ECOWAS bank plans to double assets to $4.4 billion to help close West Africa's $36 billion infrastructure financing gap

EBID aims to double its balance sheet to $4.4 billion in five years to help narrow West Africa's $36 billion annual infrastructure financing gap.

The bank plans to achieve this by attracting new investors and strengthening its capital base, recently receiving a $100 million boost from the African Development Bank.

In 2023, EBID financed 15 projects worth $817 million, focusing on transport, energy, agriculture, and industry, with a new strategy to direct 63% of new financing to the private sector.

EBID is expanding its support beyond loans, offering grants, equity, and public-private partnership financing to help governments manage infrastructure delivery without escalating debt.

The ECOWAS Bank for Investment and Development (EBID) plans to double its balance sheet to $4.4 billion over the next five years as it seeks to narrow West Africa's estimated $36 billion annual infrastructure financing gap and expand lending for large-scale development projects across the region.

MacDonald Saye Goanue, coordinator of the bank's vice presidency operations, said the Lomé, Togo-based lender aims to grow its balance sheet from about $2.2 billion by attracting new investors and strengthening its capital base.

A major step toward that goal came with the African Development Bank's (AfDB) $100 million capital injection, which EBID believes will strengthen its credit profile, lower funding costs, and attract additional investors, according to Bloomberg.

Last year, EBID financed 15 projects worth $817 million, covering sectors such as transport, energy, agriculture, and industry. Under its new five-year strategy, 63% of new financing commitments will be directed toward the private sector, reflecting a growing emphasis on mobilising private capital to address Africa's infrastructure deficit.

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Supporting governments beyond loans

Beyond traditional lending, EBID is expanding the range of financing tools available to member states.

"Our key role is to help our member states overcome basic challenges," said Joseph Kwadwo Asenso, head of the bank's macroeconomic research and studies division. He noted that the bank also provides grants, equity investments, and public-private partnership financing, allowing governments to deliver infrastructure without significantly increasing public debt.

The bank's West African Development Outlook projects the region's fiscal deficit will widen to 3.5% of GDP in 2026, up from 2.6% last year, underscoring the growing financing pressures facing governments.

EBID is also reviewing its lending framework after demand for financing increasingly exceeded its current lending limits.

The bank currently cannot lend more than 15% of its paid-up capital to a single borrower, a restriction that has become a constraint as energy, transport, and port projects grow in size. EBID is now seeking approval to support transactions worth between $200 million and $300 million, positioning itself to play a larger role in financing West Africa's next generation of infrastructure projects.