Ladies and gentlemen,

The twelfth financial year of the GARI Fund ended on 31 December 2007.

In 2007, the global economic environment was marked by the strong appreciation of the Euro against the dollar, crisis of the USA real estate market as well as the persistent rise in the price of crude oil with its negative repercussions on the prices of common consumer goods.

In this hardly favourable context, the global economy resisted rather well by maintaining its dynamic activity, due namely to a strong demand from countries like China, India, Brazil and Russia. Thus global economic growth settled at 4.9% in 2007 compared to 5.1% in 2006.

On the African continent, the slight improvement observed in 2006 continued with an economic growth rate of about 6% in 2007 against 5.4%, due mainly to strong economic expansion in oil exporting countries.

In West Africa, the growth rate almost stagnated in 2007, settling at 3.5% compared to 3.8% in 2006. Economic activity recorded strong disruptions characterized by electrical energy supply difficulties that persisted in most of the countries in the region.

In spite of this relatively difficult economic context, the activities of the GARI Fund maintained a steady rate. The two major projects started in 2006 were completed during the 2007 financial year: the organizational review exercise made it possible to improve and enhance procedures as well as the information system; and the Fund’s marketing plan began its implementation phase in accordance with the main orientations initially retained.

The objective of the marketing plan, whose main component is the organization of information and sensitization fora on GARI’s mechanism throughout the countries covered by the Fund, is to strengthen the presence of our Institution in its coverage zone. Eight countries have hosted these fora during the first phase, namely Benin, Cape Verde, Gambia, Ghana, Guinea, Mali, Senegal and Togo. The other seven countries will be programmed gradually.

Expanding its interventions to countries not yet or inadequately covered by GARI’s operations remains one of the priorities of the Fund. The expected benefits of the actions initiated within the context of the marketing plan should contribute to this.

With regards to operations, guarantee approvals rose to a total of FCFA 13.2 billion compared to FCFA 9.9 billion in 2006, that is a 33.3% increase, with always as leitmotiv, the quality of the risks. These approvals made it possible to mobilize financings totalling FCFA 44 billion, allocated to investments valued at FCFA 193 billion. As at 31 December 2007, new guarantees approved brought the cumulative guarantees approved by GARI up to FCFA 89 billion for financings amounting to FCFA 279 billion and concerning investments valued at FCFA 988 billion.

From the financial point of view, after major provisions allocated in 2006 to stabilize the portfolio and which led to a negative result of FCFA 368 million, the 2007 financial year closed with a profit of FCFA 217 million.

The financial situation of our institution is satisfactory and efforts for its consolidation, guarantee of the credibility of the Fund will continue. To this end, realizing the operational objectives defined in the 2008-2012 strategic plan adopted in December 2007 by the Board of Directors will be the high stake around which all efforts will be focused in order to increase the performance of the Fund.

In the area of cooperation, GARI participated actively in the creation of the Professional Association of African Guarantee Institutions (APIGA/PAAGI)?, which was brought to the baptismal font in April 2007 in Cotonou.

As regards future prospects, the Fund, while remaining true to its primary mission and continuing to ensure control of its risks, will endeavour to adapt to on-going developments in the regional finance sector and will be innovative as regards products offered, to provide increased support for the promotion of private investments in our countries.

I would like to express my heartfelt gratitude to all our financial partners for their confidence in our institution.

I would like to end this message by extending my warmest congratulations to the members of the Board of Directors and the Guarantee Fund Committee for the continuous efforts they have accepted to make in order to preserve the quality and credibility of the Institution. I also wish to commend Management and all the staff for their commitment and willingness to strive towards improving the achievements of our Institution.

SANOGOH Bintou
Chair of the Board of Directors