Development Bank Ghana to be established in September; gov’t to mobilise $500m seed fund

Development Bank Ghana to be established in September; gov’t to mobilise $500m seed fund

- Ken Ofori-Atta, the Finance Minister, has disclosed the possible establishment of a Development Bank Ghana in September 2020

- Four partners have agreed to help raise $500 million for the bank by December 2021

- Ofori-Atta added that the Bank would mobilise medium to long-term funds for Ghana

Our Manifesto: This is what believes in has learned that the government is set to establish the Development Bank Ghana (DBG) in two months.

Information available shows the bank would be resourced with seed funds to the tune of $500 million.

In line with the plan, four international financial institutions are being consulted to ensure the bank is established by September 2020.

Development Bank Gh to be established in September; gov’t to mobilise $500m seed fund
Minister of Finance, Ken Ofori-Atta Source: Bloomberg
Source: UGC

READ ALSO: Depreciation of the cedi: Bank of Ghana to build reserves of up to GHc300 million

A report lists the partner institutions as KfW, the World Bank, AFD, and the European Investment Bank (EIB).

It has been gathered that the partners intend to raise the $500 million for the bank by December 2021.

The Minister of Finance, Ken Ofori-Atta, said the DBG would serve as a promotional bank for Ghana and will focus on mobilising medium to long-term funds.

DBG will then transfer them into the economy through the financial system as a wholesale bank.

He went on to say that a competitively selected independent board and management team would be tasked to run the DBG.

In other news, Ken Ofori-Atta has called for deeper reforms as Africa combats the outbreak of the coronavirus.

In his opinion, the coronavirus pandemic has undoubtedly had the greatest economic impact since World War II.

He added that Ghana expected to record a GDP growth of 6.8% in 2020 but is currently projecting a 1.2% growth.

READ ALSO: Ken Ofori-Atta hints of plans by government to protect jobs and businesses

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