SPECIAL FEATURE
PRIVATE SECTOR
understood that a private sector lending o ffi cer needed a di ff erent approach from a public sector counterpart. It is worth mentioning that the Public Sector Department has always been very supportive of private sector operations, especially in the early days, for example in getting the AEPI framework agreements in place. OFQ : How did the OPEC Fund progress? MB: The first transaction that I got involved in was an investment in Mauritania Leasing. We put in US$500,000 as an equity investment for a 10-percent stake and added a US$2.5 million loan to go with it. It was an example of how successful and important the OPEC Fund could be, because Mauritania Leasing was the first private sector leasing company in Mauritania and became incredibly successful. We built up our expertise and working practices as we progressed in executing projects. Out of this we developed our operations manual which was tailored to our goals and requirements. OFQ : How do you see the impact of the OPEC Fund’s new strategic direction and the tapping of the capital market on its private sector operations? MB: I’ve always been in favor of the debt program and it has not disappointed. It really put the OPEC Fund on the map of investors around the world. The inaugural bond has raised the institution’s profile, which is important for member and partner countries alike. At the same time, the scrutiny of the rating agencies will have an impact on lending operations as they monitor the portfolio risk. This has to be balanced with the OPEC Fund’s development mandate. OFQ : Why should an investor, who wants to work in one of the least developed countries (LDC) take out a loan with the OPEC Fund? MB: First of all, project finance in these countries is going to be quite di ffi cult to get. I don’t know if private banks would do it and if so, perhaps not longer than two or three years. But where are you going to get a tenor of 15 years for a Least Developed Country loan? You’re going to have to work with DFIs like
Banque Populaire de Mauritanie
Country: Mauritania Type: Financial Institution & Equity First transaction: 1999 The partnership began in 1999 when the OPEC Fund became a founding shareholder in Mauritanie Leasing, the predecessor to Banque Populaire de Mauritanie (BPM). Following the successful introduction of leasing operations, BPM has since evolved into a universal bank focusing predominantly on SME financing. To date, the OPEC Fund has approved four lines of credit to BPM for on- lending to SMEs,
Our bank’s vision is to promote accessible banking services and financial inclusion in Mauritania. We are proud to be pioneers of digital banking in Mauritania, o ff ering innovative services that have attracted hundreds of thousands of new customers. Our commitment to modernization and high- quality banking has set us ahead in the industry. With a focus on digital advancements, we have transformed the banking experience for our customers. The OPEC Fund witnessed and supported our successful transformation over the last 25 years. At BPM we are proud to be partners with the OPEC Fund and highly appreciate its contribution to
supporting the development of new businesses and helping to create over 25,000 permanent jobs.
OPEC Fund total commitment: US$13 million Implementation Status: Completed
financing the Mauritanian private sector investment over the two last decades.
Limam Ebnou, Chief Executive O ffi cer, BPM
Photo: Senderistas/ Shutterstock
should the OPEC Fund do next in the private sector? Should it be business as usual or do you advocate a more aggressive approach? MB: I think the OPEC Fund Private Sector Department is punching above its weight and really doing well. You’ve turned being a relatively small institution into a big advantage as it allows you to act flexibly and support partners to bridge gaps in development funding.
the OPEC Fund. I know a lot of people who say, we love working with the OPEC Fund because we have found you to be a very flexible institution. You’re one of the best institutions to work with. The OPEC Fund has gained a good reputation for being professional, responsive and cooperative.
OFQ : High praise indeed. Building on the success of the past 25 years, what
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