The President and Chairman of the Board of Directors of the ECOWAS Bank for Investment and Development (EBID), Dr George Agyekum Donkor, has highlighted the importance of Development Finance Institutions (DFIs) in expanding capital to finance economic growth.
He made the remarks during a series of public lectures on the topic “Shaping Africa’s Development Finance Landscape: Challenges and Prospects” held at the University of Development Studies (UDS) School of Business in Tamale, Ghana.
Addressing the financing constraints faced within capital markets, the President of EBID pointed out that where private credit may struggle in response to economic crises, DFIs are able to provide long-term financing for investment projects. In this regard, he cited examples of the significance of DFIs for governments desirous of reviving failing industries and stimulating economic recovery, especially in the wake of the multiple adverse global shocks.
“DFIs play significant roles in the growth and development of emerging and developing economies. They are crucial in fostering market expansion, reducing risk, and opening doors for other investors to access untapped markets,” Dr Donkor said. He added that “Over the years, EBID, as the premium DFI in West Africa, has become a key lever for transforming West Africa through financing major ECOWAS projects and programmes across the priority sectors of the economies of ECOWAS.”
He called for policy considerations, including establishing robust corporate governance mechanisms within DFIs, comprehensive risk management systems, and solid monitoring and evaluation systems to maximise their impact on the African economic landscape.
The lecture also explored innovative financing solutions, such as green funds, and strategies to position Africa as the emerging investment frontier while moving forward with the Sustainable Development Goals (SDGs) and Africa Union Agenda 2063. The Pro Vice-Chancellor of the University, Professor Elliot Haruna Alhassan, who deputised for the Vice Chancellor, Professor Seidu Alhassan, chaired the session, which was attended by prominent scholars, finance experts, students, and the general public.
About EBID
ECOWAS Bank for Investment and Development (EBID) is the development finance institution of the Economic Community of West African States (ECOWAS) comprising fifteen (15) Member States namely, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Based in Lomé, Togolese Republic, the Bank is committed to financing developmental projects and programmes covering diverse initiatives from infrastructure and basic amenities, rural development and environment, industry, and social services sectors, through its private and public sector windows. EBID intervenes through long, medium, and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations, and related services.