locomotives in this region. The principalgrowth sectors in these countries aretelecommunications and transport, finance,tourism, construction as well as foreign directinvestments. In GDP terms, they achieved anaverage rate of 6% for the year 2014, roughly thesame as in 2013, rate expected at around 7% in2015.

In Southern Africa, the growth rate was about 5%in 2014 compared to 3.6% in 2013 and isprojected at 6.8% in 2015. The Southern Africangrowth outlook continued to improve. In SouthAfrica, the sub-regional growth locomotive, theeconomy made a slow but steady progress,accounted for in part, by the rebound of its netexports and reforms aimed at de-bottlenecking theenergy sector. The 2.2% growth rate achieved in2013 compared to the 1.4% obtained in 2014 wasexpected to hit 2.1% in 2015 and 2.5% in 2016.

In the CEMAC zone, the BEAC (Central Bank ofCentral Africa) noted a weakening of economicgrowth, at 4.9% in 2014 compared to a projected

5.6%, reflecting principally the effect of the fall inoil prices and a weak domestic demand. Fourmember-States of the Fund are in the CEMAC zone(Cameroun, Centrafrican Republic, Congo andTchad).

Overall, the growth dynamic continued and thetotality of the fundamentals remained solid despitethe difficult international environment. Eight (8) ofthe current fourteen member-States are located inthe UEMOA zone.

Two member-countries, Rwanda and Mauritaniaare outside of the UEMOA and CEMAC zones.

Rwanda, picking itself up from the shortfall in(foreign) aid in 2012, grew its economy by 7.1%in 2014, 2.3 percentage points higher than in2013. GDP growth was essentially driven by theservices, agriculture, construction and industrialsectors.

As for Mauritania, GDP growth, it would appear,is solidly anchored as it stood at 6.7% in 2014,same level as in 2013, according to the IMF. Thisgrowth was driven by the extractive, services,agricultural production, construction and publicworks sectors.


ACTIVITIES DURING THE YEARCHAPITRE IV


The financial year 2014 evolved in an economic environment characterized by a sustained globaleconomic recovery but one which did not occur uniformly everywhere.

The consequences of previous socio-political crises in some member-States were reflected in thissituational context.

Internally, the institution’s activities evolved within the framework of the 2012-2015 four-year plan.In this regard and within the framework of the diversification of activities, the pursuit of the approvalsof direct loans in favor of projects in the member-States constituted the principal feature of activities.

Meetings of the Governing Organs

The Board of Governors, supreme organ ofthe Institution, held on 21 May 2014 in Kigali,an ordinary session chaired by Mr MohamedBOUCHA, Deputy Minister of Finance incharge of Budget of the Republic of Niger, inthe absence of the current Chairman.

The Board of Directors held two sessionsrespectively on 20 May and 15 December2014 under the chairmanship of Mr CyrilleHATEGEKIMANA, Adviser to the Secretary ofState for Economic Planning of the Republicof Rwanda.

During the sessions of May 2014, the governingbodies, amongst others, approved the report ofactivities and the financial statements for the year2013 and took the decision to raise the authorisedcapital of the Fund to three hundred and fifty billionCFA francs (350 000 MCFA francs).

The 41st ordinary session of the Board ofDirectors held on 15 December notably, adoptedthe 2015 budget, approved three direct loans of a

total amount of five billion three hundred millionCFA francs (5 300 MCFA francs), two guaranteefacilities for four billion five hundred million francs(4 500 MCFA francs), a complementary equityparticipation in the sum of fifty-seven millionfrancs (57 MCFA francs) and one interest-raterebate facility that paved the way for raisingtwenty-one billion three hundred and five millionfrancs (21 305 MCFA francs) of funding.Moreover, it authorized the signing of fourcooperation agreements with financial institutionsand international organizations.

4.1.

Meetings of the Governing Organs



Activities of the Managing Director’s Office

They revolved essentially around the continuation of the implementation of the 2012-2015 four-yearstrategic plan which focuses amongst others, on the consolidation of the Fund’s achievements and thedevelopment of the Institution’s operational activities.

4.2.1.- Administrative activities

4.2.1.1.- Organisation of the units

The current organisation chart, adopted by decision N° 05/36/CA/FAGACE/12 during the 36th sessionheld in Cotonou in June 2012 comprises, apart from the Managing Director’s (executive) office, three(3) technical departments, the other units attached to the Managing Director’s office and the RegionalRepresentative Office for Central Africa (RRAC).

The Managing Director’s office comprises :

the positions of Adviser to the Managing Director, Attaché to the Adviser, Internal Audit and•Management Control units, Cooperation and Communication, Private Secretariat of theManaging Director and the Board and Protocols Secretariat;Regional Representative Office. •

he technical departments comprise the Operations, Risks and Administration & Finance departments.

As of 31 December 2014, the payroll total stood at thirty-eight (38), of which thirty-two (32) werepermanent and six (6) were contract employees.

4.2.1.2.- Administrative and Information System Management

Administrative activities centered principally on the optimal management of material resources and thesafe-guard of the interests of the Institution.

The continuous training of the employees helped to strengthen the management control tools andtechniques as well as the management of a logistic and stock management service.

The refurbishing/retooling of the computer system was continued and strengthened both at the headoffice and at the Regional Representative Office in Central Africa with a view to getting a firm hold onthe Fund’s database.

4.2.2.- Legal Activities

During the year, legal activities dealt essentially with:

Implementing an intensive legal evaluation process for qualifying applications for the Fund’s•guarantee; in particular, a legal manual for projects was introducedDrafting legal documents: guarantee agreements, surety agreements, notarised deeds of•guarantee•Assisting with the clean-up and the drafting of statutory documents (statute andstaff regulations)Following-up the execution of the decisions of the Board of Directors and the Board of•Governors

4.2.



Participating in identification, prospecting and project evaluation missions as well as their•follow-upFollowing-up the recovery of the Fund’s financial claims particularly on Bank Austria. The•actions undertaken have forced the counterparty to make concessions. A proposal to pay2.5 million euros has been made by the Bank. This sum shall be shared among BDEAC, FSAand FAGACE.

4.2.3.- Operational activities

Operational activities covered principally theidentification and examination of new requests forfacility and the follow-up of projects guaranteed.

4.2.3.1.- Identification of projects

In 2014, the actions undertaken to identifyprojects yielded fifty-seven applications forfacilities.

Applications for guarantee and direct loan facilities The summary situation of the pipeline of projects as of 31 December 2014 stood as follows:

The amount of the loans requested indicates the existence of a real need for guarantee facilities for thefinancing of development projects in the member-States.

With regard to direct loans which clearly attract strong interest, most of the requests which werereceived were for medium- and long-term loans in the different sectors.

Applications for interest-rate rebates equity participation

Loans requested from banks amounted to 21.305 billion CFA francs while one application for equityparticipation was recorded.

Number ofprojects received

Cost of projects(‘000 CFA francs)

Loan requested(‘000 CFA francs)

Guaranteerequested

DIRECT LOANS 22 155 078 424 84 229 492

GUARANTEES 33 336 905 563 283 248 705 141 624 352

TOTAL 55 491 983 987 367 478 197 141 624 352


The summary of applications received is as follows:

CountryNumber of projects

receivedCost of

the project Loan requested(‘000 CFA francs)

Rebaterequested

Equity participationrequested

BENIN 01 27 462 115 21 305 000 271 612

ABREC (Sub-region)

01 - - - 57 000

TOTAL 02 21 305 000 271 612 57 000



4.2.3.2.- New approvals

Guarantee

During the year 2014, two applications forguarantee facilities, for a total amount of 4.5 billionCFA francs were approved. They relate to theMoulin Modern du Mali (M3SA) for theimplementation of the project of extension anddiversification of its activities in Mali (3.5 billionCFA francs) and to the guarantee of a medium-term loan to a micro-finance institution,ASUSU-SA, in Niger (1 billion CFA francs).

Thanks to the Fund, M3SA was able to raise 7billion CFA francs of loan funds from the WestAfrican Development Bank (BOAD) to implementits project and ASUSU-SA was able to raise 2billion CFA francs of funding from CORIS BANKINTERNATIONAL for the refinancing of loans

granted to (its) clients.

The low rate of approvals was due to the fact thatmany of the projects (proposed) were still at thepre-maturity stage.

Direct loans

5.3 billion francs in direct loans were approved.These approvals indicate the determination of theFund to implement the diversification of itsactivities as decided by the governing bodies in2013.

The projects approved were: a cement factory (GPOWER CEMENT), TRANSIMEX real estate projectand SUD BUILDING in Cameroun and Beninrespectively.

Interest-rate rebate

A new interest-rate rebate facility for an amount of 271.612 million CFA francs was approvedduring the year in respect of the electrification of 69 villages in Benin for which the loanamount was 21.305 billion CFA francs.

4.2.3.2.- Statement of facilities granted

Cumulative commitments were as follows:

- Guarantee

The cumulative gross guarantee facilities in the portfolio stood at 300.739 billion CFA francs as of 31December 2014 in favour of 217 projects distributed over 12 member-States.

4.2.3.3.1.


Distribution by Country

Country Number of Projects Guarantee(in millions of CFA FRANCS) %

BENIN 34 36 198 12.04

BURKINA FASO 21 23 271 7.74

CAMEROUN 13 23 930 7.96

CENTRAFRICA 6 7 580 2.52

CÔTE D'IVOIRE 59 86 808 28.86

GUINEA-BISSAU 1 4 500 1.50

MALI 9 12 317 4.10

MAURITANIA 1 532 0.18

NIGER 7 8 648 2.88

RWANDA 4 1 838 0.61

SENEGAL 44 57 782 19.21

TOGO 16 33 585 11.17

OTHERS 2 3 750 1.25

TOTAL 217 300 739 100.00


Répartition par pays

GUINEA-BISSAU1.50 %

MALI4.10 %

MAURITANIA0.18 %

NIGER2.88 %

RWANDA0.61%

SENEGAL19.21%

TOGO11.17%

OTHERS1.25%

BENIN12.04%

BURKINA FASO7.74%

CAMEROUN7.96%

CENTRAFRICA2.52%

CÔTE D’IVOIRE28.86%

Côte d’Ivoire and Senegal remain the principal beneficiaries of the Fund’s guarantee facilitieswith (proportional shares of) 28.86% and 19.21% of the cumulative gross commitments asof 31 December 2014.



Distribution by Sector of Activity

Sector Guarantee (in millions of CFA francs) %

Energy 41 125 13.67

Hospitality 2 004 0.67

Real Estate 20 650 6.87

Industry 49 678 16.52

Infrastructure 8 319 2.77

Fishing 2 883 0.96

Services 10 654 3.54

Telecommunications 60 723 20.19

Transport 1 434 0.48

Agro-industry 84 419 28.07

Commerce 8 160 2.71

Financial Services 7 566 2.52

Others 3 124 1.04

TOTAL 300 739 100.00


The sectoral distribution helps to identify the principal areas of activity in which the Fund’s facilities areconcentrated.


Transport0.48%

Services3.54% Fishing

0.96%

Infrastructure2.77%

Industry16.52%

Real Estate6.87%

Hospitality0.67%

Energy13.67%

Others1.04%Financial

2.52%

Commerce2.71%

Agro-industry28.07%

Telecommunications20.19%

Distribution by type of facility


FAGACE’s gross guarantee commitments are grouped around the principal activities comprising agro-industry (28.07%), telecommunications (20.19%), industry (16.52%) and energy (13.67%).

Medium- and long-term bank loans amounted to 157.822 billions CFA francs and represented morethan 52% of the cumultive guarantee amounts as of 31 December 2014.

As for guarantees to back-up bond issues, the cumulative commitments stood at 91.618 billion CFAfrancs, representing a rate of 30.46%, in favour of 33 projects.

- Direct lending

The cumulative direct lending activities of the Fund as of 31 December 2014, covered three (03) projects,one (01) of which is in Benin and two (02) in Cameroun for a total amount of 5.3 billion CFA francs

4.2.3.3.2.

Type Number ofProjects

Amount (in millions of CFA francs) %

Medium-/Long-Term Bank Loans 139 157 822 52.48Bond issues 33 91 618 30.46

Short-Term Bank Loans 42 48 299 16.06

Guarantee Lines 3 3 000 1.00TOTAL 217 300 739 100.00

CountryNumber of Projects Laon approved

(in millions of CFA francs)%

BENIN 01 800 15

CAMEROUN 02 4 500 85

TOTAL 03 5 300 100


Répartition par type de concours

Guarantee Lines1.00 %

Short-Term Bank Loans16.06 %

Medium-/Long-TermBank Loans52.48 %

Bond issues30.46 %



- Interest-rate rebate

Cumulative approvals of interest-rate rebate facilities stood at 8.987 billion CFA francs as of 31 December2014 in favour of 54 projects located in 10 member-States.

4.2.3.3.3.

Approbations en bonification cumulées par pays

Cumulative interest-rate rebate facility approvals by country

Country Number of Projects Rebate amount (in millions ofCFA francs)

%

BENIN 8 1 781 19.82

BURKINA FASO 10 1 666 18.54

CENTRAFRICA 1 158 1.76

CÔTE D'IVOIRE 1 197 2.19

MALI 2 238 2.65

MAURITANIA 1 492 5.47

NIGER 11 1 990 22.14

RWANDA 8 435 4.84

SENEGAL 8 1 554 17.29

TOGO 4 476 5.30

TOTAL 54 8 987 100

SENEGAL17.29 %

RWANDA4.84 %

NIGER22.14 % MAURITANIA

5.47 % MALI2.65 %

CÔTE D’IVOIRE2.19 %

CENTRAFRICA1.76 %

BURKINA FASO18.54 %

BENIN 19.82 %

TOGO 5.30 %


Niger, Burkina Faso and Benin were the principal beneficiaries of the interest-rate rebate facilities withshares of 22,14 %, 18,54 % et 19,82 %, respectively.

- Equity participation

Facilities in the form of equity participation stood at 1.435 billion CFA francs as of 31 December 2014,in favour of nine (09) projects seven (7) of which are regional. Equity participation facilities helped inraising 34.17813 billion CFA francs of capital funds in favour of the following entities :

4.2.3.3.3.

Distribution by beneficiary

Company Capital (MillionCFA francs)

Equity Participation

Amount(Million CFA francs)

As %of the capital

ASE 153.00 10 0.70

Cauris Investissement 5 000.00 225 15.68

Regional Stock Exchange (BRVM) 2 904.32 100 6.97

Central Depository / Settlement Bank (DC/BR) 1 461.52 50 3.48

SCIE-UEMOA 650.00 50 3.48

Atlantic Financial Group 20 000.00 500 34.84

SP-FAB/ ABREC 1 819.00 100 6.97

Fonds de Garantie Agricole du Rwanda 1 940.29 100 6.97

BRIC 250.00 300 20.91

TOTAL 34 178.13 1 435 100

- Loan-tenor extension

As of 31 December 2014, approvals of loan-tenor extension facilities stood at 976.8 million CFA francs,in respect of two (02) projects located in Niger (AHA Dembou) and in Senegal (SENELEC).

- Follow-up of projects

During the year 2014, the follow-up of projects continued to occupy a predominant position in thescheme of activities. It was carried out internally as well as externally.

Thus, the Fund maintained permanent contact with the promoters and lenders who have benefittedfrom its facilities. Particular emphasis was laid on the recovery of claims (assets) arising from guaranteecommissions, fixed term advances (FTA) and called guarantees. The outstanding guarantee amount asof 31 December 2014 stood at 23.600414 billion CFA francs.

4.2.3.3.4.

4.2.3.3.5.




4.2.4.- Cooperation and Communication

4.2.4.1.- Cooperation with member-States

Particular emphasis was laid on the strengtheningof contacts with the Authorities as well as theprivate sector to promote an enhanced visibility ofthe Fund. These contacts facilitated theencashment of past-due called capital. Moreover,the occasion of the visits made to some member-States provided the opportunity for theidentification of projects eligible for the Fund’sfacilities.

4.2.4.2.- Opening of the Fund’s capital

Actions regarding the opening of the Fund’s capitalcontinued. They were particularly oriented towardsEquatorial Guinea, Gabon, Democratic Republic ofCongo, Morocco and Burundi; discussions with allof them are at an advanced stage.

4.2.4.3.- Cooperation with FinancialInstitutions and Development Organisations

Relations with financial institutions anddevelopment organisations were strengthened, theprincipal objective being to obtain funding lines,co-financing of projects, equity participation ortechnical and/or financial assistance.

For most of the international financial institutionswith which contacts have been established, agradual approach to partnership was agreed upon:(i) the co-financing of projects identified by theFund was adopted as the first stage (ii) in thesecond phase, funding lines would be opened forthe Fund.

This approach was particularly preferred byinstitutions like EIB, FMO, BIO, Indian EximBank,EximBank of the USA, IDB. For the others such asEmerging Africa Infrastructure Fund (EAIF),GuarantCo, Chinese Development Bank, EximBankof China, EximBank of the USA , discussions are

on-going to better define the mode of cooperationto be developed.

Also, certain national and internationalorganisations were contacted with a view toestablishing solid partnerships with them. It wasin this regard that cooperation agreements weresigned with the Netherlands DevelopmentOrganisation (SNV) and Rwandan Private SectorFederation (PSF).

Moreover, operational activities continued to becarried out with the regional institutions notably,the BOAD, EBID, BDEAC, CREPMF, the RwandanDevelopment Bank (BRD) and commercial banks.

4.2.4.4.- Communication

With regard to communication, the actionsundertaken included the publicisation of thedecisions of the governing bodies, thecommunication to financial partners ofinformation on the financial and strategic evolutionof the Fund as well as the sensitization, throughthe mass media in the different countries, ofbusiness leaders about the Institution’s activities.

Emphasis was put on making the Fund’s websitelively, by the insertion of advertising spots, theupdating of communication materials, the annualreports, communication media in general andinformation about the FAGACE bond issue, inparticular.

FAGACE - SNV


4.2.5.- Activities of the RegionalRepresentative Office for Central Africa

During the year, the activities of the RegionalRepresentative Office for Central Africa covered thefollow-up of the GSA, Biopharma and TelecelCentrafrica loan facilities, the identification of new

projects in the CEMAC zone, the continuation of theprocess of obtaining head-office agreement,participation in round-table conferences andcolloquiums to which the Fund was invited.

4.2.6.- Financial situation

As in the previous years, the 2014 financial year yielded a (net) profit of 385 343 437 FCFA which isexplained by the interplay of several factors notably:

The reorganistion efforts led by the Management and which produced a (tighter) control of•the operating expenses of the InstitutionThe continuation of the clean-up of the accounts by way of efforts in safeguarding the•commitments of the FundThe improvement in the level of financial incomes.•

The summary of the financial statements for the period (mentioned above) is as follows :

4.2.6.1.- Balance sheet and income statements

- Balance sheet

Balance sheet total as of 31 December 2014 stood at 32 621 417 213 CFA francs compared to 22 763545 171 CFA francs in 2013, representing a change of 43% and analysed as follows :

4.2.6.1.1.


Assets

The assets of the Fund as of 31 December 2014 were as shown in the table below (in CFA francs):ITEM 2014 2013 Change (%)Interbank placements/loans 19 180 867 873 9 798 215 759 96%Marketable securities 832 826 582 1 237 137 366 1%Other assets and operations with clients 8 218 857 445 8 146 685 761 -33%Fixed Financial Assets 2 181 701 747 1 803 542 446 23%Tangible and Intangible Assets 2 207 163 566 1 777 963 839 21%TOTAL 32 621 417 213 22 763 545 171 43%



Interbank placements/loans

Interbank placements or loans relate to term deposits and current/sight accounts (maintained withbanks). They amounted to 19 180 867 873 CFA francs in 2014, compared to 9 798 215 759 CFA francsin 2013 reflecting an increase of 96%, by virtue of the efforts that yielded a partial recovery of called-incapital (3 588 093 646 CFA francs), mobilisation of resources (6 967 770 000 CFA francs) and debtrecovery (1 173 211 531 CFA francs).

Marketable securities

Marketable securities comprise bonds and equity stocks (shares). This line decreased by 33% duringthe period by reason of the re-classification of stocks as investment securities, for an amount of 443440 783 CFA francs. They stood at 832 826 582 CFA francs en 2014 compared to 1 237 137 366 CFAfrancs in 2013.

Other assets and operations with clients

Other assets and operations with clients comprise of sundry debtors, operations with clients andsuspense asset accounts. This line remained virtually unchanged during the year 2014 and stood at 8 218 857 445 CFA francs.

Fixed financial assets and guarantee deposits

Fixed financial assets and guarantee deposits rose 21% during the period by reason of the inclusion ininvestment securities, of stocks initially recorded as marketable securities, in the amount of 443 440783 CFA francs. They stood at 2 181 701 747 CFA francs as of 31 December 2014.

Guarantee deposits represent sums deposited as subscription guarantees with certain utility companies(SBEE, SONEB, etc.). This line was unchanged during the period and remained at 7 148 427 CFA francs.

Tangible and Intangible assets

They comprise intangible assets (studies and research expenditures) and tangible assets (land andbuildings, etc.). They stood at 2 207 163 566 CFA francs in 2014 compared to 1 777 963 839 CFA francsin 2013, representing an increase of 24%.


The liabilities of the Fund, as of 31 December 2014, were as shown hereunder (in CFA francs):

ITEM 2014 2013 Change (%)

Interbank borrowings 7 274 003 315 0 -

Securities issued and sundry operations 4 252 386 899 4 242 519 639 0%

Grants and other funds received 100 000 000 100 000 000 0%

Provisions for risks and charges 5 348 776 003 5 673 911 276 -6%Share premium 887 500 000 887 500 000 0%Reserves 2 063 462 066 2 063 462 066 0%Revaluation difference 1 274 258 488 2 348 558 831 -46%

Capital and endowments 29 387 897 104 25 799 803 458 14%

Retained earnings -18 352 210 099 -19 423 695 754 -6%

Net income 385 343 437 1 071 485 655 -64%


Liabilities

Interbank borrowings

These cover principally the bank facilities obtained by the Fund from BSIC BENIN for the extension ofthe head-office building and funds received from the FAGACE 5.25%, 2014-2019 bond-issue. Interbankborrowings stood at 7 274 003 315 CFA francs as of 31 December 2014.

Securities issued and sundry transactions

This line comprises debts (due) to clients (sundry creditors) as well as sundry liabilities. Securitiesissued and sundry transactions remained virtually unchanged during the period, at 4 235 136 899 CFAfrancs.

Debts due to clients

Also described as sundry creditors, debts due to clients relate to third-party deposits (CNSS) receivedin the course of intermediation operations; they stood at 2 684 621 694 CFA francs in 2014.

Sundry liabilities

Sundry liability accounts comprise of interests and honorariums to be paid. They stood at 1 550 515205 CFA francs in 2014, compared to 1 402 227 248 CFA FRANCS in 2013, representing an increase of11% by reason of the financing expenses to be paid on intermediation activities.



Provisions for risks and charges

These cover provisions against risks and provisions for (employee) separation allowances. They droppedto 5 348 776 003 CFA francs in 2014 compared to 5 673 911 276 CFA francs in 2013, reflecting adecrease of 6%, by reason of the write-back of provisions set aside following the disengagement of twoemployees.

Equity funds

Equity funds comprise the capital, share premiums, reserves, revaluation difference, retained earningsand the net income for the year.

The movements in the networth over the last two years were as shown hereunder:Item 2014 2013 Change (%)Net income for the year 385 343 437 1 071 485 655 -64%Revaluation difference 1 274 258 488 2 348 558 831 -46%Retained earnings -18 352 210 099 -19 423 695 754 -6%Reserves 2 063 462 066 2 063 462 066 0%Share premium 887 500 000 887 500 000 0%Called Capital, paid 29 387 897 104 25 799 803 458 14%Called Capital, unpaid 29 294 003 010 9 929 096 656 195%Net-worth 15 646 250 996 12 666 639 342 23%Equity Funds 44 585 853 892 22 595 736 498 99%

Equity funds increased by 99%, rising to 44 859 779 592 CFA francs in 2014 compared to 22 595 736 498 CFA francs in 2013 by reason of the profits earned from one year to the other and thecall-up of a tranche of the capital in the amount of 22 953 000 000 CFA francs during the period.

As for the net-worth, an improvement of 23%, that is, in the amount of 15 646 250 996 CFA francs, wasnoted as of 31 December 2014 compared to 12 666 639 842 CFA francs as of 31 December 2013. Thisincrease was due essentially to the payments of called capital and to the net profits recorded over thetwo financial years.

Off-balance sheet commitments

Commitments issued stood at 23 600 414 000 CFA francs in 2014, compared to 28 002 450 000 CFAfrancs in 2013; they relate to projects guaranteed in the member-States. This decrease was due to thereduction in the outstanding guarantee amount following repayments made by project-promotersguaranteed and new approvals against which the loans have not yet been disbursed.

- Income Statement

The year 2014 recorded a net income 385 343 437 CFA francs compared to a (net) profit of 1 071 485655 CFA francs in 2013.

4.2.6.1.2..


The income statement calls for the following comments:

Incomes from banking operations comprise incomes from marketable securities and treasury operations,incomes from off-balance sheet operations and other banking incomes. They remained virtuallyunchanged during the period and stood at 1 302 975 002 CFA francs in 2014.

Incomes from treasury operations and marketable securities comprise interests from•placements with banking institutions and incomes received from the purchase (subscription)of marketable securities. This line rose by 38% in 2014 representing an amount of 708 258757 CFA francs compared to 2 514 361 481 CFA FRANCS in 2013.

On the other hand, incomes from guarantee operations fell over the last three years. They•fell by 2% to 542 449 095 CFA francs in 2014 compared to 554 400 020 CFA francs in 2013due to the decrease in the outstanding guarantee amount.

Thanks to the re-taking of the stock-count, to the identification of fixed assets and to the•computerization of the real estate assets of the Fund, the year 2014 recorded a net write-back of depreciations in the amount of 1 346 704 821 CFA francs.

Exceptional incomes and profit from previous years fell by 45%, falling to 206 365 653 CFA francs asof 31 December 2014 compared to 374 742 613 CFA francs as of 31 December 2013.

Expenses

The year 2014 witnessed a general reduction of the order of 18% in expenses which stood at 2 550 464070 CFA francs in 2014 compared to 3 104 099 601 CFA francs in 2013.

Details of the income and expense accounts were as follows:

ITEM 2014 2013 Change (%)

INCOMES FROM BANKING OPERATIONS 1 302 975 002 1 251 070 967 4%

Incomes from cash and marketable securities transactions 708 258 757 514 361 481 38%

Incomes from off-balance sheet transactions 542 449 095 554 400 020 -2%

Other incomes from banking operations 52 267 150 182 309 466 -71%

Write-back of provisions for depreciation and charges 1 376 801 656 2 549 771 676 -46%

Exceptional incomes and profits from previous years 206 365 653 374 742 613 -45%

Total incomes 2 886 142 311 4 175 585 256 -31%


Incomes


Expenses include expenses on banking operations, personnel costs, other overhead expenses andprovision for depreciation.

Banking operations expenses comprise expenses in respect of treasury operations and financial services.They remained practically stable (-1%) during the period and amounted to 172 396 929 CFA francs in2014 compared 174 499 092 CFA francs in 2013.

Other overhead expenses rose 4% during the period and totalled 1 106 946 579 CFA francs en 2014,compared to 1 062 544 041 CFA francs in 2013.

Personnel costs fell during the period, totalling 783 563 107 CFA francs in 2014 compared to 790 445786 CFA francs in 2013.

Provision for depreciation relates to the Fund’s fixed assets. It stood at 261 925 880 CFA francs as of31 December 2014, compared to 262 552 084 CFA francs as of 31 December 2013.

Provision for risks and charges in its own case fell by 83% during the period, amounting to 110 868627 CFA francs in 2014 compared to 663 462 783 CFA francs at the end of 2013 and comprised:provision for separation allowances and for annual leave allowances due in the amount of 60 868 627CFA francs and provision of 50 000 000 CFA francs against the shares held in SCIE.

Exceptional charges and losses in respect of previous years fell by 97%, to 3 004 511 CFA francs as of31 December 2014 compared to 89 641 434 CFA FRANCS as of 31 December 2013.

Taken together, as described in the foregoing, the year 2014 produced a net profit of 385 343 437 CFAfrancs compared to 1 071 485 655 CFA francs recorded in 2013.


Details of the expenses for the year were as shown below:

ITEM 2014 2013 Change (%)EXPENSES ON BANKING OPERATIONS 172 396 929 174 499 092 -1%Expenses on treasury operations and marketablesecurities

162 728 804 170 548 725 -5%

Expenses on delivery of financial services 9 668 125 3 950 367 145%Purchases and change in inventory 62 093 241 60 954 381 2%Personnel expenses 783 563 107 790 445 786 -1%Other overhead expenses 1 106 946 579 1 062 544 041 4%Provision for depreciation and amortisation 372 794 507 926 014 867 -60%Exceptional charges 3 004 511 89 641 434 -97%Total expenses 2 500 798 874 3 104 099 601 -19%Net income for the year 385 343 437 1 071 485 655 -64%


4.2.6.2.- Internal and external audits

- Internal audit

Internal audit and management control activities covered the entire operations, in accordance with theprovisions of the statutes and generally accepted standards.

During the year 2014, management control activities dealt essentially with the follow-up and control ofbudget implementation: preparation of key (operating) data sheet, quarterly follow-up of the keymanagement data sheet, implementation of management accounting, preparation of budget for yearN+1 and the oversight of the physical stock-count.

Internal audit activities dealt mainly with the follow-up of the recommendations of the auditors, thepreparation of the key operating management data sheet, proofing of the internal control system,anticipatory management, rigorous and regular follow-up of budget execution and the implementationof the information system.

- External Auditors

The audit firms SOFIREX and Synergie Experts-Consultants, audited the accounts and the internal controlsystem. At the end of their audit mission, they certified the accounts as accurate and fair.

4.2.6.2.2.

4.2.6.2.1.



VANNEXURE

Organisation Chart

Balance Sheet and Income Statement as of 31/12/14

5.2.1.- Balance Sheet as of 31/12/14

5.2.2.- Income Statement as of 31/12/14

Report of the Auditors

5.1.

5.2.

5.3.




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Organisation Chart5.1.

5.2.1.- BALANCE SHEET AS OF 31 DECEMBER 2014

ASSETS FY 2014 FY 2013

ITEM AMOUNTS (NET)

1- TREASURY AND INTERBANK OPERATIONS 19 180 867 873 9 798 215 759

10- CASH 300 000 212 470

11- BANKS AND CORRESPONDENTS 7 050 567 873 2 598 003 289

12- OTHER DEPOSIT ACCOUNTS WITH BANKS 12 130 000 000 7 200 000 000

2- OPERATIONS WITH CUSTOMERS 222 990 321 155 274 411

20- LOANS TO CLIENTS 222 990 321 155 274 411

29- NON-PERFORMING LOANS 0 0

3-PLACEMENTS AND SUNDRY OPERATIONS 8 828 693 706 9 228 548 716

30- INVESTMENT SECURITIES 832 826 582 1 237 137 366

33- SUNDRY DEBTORS 7 765 573 698 7 807 495 460

37- TRANSITORY AND HOLDING ACCOUNTS 0 0

38- SUSPENSE ACCOUNTS (ASSETS) 230 293 426 183 915 890

39- INTERMEDIATE ACCOUNTS - -

4- FIXED FINANCIAL ASSETS ACCOUNT 4 388 865 313 3 581 506 285

41- FIXED FINANCIAL ASSETS 2 174 553 320 1 796 394 019

42- DEPOSITS AND BONDS 7 148 427 7 148 427

44- TANGIBLE AND INTANGIBLE FIXED ASSETS 2 207 163 566 1777 963 839

TOTAL 2 207 163 566 1 777 963 839

5.2. Balance Sheet and Income Statement as of 31/12/14


LIABILITIES FY 2014 FY 2013

ITEM AMOUNTS (NET)

1. TREASURY AND INTERBANK OPERATIONS 7 274 003 315 0

17- DEBTS AND OTHER SUMS DUE TO BANKS 7 274 003 315 0

2. OPERATIONS WITH CUSTOMERS 17 250 000 17 250 000

25- CUSTOMER ACCOUNTS 17 250 000 17 250 000

3. SECURITIES ISSUED AND SUNDRY OPERATIONS 4 235 136 899 4 225 269 630

33- SUNDRY CREDITORS 2 684 621 694 2 823 042 391

38- SUSPENSE ACCOUNTS (LIABILITIES) 1 550 515 205 1 402 227 248

5. PROVISION, EQUITY AND SIMILAR FUNDS 21 095 026 999 18 521 025 532

51- PROVISION FOR RISKS AND CHARGES 5 348 776 003 5 673 911 276

55- SHARE PREMIUMS AND RESERVES 4 225 220 554 5 299 520 897

57- CAPITAL AND GRANTS 29 387 897 104 25 799 803 458

58- RETAINED EARNINGS -18 352 210 0099 -19 423 695 754

NET RESULT FOR THE YEAR (PROFIT) 385 343 437 1 071 485 655

TOTAL 32 621 417 213 22 763 545 171


EXPENSES FY 2014 FY 2013

ITEM AMOUNTS

60- EXPENSES INCURRED ON BANKING OPERATIONS 172 396 929 174 499 092

601- Expenses on treasury and interbank operations 162 728 804 168 670 036

603- Expenses on securities issued and sundry operations 0 1 878 689

606- Foreign exchange expenses - -

608- Expenses on financial advisory services 9 668 125 3 950 367

609- Other banking charges - -

61- PURCHASES AND STOCK VARIATIONS 62 093 241 60 954 381

Achats 62 093 241 60 954 381

62- OTHER EXTERNAL CHARGES AND SUNDRY OPERATING EXPENSES 1 106 946 579 1 062 544 041

64- PERSONNEL EXPENSES 783 563 107 790 445 786

641- Salaries and allowances 783 563 107 790 445 786

66- PROVISION FOR AMORTISATION AND LOAN LOSSES 372 794 507 926 014 867

661- Provision for depreciation of assets 311 925 880 262 552 084

667- Provision for risks and charges 50 000 000 663 462 783

67- EXCEPTIONAL CHARGES AND LOSSES IN RESPECT OF 3 004 511 89 641 434

671- Exceptional charges 0 0

672- Losses in respect of previous financial years 3 004 511 89 641 434

RESULT FOR THE YEAR 385 343 437 1 071 485 655

TOTAL 2 500 798 874 3 104 099 601


5.2.2.- INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014


INCOMES FY 2014 FY 2013

ITEM AMOUNTS

70- INCOMES FROM BANKING OPERATIONS 1 302 975 002 1 251 070 967

701- Incomes from treasury and interbank operations 598 164 724 374 355 755

702- Gain on securities and various transactions 65 094 033 95 005 726

703- Gain on fixed assets 45 000 000 45 000 000

707- Incomes from off-balance sheet operations 542 449 095 554 400 020

709- Other incomes from banking operations 52 267 150 182 309 466

76- WRITE-BACK OF AMORTISATION, PROVISION AND RECOVERY OF DOUBTFUL LOANS

1 376 801 656 2 549 771 676

761- Write-back of amortisation of fixed assets 1 346 704 821 0

767- Write-back of provisions for risks and charges 30 096 835 2 549 771 676

77- EXCEPTIONAL INCOMES AND PROFIT FROM PREVIOUS YEARS 206 365 653 374 742 613

771- Exceptional incomes 171 198 391 209 897 119

772- Profits from previous years 35 167 262 164 845 494

TOTAL 2 886 142 311 4 175 585 256

I – GENERAL REPORT OF THE AUDITORSFINANCIAL YEAR ENDED 31 DECEMBER 2014

Mister Chairman of the Board of Governors of FAGACE,Messrs Governors,

In execution of the mission entrusted to us by the Board of Governors and in accordance with Article 29 paragraph2 of the “Financial Regulations”, we have the honour to present to you, our report on :

The audit of the summary financial statements of the African Guarantee And Economic Cooperation•Fund (FAGACE) as attached to this report as well as the verification of the conformity of theaccounting with existing laws and regulations

The specific verifications and information stipulated by law, with respect to the financial year ended•31 December 2014.

The accounts have been prepared by the Management.Our responsibility is to express, on the basis of our audit, an opinion on these summary financialstatements.

1.1 Opinion on the summary financial statements

We have carried out our audit in accordance with international standards; these standards require thecarrying out of due diligence giving reasonable assurance that the summary financial statements do notcontain material errors. An audit consists of examining on a sample basis, material items justifying thedata contained in these accounts. It also consists of evaluating the accounting principles adopted andthe material estimates used in preparing the accounts as well as their general presentation. We believethat our examinations provide a reasonable basis for the opinion expressed hereafter :

We certify that the summary financial statements are, based on accounting rules and principles as wellas the provisions of the “Financial Regulations”, regular and fair and give a true image of the result ofoperations for the year ended as well as the financial situation and patrimony of the African GuaranteeAnd Economic Cooperation Fund as of 31 December 2014.

1.2 Specific Verification and information

We have also carried out, in accordance with the standards of the profession, the specific verificationsrequired by law.We do not have any observations to make on the fairness and agreement of the financial statementswith the information contained in the report of the Management and in the documents sent to theMembers of the board of Directors and the Board of Governors on the financial situation and the financialstatements of the Fund as of 31 December 2014.

Cotonou, April 29th, 2015

SOFIREX, Accounting Firm

Mamadou DIEYE

SYECA, Accounting Firm

Brice KOM’KO

Report of the Auditors 5.3.

UNE INSTITUTION FINANCIÈRE INTERNATIONALE AU SERVICE DU DÉVELOPPEMENT EN AFRIQUE FAGACE

41RAPPORT ANNUEL- 2014 / FAGACE/2015

FAGACEAN INTERNATIONAL FINANCIAL INSTITUTION FOR DEVELOPMENT IN AFRICAHead-office Regional Representative Office for Central Africa : Regional Representative Office for RWANDA:

298, CEN-SAD Road 12 044 Street,Cotonou- BENIN01 Po Box 2045 COTONOU (BENIN)

: (+229) 21 30 03 76/21 30 08 77Fax : (+229) 21 30 02 84E-mail : [email protected]

: [email protected]

CNPS Building, 4th Floor, Bonanjo,Douala - CAMEROUN

: (+237) 233 43 75 41Fax : (+237) 233 45 01 61 E-mail : [email protected]

: [email protected]

Rwanda Social Security Board (RSSB),TOWER B. KIYOVU, KIGALI, 4th floor

: 00250 781 074 031: 00250 788 313 889

E-mail : [email protected]


ANNUAL REPORTOMNQ

FAGACE


FAGACE

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