The Development Bank Ghana (DBG) is a government-owned

development bank A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis. , total commitme ...

Ghana Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...

. Owned by the government of

, the institution has received grants and loans for on-lending to Ghana's commercial banks, from the

African Development Bank The African Development Bank Group (AfDB) or (BAD) is a multilateral development finance institution headquartered in Abidjan, Ivory Coast, since September 2014. The AfDB is a financial provider to African governments and private companies i ...

, the

World Bank Group The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Grou ...

, the

European Investment Bank The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions ...

, and the

German Development Bank German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...

. The DBG focuses on providing indirect loans to

small and medium enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...

(SMEs), with less than 100 employees each. A key area of interest in their immediate and long term plans is environment, social and governance focus to help build a sustainable economy in

. Fostering solid collaborations to support growth in the economy, generate jobs, and strengthen the capabilities of SMEs is the goal of DBG. DBG offer de-risking services and long-term funding, supported by technology and research and insights that are founded on solid facts. DBG additionally aims to draw in, nurture, and keep talented individuals. Run as a self-sufficient, eminently successful institution. Last but not least, DBG encourage ESG excellence within the companies we sponsor.

Overview

DBG was established in

July July is the seventh month of the year in the Julian and Gregorian calendars and is the fourth of seven months to have a length of 31 days. It was named by the Roman Senate in honour of Roman general Julius Caesar in 44 B.C., it being the mont ...

2021, to provide loans to commercial banks and other financial institutions in Ghana, for on-lending to Ghanaian SMEs. The institution is owned by the Ghanaian government. Funding support has been received from international development institutions, as detailed in the previous section. As of

June June is the sixth month of the year in the Julian and Gregorian calendars and is the second of four months to have a length of 30 days, and the third of five months to have a length of less than 31 days. June contains the summer solstice in ...

2022, DBG's total assets were valued at almost $800 million. At that time, shareholders' equity was US$250 million). As of June 2022, four commercial banks had signed on to accept funds from DBG, for on-lending to eligible businesses, (a)

CalBank CalBank is a commercial bank in Ghana, that is licensed by the Bank of Ghana, the central bank and national banking regulator. Location The headquarters of CalBank and its main branch are located at 23 Independence Avenue, in the central bu ...

(c)

Consolidated Bank Ghana Consolidated Bank Ghana (CBG) is a commercial bank in Ghana. It is licensed by the Bank of Ghana, the central bank and national banking regulator. Location The headquarters and main branch of the bank are located on the First Floor, Manet Tow ...

(c)

Ghana Commercial Bank GCB Bank Limited formally known as ''Ghana Commercial Bank'' is the largest bank in Ghana in terms of total operating assets and share of industry deposits, with 14.2% of total industry deposits. In August 2017, the Bank of Ghana, the nation's cen ...

and (d)

Fidelity Bank Ghana Fidelity Bank is a commercial bank in Ghana which begun business in October 1998 as a Discount House. It was issued with its Universal Banking License on June 28, 2006, making it the 22nd bank to be licensed by the Bank of Ghana. It is one of th ...

. It identifies with

United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...

’

SDG The Sustainable Development Goals (SDGs) or Global Goals are a collection of 17 interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future".United Nations (2017) R ...

’s and works assiduously with the following SDG’s: SDG 5 which is gender equality

SDG 9 Sustainable Development Goal 9 (Goal 9 or SDG 9) is about "industry, innovation and infrastructure" and is one of the 17 Sustainable Development Goals adopted by the United Nations General Assembly in 2015. SDG 9 aims to build resilient infrastruc ...

which is industry, innovation and infrastructure SDG 13 which is climate action and SDG 17 which is partnerships for the goals in other to promote sustainable growth in Ghana.

History

The DBG was conceived in 2017 , established in 2020, awarded license to operate by

Bank of Ghana The Bank of Ghana ( BoG) is the central bank of Ghana. It is located in Accra and was formed in 1957. The bank is active in developing financial inclusion policy and is a member of thAlliance for Financial Inclusion History The Central Ban ...

in 2021 and launched in June 2022. It was established to complement two other government-owned financial houses established before, namely the Agricultural Development Bank of Ghana and the

National Investment Bank National Investment Bank, normally abbreviated to NIB, is a state owned commercial bank in Ghana. It is one of the commercial banks licensed by the Bank of Ghana, the national banking regulator. NIB is a medium-sized financial services provider ...

. However, they lacked long-term lending at reasonable rates to small businesses, "in the agriculture value chain, manufacturing, and high-value services".

Mandate

The mandate of DBG is to provide long-term financing and de-risking services underpinned by technology and evidence-based research insights. However, the core mandate of DBG is to provide and alleviate financing constraints faced by micro, medium, and small enterprises(MMSE) and small corporates in business, manufacturing, and high-value services through the provision of wholesale financing and partial credit guarantees to eligible financing.

Future plans

The bank plans to increase its coffers by injecting more capital from the government of Ghana and its development partners. It is the objective of DBG to increase the proportion of banking loans advanced to small businesses from 9 percent in 2022 to 15 percent in 2024.

Functions

* The bank will ensure that it truly serves the industrial and export strategies of Ghana's economy. * It will also encourage businesses to do more in terms of job creation and expansion. * It will raise long-term funds from both the local and international capital markets and from international financial organizations based on the bank's own balance sheet. * A wholesale bank to lend financial organizations for un-lending to businesses.

Sectors

* Tourism * Off-farm agribusiness farm value-chain activities * Manufacturing * ICT-software * Housing

Board of directors

As of December 2021, DBG's

board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

consisted of: # Yaw Ansu (Chairman) # Kwamina Duker -

Chief Executive Officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...

# Stephan Leudesdorff - Non Executive Director # Charles Boamah - Non Executive Director # Rosemary Yeboah - Non Executive Director # Mary Boakye - Non Executive Director # Yaw Nsarkoh and - Non Executive Director # Nora Bannerman-Abbott.

Management

As of 31 January 2022, Kwamina Bentsi Enchill Duker is the

chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...

of the Development Bank Ghana. He also serves as a member of the bank's board of directors. # Michael Mensah Baah - Deputy

# El Farouk Omar - Chief Technology Officer # Dr Kwabena Opuni-Frimpong -

Chief Economist Chief economist is a single-position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of respons ...

# Dr Prince J. Adjei -

Chief Risk Officer The chief risk officer (CRO) or chief risk management officer (CRMO) or chief risk and compliance officer (CRCO) of a firm or corporation is the executive accountable for enabling the efficient and effective governance of significant risks, and rel ...

References

External links

Development Bank of Ghana Official Website

DBG
on

LinkedIn LinkedIn () is an American business and employment-oriented online service that operates via websites and mobile apps. Launched on May 5, 2003, the platform is primarily used for professional networking and career development, and allows job se ...

DBG
on

Twitter Twitter is an online social media and social networking service owned and operated by American company Twitter, Inc., on which users post and interact with 280-character-long messages known as "tweets". Registered users can post, like, and ...

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