Funding pressures, stranded capital and trying to keep on the lights: ECOWAS bank's Goanue talks to Global South World

Efforts to power up west Africa face many challenges. In theory raising money should be one of the simpler ones, but right now even the region's development bank is struggling to access finance.

The ECOWAS Bank for Investment and Development's head of Research and Strategic Planning, MacDonald Goanue told Global South World

• How connecting one of the world's most electricity poor regions is key to growth
• How the bank is dealing with breakaway partner countries
• And why it is continuing to invest in fossil fuel projects

An immediate problem for the bank has been that it has had to delay the sale of Eurobonds: “Because of the geopolitical situation and rising tariffs in the United States, the cost of funding has gone up,” Goanue said in an exclusive interview at the Crans Montana Forum. “Given the fact that we are a non-investment-grade bank, we are waiting to see how the market cools down before we can go.”

For Goanue, this is not a problem confined to EBID. It reflects a deeper flaw in the international financial architecture. Credit rating agencies, he argues, apply methodologies that “tend to punish” African countries because of structural factors - security risks, low per-capita incomes, shallow domestic markets - that are hard to change overnight. When West African regional entities try to raise capital, they end up paying nine or ten percent interest - sometimes even 12 percent - far higher than institutions elsewhere.

While a major part of the answer lies in debt forgiveness, countries can also improve their situations but developing deeper domestic capital markets, he argued. However he cautioned against following artificial deadlines for the introduction of a single currency - the Eco is still official slated for 2027.

"I think the leadership of ECOWAS is playing cautious, because they want to be sure that they don't want to go into an arrangement tomorrow that will collapse," he said, adding that intraregional trade only accounted for perhaps 8 percent within the block against 77 percent in the euro area prior to the introduction of the Euro.

Powering growth

Against this backdrop, EBID’s core mission is to finance infrastructure—especially energy. Access to electricity in West Africa is among the lowest in the world, a bottleneck that constrains industrialisation, raises costs for basic services, and feeds inflation. Nigeria, the region’s largest economy, still faces enormous deficits in power supply, while only a few countries like Cape Verde and Côte d’Ivoire have relatively high coverage.

Goanue, himself Liberian, paints a vivid picture: without reliable electricity, shops close at sunset, hospital services cost more to run, and even banks struggle with overheads. “With electricity access, there will be a 24-hour economy,” he said. “Small businesses can stay open later, people feel safer, and factories can be powered. It will create the entrepreneurial spirit.”

EBID has already financed power plants in Benin, Togo, and Côte d’Ivoire and is seeking to increase its footprint in Nigeria. One flagship example is the Maria Glater plant in Benin, which the bank has supported. Yet the scale of the challenge is immense, and Goanue is cautious about promising big breakthroughs in the next 12 months. “It takes time,” he said, noting that the bank also funds connecting roads and other infrastructure that underpin regional trade.

Climate considerations

How does EBID square this urgent need for energy with global pressure to shift away from fossil fuels? Goanue admits it is not easy. “It’s not possible to end investment in fossil fuels immediately,” he said. Nigeria’s budget, for example, still relies heavily on oil revenues, and new discoveries are seen as good news by African governments. EBID does have environmental, social, and governance (ESG) policies, and most of its member states subscribe to the Paris Climate Accord, but Goanue emphasises that transition will take time. “There is a way you can make these things clean,” he said. “We want to invest into clean energy, but we have to balance it.”

Managing a split

Guanoe is evidently proud of his institutions pragamtic approach to the biggest challenge ECOWAS has faced in recent times - the departure or Burkina Faso, Mali, and Niger - reducing the bloc's membership to twelve. With major major exposure in these states - about 23 percent of its portfolio or more than $200 million - the bank has resisted pressure to pull out completely.

Instead, the bank has persuaded ECOWAS leaders to let it continue disbursing funds for ongoing projects and to keep staff from these countries in place. Goanue likens the approach to how British citizens were treated in EU institutions after Brexit. “We are careful and circumspect to ensure that our facilities are repaid,” he said. Burkina Faso has stayed current on its restructured repayments, Mali has restarted payments, and Niger is making token transfers despite fiscal stress.

This pragmatic stance is driven by economic as much as political logic. If EBID simply withdrew, non-performing loans would spike, undermining its own creditworthiness and pushing up borrowing costs further. In addition, nobody benefits if projects already paid for are not completed.

A brighter future

Despite the obstacles, Goanue remains optimistic. West Africa’s population exceeds 480 million—roughly the size of the European Union—but its GDP is only around $700 billion, and per-capita incomes and banking penetration are low. Building deeper domestic markets, harmonising regulations, and moving toward a single currency are all on the agenda.

What gives him hope is demographics. The region’s average age is under 20, offering a potential “youth dividend” if the right investments in capacity and infrastructure are made.