Farihan Alhassan urges African banks to rethink risk to unlock growth capital

Farihan Alhassan, Managing Director of GCB Bank PLC, called for a shift in Africa's economic development strategy during the African Banking, Finance and Economic Leadership Roundtable, held as part of the 16th African Business Leaders Awards in London, United Kingdom. He argued that the continent's financing challenges are less about capital scarcity and more about building the right risk structures to attract investment at scale. He stated, "The challenge is not always the absence of capital. Often, it is the structure of risk and the confidence needed to attract private capital at scale."

Speaking on the theme, Strategic Convergence: Aligning Global Capital with Africa's Growth Imperatives, Farihan said Africa's ability to attract sustainable long-term investment depends on how effectively governments, financial institutions, and development partners work together to de-risk opportunities and create more predictable investment environments. He pointed to an infrastructure financing gap estimated at between US$68 billion and US$108 billion annually, and a widening climate finance deficit. He described the "Africa risk premium" as a significant barrier, causing African countries to pay more to borrow despite lower actual default rates on infrastructure investments compared to many other regions. Farihan highlighted blended finance, partial credit guarantees, and other de-risking tools as practical mechanisms.