This synthesis report offers an examination of national development banks (NDBs) in Africa, drawing from case studies in four countries: Ghana, Cote d’Ivoire, Rwanda and Tunisia. It discusses their evolution in governance structures and operations, their financial and developmental performance, and the challenges they face within their operating environments.
The study finds that government and various stakeholders should design models and frameworks that create financial and strategic synergies between the central bank and NDBs to deepen financial intermediation, improve their business models, instil best governance practices and propel industrial and agricultural growth. The undue political interference in financing, investment and lending decisions that lead to the bad financial performance of these banks should be avoided by instituting an independent board appointment process for these banks. For policy implication, it is important for the shareholding structure of NDBs to be reclassified to ensure better compliance with the rules of governance. In all cases, particular attention should be paid to the composition of the board of directors and its mode of operation and assessment of the bank’s performance which is, in principle, accountable for maintaining good governance, and ensuring strategic banking policies that align with the requirements of national development and contribute to the achievement of the Sustainable Development Goals (SDGs).
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