Experts advocate revival of NIB-Nestlé model to drive industrial growth

A proposal is gaining traction for Ghana to adopt an equity-driven industrial financing model under a framework dubbed “BIG PUSHCAS” (Capital Allocation Strategy), with advocates arguing it could create up to 500,000 jobs and unlock between $5 billion and $10 billion in annual exports.

The proposal builds on the government’s ongoing “BIG Push” agenda but calls for a more decisive shift in how capital is deployed, moving beyond traditional debt financing to include equity participation in strategic industries.

At the centre of the recommendation is a revival of the historic partnership model between the National Investment Bank (NIB) and Nestlé Ghana Limited, where the state bank took equity stakes in industry rather than relying solely on lending.

Proponents say the model enabled long-term industrial growth by reducing reliance on high-interest loans, supporting reinvestment, and strengthening production capacity. They argue that the absence of such bold financing approaches in recent years has contributed to stagnation in Ghana’s industrial sector.

The proposal highlights what it describes as a growing gap in the current system, where many agro-processors and manufacturers are heavily indebted, operate below capacity, and struggle with high borrowing costs. It also points to limited equity participation by key institutions such as the Ghana Exim Bank and Development Bank Ghana.

Under the BIG PUSHCAS framework, advocates are calling for equity financing to become central to industrial policy. Suggested measures include converting portions of existing industrial debt into equity, establishing value chain investment funds, and enabling state-backed financial institutions to act as co-investors rather than just lenders.

The proposal also ties the strategy to a broader “Feed the Industries” approach, which focuses on strengthening supply chains through large-scale agricultural production and processing. It argues that equity financing would allow for full production cycles, improved capacity utilisation, and stronger linkages between farming and industry.

Supporters estimate that, if implemented effectively, the model could generate between 300,000 and 500,000 jobs across agriculture, processing, logistics, and related services. They also project significant export growth in sectors such as processed foods and beverages, oils and cosmetics, fisheries, textiles, and light manufacturing.

Particular emphasis is placed on high-value crops such as avocado, coconut, and passion fruit, which require long-term investment due to extended maturation periods. Equity financing, proponents say, would provide the patient capital needed to develop these value chains and compete in global markets.

The proposal outlines several policy recommendations, including embedding equity financing within the BIG Push framework, mandating development finance institutions to adopt equity participation models, initiating debt-to-equity swaps for strategic firms, and creating public-private investment vehicles.

Advocates warn that without clear implementation measures, the initiative risks remaining a policy concept rather than delivering tangible industrial outcomes.

They maintain that revisiting and scaling proven models like the NIB-Nestlé partnership could provide a practical pathway to building resilient industries and accelerating Ghana’s economic transformation.