TIG Post

Tag: Development Bank Ghana (DBG)

  • Stakeholders meet to discuss practical ways to improve trade finance for SMEs

    Stakeholders from the financial sector have gathered in Accra for a Public Private Dialogue to examine doable solutions to increase the country’s Small and Medium Enterprises’ (SMEs) access to trade credit.

    The African Continental Free Trade Agreement (AfCFTA) is now operational, so the Public-Private Dialogue (PPD), which was organized by CUTS International Accra, a renowned research and public policy think tank, with assistance from GIZ Ghana, aimed to involve relevant stakeholders on how to practically improve businesses’ and SMEs’ access to trade finance.

    In his welcoming remarks, the West African Regional Director of CUTS International, Mr Appiah Kusi Adomako explained that with the commencement of Trading under AfCFTA in January 2021, government and banks in the country must retool their trade finance packages to support SMEs in Ghana to make them competitive and improve their businesses and service.

    “Businesses and SMEs, require finance to be able to increase their business and improve their services to fulfill the demands of the growing market and AfCFTA. However, most of these SMEs in Ghana, similar to other African countries, face obstacles when trying to get trade financing, hence the call on government and financial institutions to support SMEs,” Mr Adomako explained.

    He added that access to trade finance is listed as one of the biggest problems that SMEs in Ghana must deal with.

    Mr Adomako explained that “the AfCFTA presents a rare opportunity for businesses across the continent to be able to export goods, largely quota-free and duty-free. On the parallel side also, member countries can equally import from one country to the other without any quantitative restriction. Even if an SME is not willing to export under the AfCFTA agreement, it must ensure that it is competitive at the local market as it can face competition from other African imports.”

    Mr Adomako emphasized that “the establishment of the Development Bank Ghana (DBG) by Government of Ghana, aimed at providing long-term and competitively priced loans to SMEs who have long struggled with the problem of access to finance to ensure that SMEs are better financed in critical sectors of the economy.

    While I commend the government for this great initiative, there is the need to create a good and friendly business environment and tailor-make policies and initiatives for the private sector, to guarantee SMEs have access to trade financing to support the growth and expansion of their business to other countries.”

    In addition, Mr Adomako explained there is the need to also create a good and friendly business environment and tailored-made policies and initiatives for the private sector, to guarantee SMEs have access to trade financing to support the growth and expansion of their business to other countries”.

    An Economist with the Bank of Ghana, Mr Kwasi Acheampong also emphasized that the Bank of Ghana is putting in measures to cushion businesses and support SME development. He said although the country is going through some economic difficulties, the Bank of Ghana is committed and is rolling out strategies and measures to address the current economic state of play.

    On his path, the Technical Advisor at the GIZ Trade Hub, Mr James Amisssah Hammond underscored the critical role SMEs play in the success of the AfCFTA and their contribution to Ghana’s GDP and trade.

    He explained that GIZ has conducted several training programs on the AfCFTA, and rules of Origin to build the capacity of the SMEs and improve their knowledge and awareness of the Agreement. He emphasized GIZ’s commitment to supporting SME development to unlock their potential to position them to benefit the AfCFTA.

    In attendance were representatives from the Bank of Ghana, US Embassy, European Union, Zenith Bank, Ghana National Chamber of Commerce and Industry, Ministry of Foreign Affairs and Regional Integration, Absa Bank, Association of Bankers, Chartered Institute of Bankers,

    KPMG, Ghana Revenue Authority, Ghana Enterprise Agency, Ministry of Trade and Industry, Cal Bank, ARB Apex Bank, Prudential Bank, Economics Department of the University of Ghana, Ghana Investment Promotion Centre (GIPC), GT Bank, GBC Bank Plc, FBN Bank among others, Private Enterprise Federation, the media and SMEs in Accra.

  • Development Bank Ghana, Ghana Chamber of Young Entrepreneurs sign MoU to train entrepreneurs

    The Development Bank Ghana (DBG) has signed a Memorandum of Understanding with the Ghana Chamber of Young Entrepreneurs (GCYE) to train about 1,000 young entrepreneurs across the country.

    The training will be focused on financial literacy, digitization and business management skills and achieved through digital workshops, seminars and business clinics.

    It is also to support the identification and training of Young Entrepreneurs within GCYE, and onboard the young entrepreneurs on the digital platform as part of the Ghana Integrated Financial Ecosystem led by the Monetary Authority of Singapore and DBG.

    Commenting on the agreement, Mr Michael Mensah-Baah, Deputy Chief Executive Officer, DBG, said the deal would provide support for institutional capacity building, knowledge sharing and benchmarking and sharing information and data to facilitate the understanding of each party’s mandate for effective collaboration.

    “It is to collaborate and engage with the government in GCYE’s advocacy role to shape government policies, programmes and reforms that promote youth entrepreneurship in Ghana,” he added.

    He said as a development bank with the responsibility to direct funding to the private sector, DBG had opted for a partnership with like-minded organisations to deliver on its agenda.

    He said this in essence was the reason for their collaboration with the GCYE.

    He said DBG and GCYE had developed a capacity-building programme to strengthen the soft and hard skills of young entrepreneurs for them to stay competitive and improve their business operations.

    The Deputy CEO said this would be in the form of a series of workshops with the first one commencing on Thursday, October 20.

    These workshops will aim at training businesses to scale up their operations as well as de-risking them to be able to access loans from DBG’s participating financial institutions.

    By the end of the series of workshops, the entrepreneurs can define their success by onboarding and training young entrepreneurs on the digital platform under GIFE with greater representation of women-led and youth-led businesses

    It will also equip over half of the young entrepreneurs to be bankable and eligible to access loans from DBG via the PFIs

    He said in all these, DBG’s primary objective remained to ensure that young entrepreneurs were in a better position to receive and use the funds that Banks, having attained an improved appreciation of the entrepreneurship landscape, were willing to lend.

    He said a critical role for DBG, therefore, was to provide long-term funding to banks and to engage in partnerships with institutions like GCYE which ensure that at the end of the day they empower the private sector for growth.

    “All this is possible because DBG is committed to accelerating inclusive and sustainable economic development by fostering the growth of a competitive private sector,” he said.

    Mr Sherif Ghali Abdulai, the Chief Executive Officer of GCYE, said it was never in doubt that the country’s young people were the country’s future and it was important for the nation to make conscious efforts to support youth entrepreneurship with good policies, programmes and reforms.


    He commended DBG for committing itself to the agreement, saying it was a demonstration of the confidence and belief in the Ghanaian youth’s ability to contribute meaningfully to the nation’s socio-economic development.

    Mr Abdulai urged other organisations and institutions to emulate the strategic example of the bank by partnering with the GCYE to develop programmes.

    He said the partnership was timely and strategic considering the debilitating economic environment and its consequential impact on businesses owned by young people.

    Source: GNA

  • We’ll expedite the IMF agreement so it can be included in the 2023 budget – Ofori-Atta

    In order to ensure that major elements of the programme are included in the 2023 budget statement, finance minister Ken Ofori-Atta said the government will expedite negotiations with the International Monetary Fund (IMF).

    The Finance Minister at a press briefing on Wednesday said negotiations have been smooth so far.

    “In line with the President’s dialogue with the IMF Managing Director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022,” he added.

    He said the government is committed to ensuring that a comprehensive package is negotiated with the International Monetary Fund with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection.”

    “In addition, the IMF and Government Team are working to update the medium-term macro-fiscal framework to inform IMF programme design.”

    The Finance Minister said no agreement has been reached with the fund on the parameters of debt operations, as the government is still in the process of completing the debt sustainability analysis.

    Mr. Ofori-Atta stressed that everything will be done, to protect the financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both the domestic and external investors.

    He also indicated that the Development Bank Ghana (DBG), is supporting the private sector to invest in areas that will stabilize the economy over the medium to long-term, with positive knock-on effects on job creation and economic growth.

    “I am extremely confident about where we will land on this journey. We have survived a 142 percent inflation, yellow-corn hysteria, mass exodus from our country, and more recently a successful exit from the 2015 Extended Credit Facility. So let us go for the spirit of courage for the LORD is with this Nation. Let us not fear, for He who is with us is greater than all.”