Burkina Faso/Bank of Africa: Equity increased from 2.2 billion CFA francs to 44 billion CFA francs

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The shareholders of Bank of Africa (BOA) held an extraordinary general meeting on August 13, 2024. The meeting made three decisions, the most important of which was to increase the bank’s share capital. This figure went from $2.2 billion to $44 billion, making BOA the largest bank in Burkina Faso by capital.

The Extraordinary General Meeting of Shareholders held today (August 13, 2024) was chaired by the Chairman of the Board of Directors, Lassiné Diawara. They convened 85% of the shareholders and decided and approved the increase in the bank’s share capital, the amendment of Articles 6 and 7 of the Articles of Association and the provision of inspection procedures for them.

*Lassiné Diawara, Chairman of the Board of Directors of BOA*

Regarding the first point, which concerns the increase in share capital, the shareholders unanimously decided to increase the share capital from 2.2 billion FCFA to 44 billion FCFA. The increase in capital will therefore be made through the inclusion of a premium related to capital and part of the optional reserve, without the need for cash contributions. In fact, 22 million new shares will be issued, each with a par value of 1,000 FCFA and will be distributed to shareholders free of charge on the basis of one new share for one old share.

The increase in the bank’s capital led in turn to the amendment of Articles 6 and 7 of the bank’s Articles of Association. Article 6, as amended, provides that the total share capital is 44 billion CFA francs, fully paid up. Article 7 provides that the share capital is divided into 44 million shares, each with a par value of 1,000 FCFA. The Extraordinary General Meeting also granted the Director General and the Deputy Director General the power to adopt and sign all bills, complete all formalities and take all necessary measures to incorporate statutory amendments.

For Christian Zongo, BOA’s deputy general manager for operations, the increase in equity reflects a certain strength of the bank. With an old equity of 22 billion, the ADB has exceeded the 20 billion required by the BCEAO. “When we increase capital in this way, we will increase our ability to support the economy. We will significantly increase our financing capacity for important sectors of the economy,” he said.

*Christian Zongo, Deputy General Manager for Operations at BOA*

This increase in share capital also made BOA shareholders happy. Shareholder Loloma-Hie Annonciata Kaboré expressed satisfaction with the decision, which also doubled the shareholders’ shares and dividends.