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African PerspectiveBusiness & Economy

Africa Doesn’t Need More Capital, It Needs Smart Capital that Supports Growth – GCB MD Says

GCB MD Farihan Alhassan says Africa needs smarter, patient capital structures rather than simply more money, urging stronger bank-DFI partnerships to match long-term projects with suitable financing while preserving liquidity for future investments.

Africa Doesn’t Need More Capital, It Needs Smart Capital that Supports Growth – GCB MD Says
Farihan Alhassan
Fredrick Addai Kwarteng
Sep 15, 2026

Africa’s financing problem may not simply be a shortage of capital but a mismatch between the kind of money available and the kind of investments the continent needs.

This is the view of the Managing Director of GCB Bank, Farihan Alhassan, who was speaking at the African Leadership Council.

Farihan Alhassan argued that Africa needs smarter, more patient capital structures that allow commercial banks, development finance institutions and investors to finance long-term growth without putting the financial system under unnecessary liquidity pressure.

Short Money, Long Projects: Africa’s Problem

The GCB Bank MD maintains that the problem is built into how banks operate. Commercial banks are largely funded with relatively short-term deposits, but many of the businesses and infrastructure projects they are expected to finance require money for five, 10, or even 20 years.

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This, he says, creates a basic mismatch. A bank cannot sustainably use money that could be demanded by depositors tomorrow to finance a project that may not generate meaningful returns for many years.

For instance, he imagines borrowing someone’s money for six months and lending it to a business that will only start generating significant cash flow after five years. The business may be excellent, but the financing structure is wrong.

This is the problem Farihan Alhassan wants Africa to solve.

Bring DFIs into the Equation

His proposed answer is closer cooperation between commercial banks and development finance institutions (DFIs). He believes that DFIs can help provide longer-term funding, guarantees, risk-sharing mechanisms or other forms of patient capital that allow commercial banks to participate in projects without carrying the entire maturity risk on their balance sheets.

This would give businesses access to financing better suited to the lives of their projects. A factory should not have to rely on financing designed for a short-term trading cycle.

A major infrastructure project should not depend entirely on funding structures built around short-term deposits.

Capital Must Come Back to Work

Farihan Alhassan further argues that capital must be structured in a way that allows it to be recycled. Banks and investors are not simply deploying money once. They need returns from today’s investments to finance tomorrow’s businesses.

When the financing structure is too short, too expensive or poorly matched to the project, that cycle breaks down. Capital becomes trapped, stressed or withdrawn before the underlying investment has had enough time to produce returns.

The result is fewer businesses financed, fewer projects completed and less capital available for the next generation of entrepreneurs.

The Real Opportunity is Smarter Capital

This is why Mr Alhassan believes Africa should move beyond the familiar demand for “more capital.” The continent certainly needs investment, but the bigger question is how that investment is structured.

He believes the structure should encompass more patient funding, better risk-sharing, longer maturities, closer bank-DFI partnerships, and financing costs that reflect actual risk rather than perception.

These changes, he argues, could allow the same pool of capital to finance more businesses over time.

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GCB’s Dividend Delay Raises Questions of Corporate Governance & Threatens Investor Confidence Following GCB Bank PLC’s announcement that it cannot proceed with its approved dividend payment, an expert is revealing that the issues raise serious questions of corporate governance and investor confidence. A notice by GCB Bank announced to shareholders that the Central Bank has cited it for regulatory breaches and hence cannot grant approval for dividends to be paid for last year, despite the approval by the shareholders at GCB’s Annual General Meeting in May this year. The BoG’s decision, GCB says, is linked to a regulatory issue over the reclassification of restructured cocoa bills into bonds, which has put the bank in temporary breach of the single obligor limit. This is a key that caps exposure to a single borrower. While GCB insists this is a compliance matter and not a sign of financial strain, the news lands at a sensitive time for Ghana’s financial sector. The banking industry is still adjusting to the aftereffects of the Domestic Debt Exchange Programme (DDEP), which changed how many institutions account for government-related debt instruments. The Rule Banking and financial consultant, Dr. Richmond Atuahene, explains in an interview with The High Street Journal that the Single Obligor Limit rule can be found in Act 930 of the Banks and Specialised Deposit-Taking Institutions Act 2016. Per the law, it refers to the maximum amount of credit exposure a bank or specialized deposit-taking institution can have to a single customer or obligor. According to the Act, banks are not allowed to exceed a certain percentage of their net own funds to a single obligor, an individual or a company. This is to limit the risk of exposure to a single customer. Some key aspects of the single obligor limit include - Purpose: To reduce systemic risk and encourage diversification - Limit: A maximum of 25% of net own funds to a single counterparty - Objective: To prevent banks from being overly exposed to a single borrower or group, thereby protecting depositors and maintaining financial stability This limit is an essential component of Ghana's banking regulations, aimed at ensuring the soundness and stability of the financial system. The Corporate Governance Concern Dr. Atuahene maintains that for GCB Bank to breach the rule signals weak corporate governance. He cannot fathom why the board members sat aloof for this to occur, knowing very well the existence of the rule. He explains that the “weak corporate governance” has made GCB excessively exposed to the COCOBOD. To him, the high exposure creates what he refers to as seismic risk, meaning that in the event of the collapse of COCOBOD, GCB will be highly affected. He therefore indicated that they cannot pay dividends to shareholders as directed by the Bank of Ghana because it has flouted the law. To him, the regulator is just applying the law by cracking the whip. “It means the corporate governance was bad. Because if the directors were up and doing, they would have seen it earlier and possibly notified the BoG for remedies,” he said. The Impact on Investor Confidence The question now is whether this directive for the bank to halt dividend payouts will dent investor confidence or simply be viewed as a procedural bump. For some investors, dividend payouts are a key indicator of a bank’s strength and reliability. The postponement, emanating from breaches of law, could cause a few to reassess their positions. Others, however, see it as a sign of regulatory discipline, not weakness. Investors will be watching how quickly GCB resolves this. The response time, not just the problem itself, will shape perceptions. GCB says it is “actively engaging” with regulators to restore full compliance and proceed with the dividend as soon as possible. The bank has also reaffirmed its commitment to financial soundness and the protection of shareholder value. For now, the market remains calm, but beneath that calm lies curiosity, and perhaps a little concern.

GCB Bank’s Dividend Delay Raises Questions of Corporate Governance & Threatens Investor Confidence

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