Dr Tony Okpanachi, Managing Director of the Development Bank of Nigeria (DBN), has described Africa’s capital markets as underutilised despite their vast potential to drive development across the continent.
Speaking in an interview on the sidelines of the African Development Bank’s Annual Meetings in Abidjan, Côte d’Ivoire, Okpanachi noted that if properly managed, the continent’s capital markets could play a vital role in mobilising long-term finance for infrastructure and other critical investments.
He observed that many African countries possess sizeable pension funds that, if effectively channelled, could significantly contribute to development financing.
“Africa’s capital markets and pension systems are essential tools for unlocking long-term funding for development,” he said. “These funds are inherently long-term and are best accessed through structured and transparent platforms such as capital markets. They offer a viable route for financing power, roads, and other critical infrastructure.”
Okpanachi called for deeper reforms to enhance transparency in Africa’s capital markets, unlock pension assets, and provide reliable financing sources for large-scale projects.
Also Read: DBN Disburses Over N1tn to MSMEs, Creates 1.2m Jobs – MD
He also highlighted the continuing importance of syndicated loans and commercial banking partnerships, particularly when blended with support from development finance institutions like the DBN.
“At DBN, we provide wholesale funding to commercial and microfinance banks, enabling them to extend long-term credit to small and medium-sized enterprises. This funding acts as a catalyst for further private sector investment,” he added.
Okpanachi concluded by saying that as Nigerian and other African banks grow their capital base, they would become more capable of delivering on both commercial and developmental objectives.
