The First Deputy Governor of the Bank of Ghana (BoG), Dr Zakari Mumuni, has reaffirmed the central bank’s commitment to maintaining a stable and credible monetary environment to attract foreign direct investment into Ghana.
He said the bank’s role in safeguarding monetary and financial stability complements fiscal efforts to create an enabling environment for investment.
However, he stressed that the Bank of Ghana and other central banks in the region cannot determine the commercial success of individual investment projects.
Dr Mumuni was speaking at the High-Level West Africa–Asia Capital Dialogue in Bangkok, Thailand, on the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank.
Organised by the ECOWAS Bank for Investment and Development (EBID), the dialogue examined the barriers constraining Asian capital flows into West Africa and the steps needed to unlock greater investment.
Dr Mumuni said central banks have a responsibility to maintain price stability, safeguard financial stability, support efficient payment systems and ensure transparent foreign exchange arrangements.
“Just like other central banks in West Africa, the Bank of Ghana is also interested in innovations that improve cross-border payments and support trade and investment,” he said.
Attracting FDI: Lessons from Ghana
Sharing Ghana’s experience, Dr Mumuni said elevated inflation, exchange rate pressures and debt challenges had required “difficult but necessary policy adjustments and significant reform efforts”.
He said these experiences underscored the importance of macroeconomic stability in attracting and retaining long-term investment.
“Macroeconomic instability increases risk, raises financing costs, and discourages long-term investment,” he said.
Conversely, he noted, price stability, sustainable public finances and credible institutions provide the foundation for private sector growth.
“At the Bank of Ghana, our role is to maintain monetary and financial stability and support confidence in the economy,” Dr Mumuni said.
He stressed, however, that stability alone would not deliver sustainable investment.
“Sustainable investment ultimately depends on a strong pipeline of productive opportunities and competitive businesses,” he said.
Dr Mumuni outlined four priorities to help Ghana and other West African countries attract more investment.
First, he called for better risk-sharing arrangements, with development finance institutions, export credit agencies, governments and private investors working together to allocate risks to those best equipped to manage them.
Second, he urged stronger project preparation, saying a robust pipeline of investment-ready projects was essential to attracting long-term capital.
Third, he advocated financing structures suited to the lifespan of investment projects. He said long-term investments require long-term financing, while greater use of local-currency financing, where feasible, could reduce currency mismatches and improve project viability.
Finally, he called for stronger institutional partnerships that combine Asian capital and expertise with African market knowledge and investment opportunities.