The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently announced that it signed an agreement with Banque de L’Habitat du Burkina Faso (BHBF) through which IFC will purchase a 15-percent stake in BHBF for USD 600,000 to support housing finance. IFC will purchase the stake from the government of Burkina Faso, which holds a 40-percent stake in the bank in advance of the transaction. In addition to the financial investment, IFC will also provide advisory services related to risk management, mortgage and property finance. Pierre Zerbo, CEO of BHBF, expressed optimism for the program saying, “The partnership between IFC and BHBF will be fruitful for both institutions, as it will expand access to housing for a large majority of Burkinabes.”
In September 2009, IFC launched a program intended to create a sustainable mortgage market in Burkina Faso. Financial information for BHBF is not available. BHBF does not report to the Microfinance Information Exchange (MIX), the US-based data provider. There is no website available for the bank.
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent, total investment mobilization of USD 18.4 billion and 528 projects.
About Banque de L’Habitat du Burkina Faso (BHBF): BHBF was created by the government of Burkina Faso in 2006 to support the development of the housing sector and to strengthen the mortgage market in Burkina Faso. The bank holds a universal banking license with its headquarters based in Ouagadougou. The major shareholders of BHBF include the following: The government of Burkina Faso with a 40-percent stake; Banque de L’Habitat de Tunisie, its technical partner, which holds a 12-percent stake; West African Development Bank, which holds a 10-percent stake; and an unspecified local insurance company that holds a 10-percent stake. The stated goal of the government of Burkina Faso is to progressively decrease its stake in BHBF over time. In 2011, the International Finance Corporation (IFC) agreed to purchase a 15-percent stake in BHBF. Financial information for BHBF is not available. BHBF does not report to the Microfinance Information Exchange (MIX), the US-based data provider. There is no website available for the bank.
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “IFC Invests in Banque de L’Habitat du Burkina Faso to Improve Access to Housing Finance”, March 25, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=A5B26639475910A58525785E0065704F
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital’s Microfinance Universe Profile: Banque de L’Habitat du Burkina Faso
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