AfDB to Establish Credit Enhancement Facility in Ghana to Unlock Pension Capital for Infrastructure and Industrial Development
The African Development Bank (AfDB) Group has announced plans to set up a special credit enhancement and de-risking facility in Ghana aimed at unlocking long-term financing for infrastructure and real sector projects.
The facility, which forms part of AfDB’s broader strategic support to Ghana’s economic transformation agenda, is expected to serve as a conduit for mobilising institutional capital—particularly from pension funds estimated at $5.2 billion—for large-scale, growth-oriented investments.
Speaking on the initiative, AfDB’s Vice President for Infrastructure and Industrialization, Solomon Quaynor, stated that the facility will offer tailored credit enhancement tools to reduce investment risk and improve the bankability of local infrastructure and industrial projects.
“Our aim is to establish and operationalise a credit enhancement and de-risking facility in Ghana as a viable mechanism to unlock institutional capital for infrastructure and real sector financing,” said Mr Quaynor.
“These credit enhancement tools are designed to de-risk local projects, making them more attractive to institutional investors,” he added.
According to Mr Quaynor, the move is also aligned with the Government of Ghana’s push for a 24-hour economy, with the AfDB identifying critical areas of collaboration to ensure the successful implementation of the policy.
“These areas include comprehensive project preparation support, knowledge-sharing on industrial park development, and downstream financing solutions,” he noted.
He further disclosed the Bank’s enthusiasm for supporting industrial park development, particularly in sectors such as textiles, garments, and light manufacturing.
“We are particularly excited about the potential to develop integrated industrial parks focused on textiles, garments, and light manufacturing. This also includes support for major transformational initiatives like the Volta Economic Corridor,” Mr Quaynor emphasized.
The Volta Economic Corridor project, once completed, is expected to enhance regional connectivity and industrial activity along Ghana’s eastern corridor.
AfDB’s intervention is part of broader efforts to deepen the country’s investment landscape, boost private sector confidence, and provide alternative sources of financing beyond traditional public sector borrowing.
