Development Bank Ghana has ability to offer over US$600 million of credit - CEO

Kwamina Bentsi Enchill Duker 122 Kwamina Duker is CEO of Development Bank Ghana

Tue, 14 Jun 2022 Source: www.ghanaweb.com

DBG commences operation with US$800million capital

Part of initial capital of DBG from government

We’ll lend to banks at affordable interest rates, DBG

Chief Executive of the Development Bank Ghana, Kwamina Duker, has disclosed that the bank will officially start operations with about $800 million in capital.

He stated that the bank will lend to financial institutions to help them give loans to business owners at affordable interest rates.

This he noted is to grow lending fivefold over the next five years aimed at helping end a shortage of funding to small and medium-sized enterprises.

In a press briefing ahead of the launch of the bank's operation, he said, “Long-term lending is extremely rare” for smaller businesses in Ghana and this has stymied the development of sectors ranging from agribusiness to manufacturing and information and communications technology. We are trying to fill the gap.”

Businesses especially small and medium-sized companies across the African continent have lamented the effects of stifled access to credit for their businesses.

“The gap in the manufacturing sector for SMEs alone is about GH¢150million. It will be extremely difficult for any one institution to fill that gap. This is why DBG is mandated to do the difficult things first, which is to build collaborative unions with the banking sector to ensure that, together, we amplify our ability to leverage Bank. So, we act as a catalyst by working with some of the banks,” Mr. Duker said.

“If our SMEs grow and thrive, our banks can grow and thrive; they will then repay the loans the DBG has given them; we will then have a good story to tell our stakeholders and shareholders, and then we will get replenished,” he said.

“We need to be able to lend to the banks at rates that make it possible for them to lend to the SMEs at rates that allow them to grow.”

He also noted that the development bank’s initial capital has come from government, the World Bank, the European Investment Bank, Germany’s KFW Group, and the African Development Bank.

“We definitely have to grow the amount that we have,” he said. The current amounts available “are just take-off funds and there’s a big program by our development partners to grow the amounts that we have.”

Duker further noted that even though the expectation of the bank is to initially replenish and grow the institution’s funds from development finance institutions, it also plans to tap commercial lenders at a later stage.

The bank currently has the ability to offer $600 million to $700 million of credit.

Source: www.ghanaweb.com
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