West Africa urged to rethink development financing
The 24th Annual General Meeting (AGM) of the ECOWAS Bank for Investment and Development (EBID) has opened in Accra, with renewed calls for a reset of development financing to accelerate West Africa’s economic transformation.
The meeting is expected to review the bank’s performance and chart a strategic path to strengthen regional development finance, particularly in mobilising long-term capital, addressing infrastructure deficits, and deepening economic integration across member states.
President John Dramani Mahama, in an address delivered on his behalf by the Senior Presidential Adviser, Seth Terkper, at the opening ceremony yesterday, said the gathering had come at a critical time when Africa must move beyond political independence towards economic self-reliance and resilience.
He noted that tightening global financial conditions and heightened risk sensitivity continued to limit access to affordable long-term financing for many African countries.
He explained that Ghana’s reclassification as a lower-middle-income country had reduced its access to concessional financing and grants, pushing the country towards international capital markets, where borrowing costs remained high.
The President stressed the need for innovative financing solutions, including stronger collaboration between development banks and capital markets to unlock domestic resources and reduce reliance on external funding.
On Ghana’s economic performance, he said the country had made gains through prudent fiscal management and reforms, resulting in improved macroeconomic stability.
He said Ghana recorded a six per cent growth rate in 2025, driven largely by the non-oil sector, while inflation declined to 3.2 per cent as of March 2026.
He added that the cedi had stabilised and appreciated, while gross international reserves rose to about $14.5 billion, strengthening import cover and investor confidence.
President Mahama called for the adoption of long-term financing instruments, such as infrastructure and municipal bonds, to support key sectors, and urged countries to build financial buffers to withstand shocks.
He further urged EBID to scale up its capital base and reposition itself to drive regional transformation through private sector investment and large-scale projects.
• Mr Terkper (fourth from left), Dr Ato Forson (sixth from left), with other dignitaries at the ceremony
The Minister of Finance and Chairman of the Board of Governors of EBID, Cassiel Ato Forson, urged member states to fulfil their capital commitments to strengthen the bank’s capacity.
He said although a capital increase of 3.4 billion dollars had been approved, outstanding arrears stood at about 256 million dollars, with only Ghana, Côte d’Ivoire, Guinea, and Togo fully meeting their obligations.
Dr Forson noted that despite global challenges, EBID recorded strong performance in 2025, with its balance sheet expanding from 1.97 billion dollars to 2.4 billion dollars.
He said profitability rose from 8.55 million dollars to 9.8 million dollars, while project approvals increased by 50 per cent and commitments surged to 840 million dollars, largely in energy and transport infrastructure.
In a related development, the President of EBID, Dr George Agyekum Donkor, said the bank recorded new investments of 722 million dollars in 2025, representing a 47.7 per cent increase, while its portfolio of active projects also grew steadily, driven by infrastructure and industrial development initiatives.
He reiterated that EBID’s mandate was to support member states through long-term concessional financing to address infrastructure deficits, reduce poverty, and promote inclusive growth.
He outlined a forward-looking strategy focused on growth, resilience, and operational efficiency, with plans to mobilise about 2 billion dollars to support high-impact sectors, particularly private enterprise, climate resilience, and social development.
BY STEPHANIE BIRIKORANG
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