Greater efficiency through digital transformation in West Africa: KfW supports digitalisation of government administration

• EUR 16.2 million for digital transformation funds in West Africa
• New and secure IT structures, automation of administrative processes
• Administrative costs set to be reduced and government revenue increased
• Better and more equal access to government services for poorer sections of the population

On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW today signed a financing agreement with the West African Development Bank BOAD (Banque Ouest Africaine de Développement) for EUR 16.2 million for the Digital Transformation Fund in West Africa (Phase 1). The German financing means that BOAD loan funds can be subsidised and passed on to the administrations of the eight member states of the West African Economic and Monetary Union (Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo) at attractive conditions. There, they will be used for the digital transformation of administrative structures. In addition, the digitalisation of BOAD’s in-house banking processes is to be promoted. The aim is to automate administrative processes using newer and more secure IT structures, reduce the costs of public administrative procedures and increase public revenue. This can be achieved, among other things, by digitalising tax administration and reporting, paying teachers by mobile phone, setting up online portals for foreign investors and networking authorities internally and externally through compatible systems. The Digital Transformation Fund complements KfW’s numerous bilateral digital projects in its partner countries in West Africa.

"The digitalisation of administration offers poor countries significant opportunities to increase government performance and can enable poorer sections of the population in particular to have better and more equal access to government services. In addition, automated procedures can make a significant contribution to reducing corruption, improving transparency, and in so doing also increasing government accountability towards its citizens. There are also positive effects on economic growth and the investment climate," said Christiane Laibach, Member of the Executive Board of KfW Group.

The project’s regional approach and management via the BOAD in particular enable knowledge to be exchanged across national borders, as countries will sooner or later face similar challenges and needs in the digitalisation of their administration and profit from the learning experiences of others in relation to the digitalisation of more advanced countries.
KfW will provide the funds, which total EUR 16.2 million. The BOAD will contribute an additional EUR 20.3 million from market funds.

Further information about KfW Development Bank is available at:
www.kfw-entwicklungsbank.de

A photo can be accessed in the KfW photo archive at the following link:
https://bildarchiv.kfw.de/index.jsp?doi=kfw-dam-47768