GHANA – ECOWAS Bank for Investment and Development (EBID), has granted a US$50 million facility to the Consolidated Bank Ghana Limited (CBG) to support Ghana’s road infrastructure development.
The President and Chairman of the Board of Directors of EBID, Dr. George Agyekum Donkor, and the Managing Director of CBG, Mr. Daniel Wilson Addo, signed the deal at the Head Office of CBG in Accra.
The granting of this line of credit embodies EBID’s development commitment to address the huge infrastructure deficit within the West African sub-region, which falls in line with Ghana’s developmental agenda to boost socio-economic growth through the development of a reliable road network across the country.
Consequently, this line of credit to CBG will provide an impetus to bolster the government’s development initiatives.
As of date, EBID has invested over US$2.8 billion to promote the development of various sectors in the ECOWAS community in health, agriculture, energy, hospitality, trade, telecommunications, manufacturing, and infrastructure.
Speaking to Citi Business News, Dr. Agyekum Donkor explained that doing business with promoters through CBG and other major sub-regional corporate institutions will help to limit the level of non-performing loans which are originally intended for developmental projects in Ghana and other ECOWAS member-states.
CBG, with a balance sheet size of GHS 10 billion (US$1.73bn) and 114 branches across the 16 regions of Ghana, is one of the largest banks in Ghana.
The bank has rapidly established a reputation for excellence in banking, particularly in providing lending and digital solutions to SMEs. CBG is also actively leveraging its balance sheet and reach to facilitate government’s post COVID recovery agenda.
The facility from EBID will be used to augment its financing scheme to private construction companies in the execution of key road projects within the country.
Throughout the 6-year period, EBID and CBG will collaborate to ensure that the road infrastructure projects to be financed comply with the provisions of the national and international institutional framework on sustainable development and environmental protection.
ECOWAS Bank for Investment and Development (EBID) is a leading regional investment and development bank, owned by the 15 ECOWAS 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 programs 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 a long, medium, and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations and related services.