Strengthen Project Fundamentals to Unlock Real Estate Financing, Stanbic Bank Urges Developers

Stanbic Bank Ghana is actively encouraging the African real estate sector to mature by emphasizing the critical role of thorough project preparation in securing financing. Kobby Bentsi-Enchill, Head of Investment Banking, articulated this at the Africa Real Estate Festival, stressing that banks require more than just good ideas. They need to see meticulously prepared projects with complete documentation, credible financial forecasts, clear land ownership, and well-defined exit strategies.

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When a developer walks through our doors with a project, the quality of the idea matters, but it is rarely the deciding factor. What separates a fundable project from one that stalls at the assessment stage is preparation. Complete documentation, credible financial projections, clear land title, and a well-articulated exit strategy tell us that the developer has done the hard thinking. That is what builds a bank’s confidence.

Bentsi-Enchill highlighted that many potentially viable projects falter not due to market demand but because of inadequate packaging. He explained that banks, like Stanbic Bank Ghana, have a fiduciary duty to their depositors and shareholders, necessitating rigorous due diligence to ensure project viability and sustainability. This process, he clarified, is not intended to obstruct developers but to safeguard investments and ensure successful outcomes.

The bank's executive also advised developers to engage experienced technical and financial consultants early in the project lifecycle. He framed these advisory services not as an expense but as a strategic investment crucial for navigating the financing landscape. Developers who consistently secure funding are those who build strong teams of experts, including quantity surveyors, legal counsel, and financial advisers who understand bankability and can effectively communicate the project's merits to lenders.

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The real estate sector across Africa holds enormous potential, and we genuinely want to support its growth. But a bank’s obligation is to its depositors and shareholders as much as it is to its borrowers. Due diligence is not a hurdle we place in front of developers to frustrate them; it is the mechanism by which we ensure that the projects we back are viable, sustainable, and structured to succeed.

Stanbic Bank Ghana views its role in the real estate and construction sector as integral to Ghana's development agenda. The bank remains committed to fostering market growth through direct lending and strategic partnerships, underscoring its dedication to bringing well-structured real estate projects to fruition. This proactive approach demonstrates Stanbic Bank's position as a key partner in unlocking the continent's real estate potential.

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The developers who consistently secure financing are the ones who surround themselves with the right expertise. A seasoned quantity surveyor, a competent legal team, a financial adviser who understands bankability; these are not luxuries. They are the people who ensure your proposal speaks the language that lenders understand and respond to.