Economic Advisor to the President, Seth Emmanuel Terkper, has called for a fundamental reset of West Africa’s development finance framework, urging closer collaboration between regional development banks and capital markets to unlock long‑term financing for infrastructure and economic transformation.
Speaking on behalf of President John Dramani Mahama at the opening of the 24th Annual General Meeting (AGM) of the ECOWAS Bank for Investment and Development (EBID) in Accra, Mr. Terkper said the sub‑region had reached a critical turning point that demands institutional scale‑up, deeper capital mobilisation and disciplined debt management.
The meeting, held under the theme “Resetting Financing for West Africa’s Transformation: Strengthening Regional Development Finance for a New Economic Era,” brought together ministers, central bank governors, development partners and business leaders from across the ECOWAS bloc.
Mr. Terkper said hosting the AGM in Accra carried strong historical symbolism, recalling Ghana’s independence in 1957 and Dr. Kwame Nkrumah’s assertion that Africa’s liberation would only be complete with economic freedom.
“Nearly seven decades later, the challenge remains — but it is now economic,” he said, noting that President Mahama, currently African Union Champion for Finance, has consistently pushed for reforms in Africa’s financial architecture and regional integration.
He criticised global income classification systems that restricted access to concessional financing for African countries despite their development challenges, often forcing them prematurely into international bond markets.
“The problem is not borrowing per se,” he said. “The problem is borrowing without discipline, without sinking funds, without amortisation, and without buffers.”
Mr. Terkper called for stronger collaboration between development banks and African stock exchanges to issue long‑term infrastructure and regional bonds.
“Our inability to borrow even for 10 or 15 years cripples infrastructure development,” he said, suggesting projects such as the Dakar–Lagos coastal highway could be financed through bonds repaid by toll revenues.
He pointed to Ghana’s recent macroeconomic recovery as evidence that disciplined reforms can restore stability and confidence, citing:
- 6% economic growth in 2025, led by non‑oil sectors
- Inflation decline to 3.2% in March 2026, from over 50% in 2022
- Over 40% appreciation of the cedi in 2025
- US$14.5 billion in international reserves, nearly six months of import cover
In remarks at the AGM, EBID President Dr. George Agyekum Donkor said the bank had remained resilient despite global uncertainty and economic volatility.
“In the face of economic volatility and geopolitical tensions, the bank has reinforced its capacity to adapt through strategic actions and multilateral cooperation,” Dr. Donkor said.
He disclosed that EBID’s debt commitments rose by 11.9 percent in 2025, while new disbursements jumped 47.7 percent to US$720.2 million. The bank’s total assets increased to US$2.4 billion, with profit rising 30.3 percent to US$10 million.
However, Dr. Donkor stressed that profit was not the institution’s primary goal.
“The mandate of the bank is not to make profit. Our core mission is to reduce poverty, create jobs and address the infrastructure deficit in West Africa,” he said.
Ratings, Climate Finance and Expansion
Dr. Donkor announced that Fitch had upgraded EBID’s outlook to positive, while Moody’s maintained a stable rating. He also said the bank had secured Green Climate Fund accreditation, EU fund management certification, and opened its first regional office in Abidjan, with a second office planned for Abuja in 2026.
Closing the meeting, Mr. Terkper urged ECOWAS member states to support EBID’s capital expansion and long‑term vision.
“West Africa’s transformation must be financed from within. We have the resources, the markets and the talent. What remains is collective resolve,” he said.
By: Christian Akorlie / businesspostonline
