New Financing Could Test West Africa’s Regulation, Supervision

Reversal of international capital flows may limit state infrastructure financing

Therefore development of new sources of infrastructure financing is critical

Conference reviewed progress made in regional financial integration

Finance ministers, central bank governors, and other senior officials from West Africa gathered in Accra, Ghana, this week to review progress made in regional financial integration and get a glimpse of what their future could have in store.

Conference delegates met to discuss financial sector integration under the auspices of the IMF and the government of Ghana, who co-hosted the conference for the Economic Community of West African States (ECOWAS).

The one-day event, focusing on the Opportunities and Challenges of Financial Sector Integration in West Africa, examined in detail many of the issues that this rapidly developing region faces and included in their discussions the emergence of financial institutions now widely known as pan-African banks.

Lessons from other regions

Speaking at the opening of the conference, Ghanaian Vice President Kwesi Amissah-Arthur said that “the development of sources of infrastructure financing is critical at a time when a reversal of (international) capital flows may constrain the capacity of governments to financing infrastructure needs.” He called on the conference to draw lessons from other regions that have mitigated risks associated with financial sector integration.

IMF Deputy Managing Director Naoyuki Shinohara said that the conference reached important conclusions that will have to be taken forward by the participating governments. “International experience tells us that more complex financial systems require more sophisticated supervision to maintain financial stability,” he said. “Countries in West Africa are now host and home to financial...