HomeBanking and FinanceDevelopment Bank Ghana Sets Ambitious Goal of GH¢1bn Funding for Commercial Banks...

Development Bank Ghana Sets Ambitious Goal of GH¢1bn Funding for Commercial Banks in 2024

Development Bank Ghana Sets Ambitious Goal of GH¢1bn Funding for Commercial Banks in 2024

Development Bank Ghana has revealed that it is working to advance GH¢1.0 billion to commercial banks and participating financial institutions this year to support some sectors of the economy.

Chief Executive of Development Bank Ghana, Kwamina Duker, who disclosed this to JOY BUSINESS in Washington DC on the sidelines of the Annual IMF /World Bank Spring meetings, noted this is part of its efforts to provide long-term funding to commercial banks for on-lending to the private sector and sectors described as crucial to the development of Ghana’s economy.

“Since we started operations, we have advanced $1.0 billion through our participating financial institutions to the private sector, and we intend to increase to $2.0 billion before the end of this year, ” the Development Bank’s Chief Executive mentioned.

This he said could make Ghana one of the biggest lenders in the country with respect to long-term funding.

Mr Duker pointed out that the bank remains resolute to provide the needed financial assistance to areas that have not been given the needed attention, by joining hands with participating financial institutions in the country, to provide the needed support.

Mr Duker argued that “The Bank places significant emphasis on targeted development sectors by providing financial support and expertise to these sectors through participating financial institutions. The bank aims to fuel prosperity and unlock the potential of Ghana’s economy”

Supporting the Agriculture Sector

Mr Duker revealed that out of the GH¢1 billion that will be given to the commercial banks this year, 25% to 35% should be allocated to the agricultural sector.

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The Chief Executive of the Development Bank added that its mandate is to work on certain areas in the economy like manufacturing, agriculture ICT, and high-value services.

“Our focus is primarily on agric, and that is why we are working with the Ghana Incentive-Based Sharing System for Agricultural Lending (GIRSAL) to help deal with funding challenges in the sector” Mr Duker added.

He noted that “we believe that agriculture is one of the best ways to transform the economy and provide support for food security and that is why we are giving this sector the needed attention.”

Impact Financing

The Chief Executive of Development Bank Ghana revealed that his outfit has also put in place measures to ensure that, these funds get to the right sectors and achieve the desired results.

He added that “This will ensure that expected impact is achieved in terms supporting sectors that have not secured the needed funding in the past.

“We are not lending for lending sake, but rather, lending with purpose and targeting banker-able deals” Mr Duker revealed.

Established in 2020, but launched full operations in 2022, the Development Bank Ghana is owed by the government, with co-financial assistance from the Federal Ministry for Economic Cooperation and Development of Germany through the KFW, World Bank, African Development Bank and European Investment Bank, by providing funding to commercial banks to on-lend to the private sector.

 

 

 

 

Source: Joy News

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