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$800M out of targeted $1 billion capital raised for Development Bank Ghana – Ofori Atta

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The Finance Minister, Ken Ofori-Atta says $800 million out of the targetted $1 billion foundational capital for the establishment of the Development Bank Ghana has been raised.

Speaking on Good evening Ghana on Metro TV on Thursday, November 19, 2021, the Finance Minister listed some sources of the monies received so far.

“We had a target of raising a foundational capital of $1 billion, and already we are at $800 million. We got some money from Africa Development Bank, KFW, EIB, World Bank, and after that we are going to head to the market to be able to raise some money.”

“There is the need to get creative with sources of funding in the world. I’m sure we will find a way to look at this whole climate change thing to be able to work with the Green Fund to bring resources,” he added.

When asked if the venture is going to create more debt for the country, the Finance Minister said, “what is debt? Debt has to be used properly if it is to mean anything, and that is what we intend to do.”

Meanwhile, the Minister, who presented the 2022 budget to Parliament on Wednesday, announced the bank has been granted its operational license by the Bank of Ghana.

“Mr. Speaker, I have great news. On Friday, November 12, 2021, the Governor of the Bank of Ghana formally handed over the license for the Development Bank. 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, as a wholesale bank, provide loans to financial institutions, it will also provide partial credit guarantees to complement the efforts of GIRSAL in agriculture and agribusiness.”

DBG is an integral feature of the GHS 100 billion Ghana Cares ‘Obaatampa’ Project, which is seeing to the revitalization of the Ghanaian economy following the onset of COVID-19.

President Akufo-Addo has noted that the Development Bank, Ghana is going to play a very important part in the rapid economic transformation of Ghana, following the onset of COVID-19.

He said the bank when established will restructure the economy and move it from being a mere producer and exporter of raw materials to one that places much greater emphasis on value addition activities.

“We see this Bank (DBG) as one that will play a pivotal role in this.”

The President also indicated that the design and operation of the Bank, “which has been on the drawing board for the last two years”, will satisfy the highest standards, scrutiny, and best practices of Development Banks across the world, assuring further that the €170 million facility from the EIB will be used for the purposes for which it was sought.”

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