The Chief Executive Officer (CEO) of Development Bank Ghana (DBG), Dr. Randolph Nsor-Ambala, says the Bank will this year roll out GHS500 million to support Ghana’s agricultural ecosystem.
According to him, the money is to strengthen and support Small and Medium-sized Enterprises (SMEs) in the agriculture value chain and consequently rejuvenate the economy by improving food security, enhance productivity and create employment opportunities.
Dr. Nsor-Ambala made this known when he delivered a speech at the Kwahu Business Forum in Mpraeso, Kwahu over the weekend.
The Forum which was under the theme: “The Future of Business: The Role of the Financial Sector” forms part of government’s vision of building a more resilient and inclusive economy through SME empowerment.
The Forum had His Excellency President Mahama as its most prominent guest. It also brought together various business owners, industrialists, investors, start-ups, various financial institutions including banks and captains of industry to engage stakeholders, discuss policy interventions and explore strategies to enhance Ghana’s business landscape.
The DBG approach focuses on sustainable transformation rather than isolated interventions, ensuring that capital flows to where it can have the greatest impact on economic development.
Over the past years, DBG has provided GHS1.62 billion in loans to over 650 businesses, with tenures up to 15 years. These investments are projected to generate over 18,000 direct jobs across the country.
The Development Bank currently has active portfolios in 13 regions and will be aiming to cover all of Ghana’s 16 regions this year.
In his remarks at the event, Dr. Nsor-Ambala stated that “what we exist to do is to provide a comprehensive set of support for businesses. Most people would know us for affordable long-term loans but beyond that we do a lot more.
As we speak, we are working with our partner financial institutions to get them to be able to understand the agriculture sector to evaluate it properly. The default position for most financial institutions is to see any such business case as risky and dangerous to invest in.”
“Through the technical assistance programmes we provide, first to the businesses themselves and secondly to the financial institutions with whom we work, we have been able to build capacities within the financial institutions for them to understand especially the agriculture sector to be able to value it properly. Related to that we are working with our development partners around putting in place mechanisms for partial guarantee for the agriculture sector as well an agric-insurance programme that will further reduce the risk associated with the sector”, he added.
Dr. Nsor-Ambala explained that the development finance institution, DBG, is rolling out GHS500 million to support SMEs in the agriculture value chain to unlock growth potential and ensure sustainable development right from input suppliers and farmers to processors and distributors.
He added that this support was also in alignment with the government’s broader economic recovery agenda, which includes broadening access to affordable financing for local businesses and offering targeted support to SMEs through tailored financial solutions and technical assistance.
“DBG is about inclusive opportunity, that is, creating jobs for our youth, building sustainable businesses, and positioning Ghana as a competitive force in African and global markets” he reassured.
According to the DBG CEO, the Bank’s main areas of focus, in terms of providing support, are ensuring food security through the support the Bank provides to the agriculture value chain, be it farming or agribusiness and others, as well as the manufacturing sector with a focus on import substituting and export.
The Bank also has a value proposition dedicated to the ICT sector and supports human capital development by focusing on health and education. Infrastructure including transport is also a key DBG focus area.
DBG’s commitment to empowering local businesses is not only about fostering innovation and job creation but to also position the private sector as a key economic driver of the economy which contributes meaningfully to national economic transformation.
Development Bank Ghana is a wholesale financial institution established by the Government of Ghana. Since its inception three years ago, DBG has facilitated significant disbursements through Participating Financial Institutions (PFIs), unlocking projects and value chains to empower several businesses across agribusiness, manufacturing, ICT, and high-value services.
The Bank has received funds from the World Bank, European Investment Bank, Kreditanstalt Für Wiederaufbau (KfW), and the African Development Bank.
Source | GNA
