T
he Development Bank Ghana (DBG) has initiated a programme to support local businesses to spur a quicker recovery of the economy.
The initiative dubbed, “DBG Economic Recovery Initiative” is in line with the bank’s mandate to transform and develop the country’s economy by empowering the private sector.
To ensure the success of the initiative, the chief executive officers (CEOs) and senior executives of CalBank, Absa Bank, Consolidated Bank Ghana (CBG), GCB Bank, Fidelity Bank and Access Bank met at DBG’s office last Monday to strategise on how the partnership with DBG could be strengthened and improved on to benefit the country.
The meeting was hosted by DBG’s Chief Executive Officer, Kwamina Duker.
Attendance
In attendance were the CEOs, namely Philip Owiredu (CalBank), Kofi Adomakoh (GCB Bank) and Daniel Wilson Addo (CBG).
The senior executives were Thairu Ndungu, Deputy CEO, CBG; Amazing Grace Anim-Yeboah, Director, Business Banking (Absa) and William Nettey, Head, Agribusiness (Absa); James Bruce, Head, Wholesale Banking (Access Bank), and Solomon Ocquaye, Financial Institutions (Access Bank); Alex Agyei Amponsah, Director, Commercial and SME (Fidelity); Dzifa Nyansafo, Head of Credit (CalBank); Sam Aidoo, Director, Wholesale and Investment Banking (GCB) and Linus Kumi, Head, Corporate Banking (GCB).
Also in attendance were Dr Yaw Ansu, Board Chairman of DBG; Kwesi Korboe, CEO of Ghana Incentive-based Risk Sharing System for Agricultural Lending (GIRSAL), and Michael Mensah-Baah, Deputy Managing Director, DBG.
Discussions
The discussions were centred on how DBG would work with the commercial banks, GIRSAL and other partners to support the private sector with long-term capital in an efficient and effective manner.
Areas of focus for the commercial banks included technology to build scale, efficiency and advocacy to secure policy change in support of local industries and their related value-chain.
It also included building and increasing lending and developing prudential guidelines with associated safe guards to better realise DBG’s mandate.
DBG’s agenda for 2023 focuses on food security and seeks to offer long-term funding of GH¢500 million to the agriculture sector, specifically for products such as maize, soya, poultry and rice.
There will be an additional GH¢500 million funding for sectors such as tourism and manufacturing.
As has been the approach employed by DBG in empowering local businesses, the bank – through its business partners, the Association of Ghana Industries (AGI), Ghana National Chamber of Commerce and Industry (GNCCI) and Ghana Chamber of Young Entrepreneurs (GCYE) – will provide technical assistance to 15,000 local businesses in order to build their capacity.
As part of DBG’s plans to deliver its mandate, the bank will this year introduce tailored solutions and products for the benefit of local businesses.
These would include Equity Funding and Partial Credit Guarantee.
Commenting on the bank’s economic recovery initiative, Mr Duker said “DBG remains focused on its agenda to empower local businesses in order to achieve a transformation of Ghana’s economy.
Our Economic Recovery Initiative is primarily aimed at improving the already great partnerships that DBG has forged in its first year in order to achieve a higher level of success which should see stronger local businesses that will form the backbone of our recovery and progress economically”.
Background
In 2022, DBG provided GH¢300 million in funds to local businesses in the agriculture, manufacturing and tourism sectors.
Within the same period, the bank with the support of its partners, provided capacity building to over 1,000 local businesses nationwide including youth and women-owned entities.
DBG is a Development Finance Institution, established by the Government of Ghana, in accordance with the Development Finance Act, 2020. DBG acts as an enabler for businesses in Ghana and as a long-term capital provider in the market.
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