Sahel states move to launch a regional investment ...

Sahel states move to launch a regional investment bank—details firming up, lending rate rumors unconfirmed

ZimNow Business Desk

The military-led governments of Mali, Niger, and Burkina Faso say they are creating a joint investment bank under the Alliance of Sahel States (AES) to fund infrastructure and strategic projects without relying primarily on Western donors. The initiative follows the AES confederation push and signals a deeper economic pivot after the trio’s break with ECOWAS.

Announcements from late July to early August point to an institution intended to finance mining, energy, agriculture, and transport projects and to boost economic self-reliance across the bloc. Regional and Gulf business wires reported the launch step, with further statutes and governance details still to be published.

Reporting from Bloomberg and other sources says each country will contribute around 5% of annual tax revenues to the lender—a notable attempt to ring-fence domestic resources for development. Formal documentation on the exact capital structure is not yet public.

A viral claim says the bank will issue loans at 0.75% per annum to “creative and business‑minded individuals.” No reputable source has confirmed any such fixed lending rate, and officials have not published pricing frameworks. For now, treat the 0.75% number as social‑media speculation.

While the AES is distancing itself politically from ECOWAS, economic reporting suggests it may maintain practical links with regional development finance, rather than cutting ties—there is no official position diminishing engagement with the African Development Bank (AfDB).

Capital scarcity workaround: If capitalized as reported, the bank could speed project finance in fragile Sahel markets—a test case for home‑funded DFIs on the continent and set lessons on domestic revenue earmarking for long‑term capital.

The move dovetails with the AES’ broader strategic realignment and desire for financing autonomy—part of a wider African conversation on de‑risking donor dependence.