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A DOCUMENT ON THE MANAGEMENT MECHANISM OF INVESTMENT FUNDS UNDER DEVELOPMENT

The closing of the Cashew Development Support Project in the Comoé Basin for the Reduction of Emissions from Deforestation and Forest Degradation (PADA/REDD+) is scheduled for December 31, 2024. To do this, a mechanism should be put in place to ensure, after the closing of the project, the sustainability of the financing, the monitoring of the recovery of the loans that were granted to the promoters and the management of the working capital and the funds that will be recovered.

It is in this sense that the Ministry of Environment, Water and Sanitation (MEEA) has set up a Technical Committee to reflect on the mechanism for managing working capital and investments that were intended to finance stakeholders in the cashew sector in the project intervention area. The said Committee began its work on October 28, 2024 in Koudougou, during a workshop chaired by Delwendé Davy NANEMA, Director General of the Environmental Intervention Fund (FIE). According to him, the objective sought is to develop a document on the management mechanism for investment funds after the closure of PADA/REDD+.

Specifically, the members of the Committee are responsible for defining the mechanism for the transfer and management of credit funds (working capital and investment funds) to the MEEA; defining the procedures for creating the dedicated account at the level of the umbrella organizations of the credit unions; and developing the draft order for the establishment of the investment fund repayment monitoring committee until the repayment deadline.

The Reflection Committee will also have to develop the draft order for the establishment of the monitoring and management committee for working capital to continue financing promoters of the cashew nut sector; establish an agenda for the operationalization of credit funds by the FIE and transmit to the team of the African Development Bank (AfDB), the mechanism for managing investment funds after the closure of the PADA/REDD+ project.

The methodology adopted by the committee is based on plenary sessions and working sessions in the room to develop the various documents. It will involve thinking about an appropriate mechanism for managing funds by the FIE, the financial structure of the MEEA. The participants in the work are executives from the Ministry of the Environment and those of Finance.

It should be noted that as part of the implementation of the project, the FIE benefited from support for its accreditation with the Green Climate Fund for its transformation into an investment structure.

As a reminder, within the framework of cooperation between Burkina Faso and the AfDB, the MEEA benefited from technical and financial support from the AfDB for the implementation of the PADA/REDD+ project for the period 2017 - 2024.

DCRP/FIE