Kobby Bentsi-Enchill, Head of Investment Banking at Stanbic Bank Ghana, has called on real estate developers across Africa to strengthen their project fundamentals, emphasizing that robust preparation is key to unlocking crucial financing from financial institutions. Bentsi-Enchill made these remarks at the Africa Real Estate Festival, an event that brought together industry leaders, investors, and developers to address the persistent financing challenges hindering property development on the continent.
The festival served as a platform to examine the ongoing gap between the demand for real estate development and the available financing. Developers often present innovative ideas, but these alone are insufficient to secure investment.
The Crucial Role of Project Preparation
Bentsi-Enchill highlighted that the decision to finance a project hinges less on the novelty of the idea and more on the thoroughness of its preparation. He explained that complete documentation, credible financial projections, clear land titles, and well-defined exit strategies are critical indicators of a developer’s diligence.
These elements demonstrate that the developer has conducted the necessary in-depth analysis, thereby building confidence with potential lenders. Many proposals fail not due to a lack of market demand but because of preventable shortcomings in how projects are structured and presented.
Banks’ Due Diligence and Developer Confidence
Stanbic Bank, like other financial institutions, has a fiduciary responsibility to its depositors and shareholders. Bentsi-Enchill stressed that due diligence is not an arbitrary obstacle but a necessary process to ensure the viability and sustainability of projects backed by the bank.
The real estate sector in Africa presents significant opportunities, and banks are keen to support its growth. However, they must operate within a framework that mitigates risk and ensures a return on investment.
Strategic Partnerships and Expert Advisory
To enhance their chances of securing financing, developers are advised to engage experienced technical and financial consultants early in the project lifecycle. These consultancy fees should be viewed as a strategic investment rather than an additional cost.
Consultants can help ensure that project proposals are presented in a manner that resonates with lenders. The developers who consistently succeed in obtaining financing are those who build strong teams of experts.
This includes seasoned quantity surveyors, competent legal teams, and financial advisors with a deep understanding of bankability. These professionals are instrumental in translating a developer’s vision into a language that financial institutions understand and trust.
Stanbic Bank’s Commitment to Real Estate Development
Stanbic Bank Ghana reaffirmed its commitment to the real estate and construction sector, identifying it as a commercial priority and a vital contributor to Ghana’s broader development agenda. The bank actively finances well-structured projects and seeks to grow the market through direct lending and strategic partnerships.
Real estate development, when executed effectively, generates employment, contributes tax revenue, and addresses critical infrastructure needs. Stanbic Bank aims to be a reliable partner for developers committed to sustainable and sound building practices.
Future Outlook for African Real Estate Financing
The emphasis on robust project fundamentals signals a maturing of the African real estate market. Developers who adapt to these requirements by investing in thorough planning and expert advice will be better positioned to attract the necessary capital. This shift could accelerate the pace of development and address the growing demand for quality housing and commercial spaces across the continent.
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