On Tuesday, June 14, 2022, President Nana Akufo-Addo formally launched the Development Bank of Ghana to support President Nana Akufo-vision Addo's of a Ghana Beyond Aid, which entails positioning the private sector to lead our country's socio-economic transformation and create quality jobs for the youth.
"Today's event is the culmination of years of painstaking efforts undertaken by the Akufo-Addo government to strengthen the infrastructure for the transformation of the Ghanaian economy for private sector-led growth," President Akufo-Addo said at the event, which took place at the Kempinski Hotel in Accra.
The proposal of establishing a Development Bank, according to the President, was revealed in the 2017 Budget Statement and Economic Policy when he first took office.
"It is one of several policy proposals proposed by my government to assist in the transformation of Ghana's economy." "The overarching goal is to provide long-term investment to the private sector while also developing the ecosystem for market access, technology, and innovation," he explained.
The Development Bank's primary goal, according to the President, is to assist transform important areas of the economy over time by supporting all institutions necessary for SME transformation.
Manufacturing, agriculture (particularly off-farm value chain activities), ICT and allied services, tourism, and the mortgage and housing market are among these industries.
President Akufo-Addo said that efforts have been made to increase access to finance and markets since Ghana's independence, with previous endeavors leading to the establishment of the National Investment Bank and the Agricultural Development Bank.
These institutions, on the other hand, have failed to deliver on their promise of providing consistent support for private sector growth.
For this reason, the Ministry of Finance worked closely with KfW in Germany, as well as other multilateral institutions such as the European Investment Bank, the World Bank, and the African Development Bank, to secure international funding, diversify its shareholding, and implement best practices in order to establish an independent Board and a financially viable institution.
"As a result, the government put up a $250 million initial equity investment, the European Investment Bank €170 million, the World Bank $225 million, and the African Development Bank provided a US$40 million grant." He added the Bank's total committed capital, including debt and equity, is now at US$750 million.
Akufo-Addo establishes the $750 million Ghana Development Bank.
"Undoubtedly, Development Bank Ghana should be the underpinning for our renewed commitment to private sector development," President Akufo-Addo stated. It is intended to strive to turn our SMEs into well-functioning, formal, and robust corporations with the ability to boost GDP, expand employment, and improve tax compliance."