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BoG grants licence for Development Bank Ghana, says Ofori-Atta

The Minister for Finance says the Bank of Ghana (BoG) granted the licence last Friday (12 November 2021)

The Bank of Ghana (BoG) has granted a licence to the government to establish the Development Bank Ghana, the Minister for Finance, Ken Ofori-Atta, has announced.

Presenting the 2022 Budget Statement and Economic Policy in Parliament on Wednesday (17 November), Ofori-Atta said: “I am happy to note that with the establishment of Development Bank Ghana (DBG), Government will provide a powerful response to a long-standing desire of our businesses for easier access to medium- and long-term loans at affordable interest rates.

“Not only will DBG provide loans, it will also provide partial credit guarantees to complement the efforts of GIRSAL [the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending project] in agriculture.”

He added, “Following the extensive financial sector reform, coupled with the establishment of the Development Bank Ghana (DBG) [and] the conversion of the Ghana Amalgamated Trust (GAT) into a permanent investment vehicle, we now have a robust financial ecosystem that will support businesses from the early to mature stage.”

The DBG is expected to source funds on the domestic, regional and international capital markets by issuing bonds and diaspora instruments and by borrowing directly periodically.

The DBG is being positioned as a post-COVID-19 recovery institution, learning from the experience of institutions such as KfW in Germany and the Development Bank of Singapore, which played a critical role in transforming the economies of their home countries.

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