The Ministry of Finance has signed an agreement with the European Investment Bank (EIB) for €170 million for the establishment of Development Bank Ghana (DBG).

The signing became possible after a meeting between President Nana Addo Dankwa Akufo-Addo and the President of the EIB, Dr Werner Hoyer, during the former’s official visit to Belgium.

According to Dr Hoyer, the facility was the highest provided by the bank for the establishment of a development bank or any other project in Africa.

The DBG is an integral feature of the GH¢100-billion Ghana Cares ‘Obaatampa’ project.

Significance

President Akufo-Addo said the DBG, when established, would play an important role in the rapid economic transformation of the country, in the midst of the COVID-19 pandemic.

“We want to restructure the economy and move it from being a mere producer and exporter of raw materials to one that places much emphasis on value-addition activities. We see this bank (DBG) as one that will play a pivotal role in this,” he added.

The President said the bank, which had been on the drawing board for the past two years, would operate in line with high standards, scrutiny and best practices of development banks across the world and gave an assurance that the €170 million facility from the EIB would be used for the purposes for which it was agreed upon.

He further said the provision of the facility signaled the determination of the country to continue partnering the EU for mutual benefits.

Signing

The Minister of State designate of Finance, Mr Charles Adu Boahen, who was present at the signing ceremony, explained that the focus of the government since the outbreak of the COVID-19 pandemic had been to put in place building blocks for an inclusive and sustainable economic recovery.

He said the overall objective was the creation of a favourable environment to spur private sector-led growth, adding that the government recognised the importance of the substantial allocation of development capital to critical economic sectors at sustainable interest rates and longer tenures.

Mr Boahen said there had been heightened need to establish the bank, which he said would be a central player in the country’s economic recovery and structural transformation, “especially given the importance of counter-cyclical support in stimulating private enterprise”.

Creating opportunities

For his part, Dr Hoyer said he was confident that the establishment of the bank would help unlock opportunities for growth in the country, as well as assist in the rapid recovery of the economy from the ravages of the COVID-19.

He also said the opening of the bank was in line with the objective of the EU and would help develop Ghana’s private sector, agri-business, manufacturing and ICT initiatives.

Dr Hoyer described the decision to establish the DBG as “a wise one” and said the EIB considered the partnership with Ghana fruitful.

He said the EIB would follow keenly the development and workings of the DBG.

Source: Graphic Online