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Development Bank Ghana

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Coordinates: 05°33′19″N 00°12′06″W / 5.55528°N 0.20167°W / 5.55528; -0.20167
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Development Bank Ghana
Company typeParastatal
IndustryFinance Banking
Founded2021; 3 years ago (2021)
HeadquartersAccra Financial Center
Liberia Road, Accra, Ghana
Key people
Yaw Ansu (Chairman)
Kwamina Duker (Chief Executive Officer)
ProductsLoans, equity partnerships, financial advisory services, management services, export/import finance
Total assetsUS$800 million (2022)
OwnerGovernment of Ghana
Number of employees
40 (2022)
WebsiteHomepage

The Development Bank Ghana (DBG) is a government-owned development bank in Ghana. Owned by the government of Ghana, the institution has received grants and loans for on-lending to Ghana's commercial banks, from the African Development Bank, the World Bank Group, the European Investment Bank, and the German Development Bank.[1] The DBG focuses on providing indirect loans to small and medium enterprises (SMEs), with less than 100 employees each.[2][3] A key area of interest in their immediate and long term plans is environment, social and governance focus to help build a sustainable economy in Ghana.[4] Fostering solid collaborations to support growth in the economy, generate jobs, and strengthen the capabilities of SMEs is the goal of DBG. DBG offer de-risking services and long-term funding, supported by technology and research and insights that are founded on solid facts. DBG additionally aims to draw in, nurture, and keep talented individuals. Run as a self-sufficient, eminently successful institution. Last but not least, DBG encourage ESG excellence within the companies we sponsor.[5]

Overview

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DBG was established in July 2021,[6] to provide loans to commercial banks and other financial institutions in Ghana, for on-lending to Ghanaian SMEs. The institution is owned by the Ghanaian government. Funding support has been received from international development institutions, as detailed in the previous section. As of June 2022, DBG's total assets were valued at almost $800 million. At that time, shareholders' equity was US$250 million).[7][8]

As of June 2022, four commercial banks had signed on to accept funds from DBG, for on-lending to eligible businesses, (a) CalBank (c) Consolidated Bank Ghana (c) Ghana Commercial Bank and (d) Fidelity Bank Ghana.[7][8]

It identifies with United Nations’ SDG’s and works assiduously with the following SDG’s:

SDG 5 which is gender equality

SDG 9 which is industry, innovation and infrastructure

SDG 13 which is climate action[9] and

SDG 17 which is partnerships for the goals in other to promote sustainable growth in Ghana.[4]

History

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The DBG was conceived in 2017 , established in 2020, awarded license to operate by Bank of Ghana in 2021 and launched in June 2022.[10][11] It was established to complement two other government-owned financial houses established before, namely the Agricultural Development Bank of Ghana and the National Investment Bank. However, they lacked long-term lending at reasonable rates to small businesses, "in the agriculture value chain, manufacturing, and high-value services".[12]

Mandate

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The mandate of DBG is to provide long-term financing and de-risking services underpinned by technology and evidence-based research insights. However, the core mandate of DBG is to provide and alleviate financing constraints faced by micro, medium, and small enterprises(MMSE) and small corporates in business, manufacturing, and high-value services through the provision of wholesale financing and partial credit guarantees to eligible financing.

Future plans

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The bank plans to increase its coffers by injecting more capital from the government of Ghana and its development partners.[8] It is the objective of DBG to increase the proportion of banking loans advanced to small businesses from 9 percent in 2022 to 15 percent in 2024.[12][13]

Functions

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  • The bank will ensure that it truly serves the industrial and export strategies of Ghana's economy.
  • It will also encourage businesses to do more in terms of job creation and expansion.
  • It will raise long-term funds from both the local and international capital markets and from international financial organizations based on the bank's own balance sheet.
  • A wholesale bank to lend financial organizations for un-lending to businesses.[6]

Sectors

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  • Tourism
  • Off-farm agribusiness farm value-chain activities
  • Manufacturing
  • ICT-software
  • Housing[6]

Board of directors

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As of December 2021, DBG's board of directors consisted of:

  1. Yaw Ansu (Chairman)
  2. Kwamina Duker - Chief Executive Officer
  3. Stephan Leudesdorff - Non Executive Director
  4. Charles Boamah - Non Executive Director
  5. Rosemary Yeboah - Non Executive Director
  6. Mary Boakye - Non Executive Director
  7. Yaw Nsarkoh and - Non Executive Director
  8. Nora Bannerman-Abbott.[14]

Management

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As of 31 January 2022, Kwamina Bentsi Enchill Duker is the chief executive officer of the Development Bank Ghana. He also serves as a member of the bank's board of directors.[15]

  1. Michael Mensah Baah - Deputy Chief Executive Officer
  2. El Farouk Omar - Chief Technology Officer
  3. Dr Kwabena Opuni-Frimpong - Chief Economist
  4. Dr Prince J. Adjei - Chief Risk Officer

See also

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References

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  1. ^ "Bright Simons: A new development bank in Ghana raises old issues". myjoyonline.com. 2 May 2023. Retrieved 29 September 2023.
  2. ^ Rachel Savage (14 June 2022). "Ghana development bank aims to lend $600 million to small firms over 1-2 years". Reuters.com. London, United Kingdom. Retrieved 17 June 2022.
  3. ^ KfW (15 December 2021). "A new engine for Ghana's economic transformation - the Development Bank Ghana". German Development Bank. Frankfurt, Germany. Retrieved 17 June 2022.
  4. ^ a b "Sustainability – Development Bank Ghana (DBG)". Retrieved 13 September 2023.
  5. ^ "Who We Are – Development Bank Ghana (DBG)". Retrieved 28 September 2023.
  6. ^ a b c Awal, Mohammed (21 July 2021). "Does Ghana need new Development Bank?". The Business & Financial Times. Retrieved 24 August 2023.
  7. ^ a b Theresa Smith (16 June 2022). "Catalysing SME growth in Ghana through a Development Bank". ESI-Africa.com. Cape Town, South Africa. Retrieved 17 June 2022.
  8. ^ a b c Ghana Today (14 June 2022). "Development Bank Ghana secures $800 million from shareholders …ready to kick-start operations". Ghanatoday.gov.gh. Accra, Ghana. Retrieved 17 June 2022.
  9. ^ "Development Bank to support green projects". ghanaweb. Retrieved 29 September 2023.
  10. ^ Komminoth, Leo (15 June 2022). "Ghana's long-awaited Development Bank finally launches". African Business. Retrieved 24 August 2023.
  11. ^ "Corporate Governance – Development Bank Ghana (DBG)". Retrieved 13 September 2023.
  12. ^ a b Ghana Today (14 June 2022). "President Akufo-Addo inaugurates Development Bank Ghana". Ghanatoday.gov.gh. Accra, Ghana. Retrieved 17 June 2022.
  13. ^ "Development bank Ghana committed to the growth of SMEs". graphic.com. Retrieved 29 September 2023.
  14. ^ Mariam Naa Dedei Aryeetey (1 February 2022). "Government Appoints Board Of Directors & Ceo For Development Bank Ghana (DBG) Limited". PanAfricanvisons.com. Accra, Ghana. Retrieved 17 June 2022.
  15. ^ Nerteley Nettey (31 January 2022). "Gov't appoints 7-member Board for DBG; names Kwamina Bentsi Enchill Duker as CEO". CitiNewsroom.com. Accra, Ghana. Retrieved 17 June 2022.
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05°33′19″N 00°12′06″W / 5.55528°N 0.20167°W / 5.55528; -0.20167

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