Development Bank Ghana Announces Recommendations To Achieve Food Security

Development Bank Ghana (DBG) has announced the key outcomes of its recent multi-stakeholder value chain workshops held across a number of regions in the country, revealing extensive insights and also putting forward recommendations to support Ghana’s efforts to achieve food security and other economic benefits.

This was made public at the Value Chain Dissimilation Workshop held on Monday

The key outcomes from the workshops (strategic focus in the rice, soya, maize and poultry sectors) were put out in a report where they were classified under five main areas including mapping the value chain, identifying SMEs and its partner pipelines, undertaking policy and regulatory reforms, financing and implementation.

Mapping the value chain: the Bank established that there were in total, over 13 development partners operating in the four value chains although some operate in more than one sector. Through this, DBG has been able to identify the gaps that currently exist, within which the Bank can play a critical role.

Identifying SMEs for DBG and its partners’ pipeline: 29 SMEs were selected for further assessment including being subjected to the rigorous due diligence necessary for qualification to receive financing from DBG via its commercial banking partners or participating finance partners (PFIs).

Undertaking policy and regulatory reforms: covers the effort aimed at addressing identified challenges which cut across all the value chains which include low productivity, high post-harvest losses emanating from issues with aggregation, transportation, storage and trading, poor extension services, capacity building and technical assistance, low levels of value addition especially processing within the value chains and the lack of reliable value chain data for decision making.

Financing: DBG’s assessment revealed the financing requirements of the four value chains and the need for stakeholders to coordinate their resources to meet the objectives. In line with this, total financing over five years was projected at US$1.04 billion, of which US$686 million has been identified, leaving a financing gap of US$354 million.

As part of the financing, it is estimated that GCX will need a seed capital of about US$200 million to implement the proposed reforms. Although this funding is not readily available, DBG will work with GCX, the Shareholder and other interested stakeholders including equity funders to secure this funding which is critical for a successful implementation of the recommendations.

Implementation: DBG established six main pillars under which it has placed the various actions necessary to deliver on the outcomes. The six pillars are production related recommendation, Aaggregation, warehousing, storage and trading, agro-processing, policy advocacy, capacity building and technical assistance and studies.

DBG’s objective is to unplug the identified bottlenecks along the critical paths of the value-chains of the rice, maize, soya and poultry sectors.

They include the establishment of an input credit system which is aimed at increasing production and productivity by providing high-yielding seeds and fertilizer. It also includes the incorporation of a subsidiary of the Ghana Commodity Exchange (GCX) which will tackle the issue of post-harvest losses, reduce the amount of food in storage and also increase storage life of commodities.

Another recommendation calls for the use of technology to advance production, productivity and input pricing, market information through videos and audio recordings, aggregators buying at farm gate and taking them to the warehouses and continuous trading by GCX.

The Ghana Commodity Exchange (GCX) has also accepted the recommendations which relate to its operations and will be working with DBG to set out the terms of reference, workplan and timelines to secure implementation. (Read More Here)

Food imports are responsible for about half of food inflation in Ghana. With the high import volumes of staple food items, particularly rice, sugar, and poultry, the effects of the cost of living on the average citizen cannot be underestimated. Food security is therefore an issue in Ghana and this is confirmed by Ghana’s 83rd ranking in 2022 out of 115 countries on the Global Food Security Index.

Dr. Kwabena Opuni-Frimpong, DBG’s Chief Economist and Head of the Economic Research Department said, “DBG’s overall goal is to seek consensus with its stakeholders and partners in ways in which these recommendations can effectively be implemented to the benefit of our commercial banking partners or participating financial institutions (PFIs) and Small and Medium Enterprises (SMEs) with the view of supporting national growth and transformation.”

In line with its operating model, DBG is employing a collaborative approach in order to ensure that the recommendations are implemented. Currently there is an ongoing communication and collaboration with a dedicated team from the Ministry of Food and Agriculture (MoFA) on the next phase, which involves implementing the recommendations.

This will be based on a Memorandum of Understanding (MoU) which will be signed by both parties. Already, out of the 29 SMEs identified from the value chain workshop, 13 have been taken into the pipeline by the partner financial institutions (PFIs).

 

Source: MyJoyonline.com

Development Bank Ghana Introduces ‘DBG Connect’

In line with its vision of propelling growth of Ghana’s private sector, the Development Bank Ghana (DBG) has introduced DBG Connect; a digital platform for thought-provoking discussions with industry leaders, experts and key stakeholders on pivotal themes of financial and economic transformation. It is a platform where ideas converge, where knowledge is shared and where sustainable solutions are generated.

DBG’s mandate includes fostering strong partnerships to finance Small and Medium Enterprises (SMEs), creation of jobs and capacity building. Driven by this mandate, the DBG Connect platform was launched to stimulate conversations that will generate right interventions to drive financial transformation of businesses in Ghana. DBG Connect is structured on a podcast format. Discussions are moderated by a host who engages panelists on in-depth conversations on topical issues like challenges and opportunities in agriculture, leveraging of technology to support industry, policy advocacy and agricultural financing, etc. The video version of DBG Connect is available on the DBG’s YouTube channel (@DevelopmentBankGhana) whiles the audio version is available on online streaming platforms including Spotify, Apple Podcasts and Google Podcast.

Touching on the relevance of the initiative, K. Duker, Chief Executive Officer of DBG mentioned that the challenges faced by businesses, especially SMEs, include lack of access to capital, regulatory bottlenecks, little or no capacity building. He stated that unfortunately there is no one person with the answer to all these challenges and therefore called for collaboration from all captains of industry and leaders of institutions to dialogue and find sustainable solutions to the challenges. “There is a complex problem out there and there is no one messiah, but the fact that we are beginning to have these discussions is so important because all these issues can be resolved by people collaborating. I urge all who are interested in this country’s economic transformation to watch every episode of DBG Connect.

DBG Connect can be accessed on DBG’s official youtube channel: @developmentbankghana. For more information, kindly check out DBG’s social media accounts via the following handles:

LinkedIn: @development bank ghana

Facebook: @development bank ghana

Twitter: @devbankghana

Instagram: @devbankghana

 

35 Financial Institutions Trained On Social Management Risk by DBG, World Bank & MoF

Development Bank Ghana has organized a workshop for financial institutions in efforts to building a robust banking sector with a well-implemented environmental and social management system. The five-day workshop, organized by DBG in partnership with the World Bank and the Ministry of Finance, seeks to sensitize environmental and social principal officers drawn from over 35 financial institutions comply with the Bank of Ghana’s Sustainable Banking Principles, thereby positioning them to receive development financing from DBG.

At the official opening of the Training of Trainers Workshop in Koforidua, Eastern Region, on Tuesday, DBG CEO Kwamina Duker expressed the bank’s commitment to strengthening the environmental and social management capacity of Ghana’s financial institutions and their stakeholders.

He expressed hope that the training would equip DBG’s partner financial institutions and potential partners to evaluate and mitigate their credit decisions on the environment.

“We also hope that the sessions over the next few days will fully equip DBG’s partner financial institutions and potential partners to evaluate and mitigate the inherent E&S exposures in their credit decisions. This program, we hope, will serve to accelerate the compliance of our banks with the Bank of Ghana Sustainable Banking Principles and better position them to receive development financing from DBG,” the CEO of DBG expressed hope. Mr. Duker acknowledged that their projects hinge on the intricate interplay between development initiatives, environmental, and social impact.

“At the heart of DBG’s mission lies a deep acknowledgment of the environmental and social dimensions of development. We recognize that responsible and sustainable development is a fundamental necessity. Our economic progress, the well-being of our communities, and the success of our projects all hinge on the intricate interplay between development initiatives and environmental and social impact.”

John Boateng Akuoko-Tawiah, Head of ESG, Sustainability, and Climate Finance at DBG, emphasised the need for the bank to build the capacity of the financial institutions.

“As a development bank whose mandate also includes building the ecosystem in terms of building capacity within the financial institutions’ players, we believe that being able to provide additionality to the private sector is a very important task which eventually will build the financial capacity for these institutions to evaluate the environmental exposure that exists in investments and credit decisions they make,” He added.

Carlos Leonardo Vicente, Senior Financial Sector Economist at the World Bank, expressed hope that the participants would be equipped with the necessary tools to aid their work, expressing gratitude to DBG and the Ministry of Finance for joining forces to train staff in the banking sector. “I hope that the training will exceed your expectations. Let me express my gratitude to DBG and the Ministry of Finance for joining forces with the World Bank to make this training a reality,” he said.

Andy Ameckson, Head of the Banking and Non-Banking Unit at the Ministry of Finance, underscored the importance of building a robust financial banking sector, citing DBG’s agenda of nurturing businesses. “It is a known fact that for any nation to flourish, its financial architecture needs to be robust, inclusive, and dynamic. And the Development Bank Ghana, I believe, is the fulcrum around which this architecture pivots. It is not just about providing credit or helping commercial banks nurture businesses, but about crafting an environment where dreams find wings, and visionaries find means,” he stated.

DBG is a Development Finance Institution established by the government of Ghana to facilitate and strengthen long term financing to the Ghanaian businesses along with delivery of appropriate non-financial services to strengthen the ecosystem in which businesses operate. The Bank ensures that sustainable and global best practices are applied across all of its operations.

Source: citinewsoom.com

DBG Provides GHS10M Support To Access Bank Ghana To Boost SME Digital Financing Platform

Accra, 31 October 2023Access Bank Ghana has taken a significant step by securing an initial GHS10m support from Development Bank Ghana (DBG) to facilitate access to essential funding for Small and Medium Enterprises (SMEs). This is in recognition of the indispensable role SMEs play by being the very backbone of thriving economies around the world, being pivotal in generating employment and fostering innovation.

This crucial support is earmarked to enhance Access Bank’s digital platform designed to provide SMEs with unprecedented access to funding. The platform, built by the partner financial institution was meticulously crafted in collaboration with Development Bank Ghana to address the unique needs and challenges faced by SMEs in Ghana.

The digital platform offers SMEs streamlined access to loans, with a cap of GHS200,000 per transaction, ensuring broad accessibility for various business needs. It revolutionizes the loan approval and disbursement process, promising a turnaround time of just 72 hours as opposed to the traditional timeframe of four to six weeks. In a move to foster inclusivity, the platform is open to all SMEs, not just those currently banking with Access Bank. This inclusive approach significantly broadens the platform’s reach and impact.

This collaboration between Access Bank and DBG unlocks a treasure trove of opportunities for SMEs in sectors like Agribusiness, Manufacturing, ICT, Tourism, and Healthcare. The platform not only simplifies the financing process but also acts as a catalyst for SMEs looking to scale and innovate in their respective sectors.

Commenting on the DBG funding, Olumide Olatunji, the Chief Executive Officer of Access Bank said, “This partnership with DBG is a testament to our commitment to SMEs in Ghana. By offering a streamlined digital solution, we aim to propel our SMEs to new heights, empowering them to compete and thrive in the global marketplace.”

DBG’s wholesale banking model has engendered partnerships with commercial banks and agencies seeking support for the growth of the SME sector such as Access Bank. Through the collaborations, DBG aims to catalyse the transformation of the economy by providing long-term capital and capacity building to SMEs in its key focus areas of Agribusiness, Manufacturing, High Value Services and ICT.

Reflecting on the partnership, K. Duker, Chief Executive Officer of DBG, said, “our collaboration with Access Bank underscores DBG’s unwavering commitment to the future of SME financing in Ghana. Through our involvement in the SME Financial Empowerment (SFE) platform and our financial backing, we are setting the stage for a new era. It is imperative for SMEs to recognize this trust by ensuring diligent loan repayments, establishing a thriving and sustainable financial ecosystem. DBG is not stopping here. The Bank is committed to providing continuous support to the platform, always aligning with its strategic objectives and the broader goal of empowering SMEs to be formidable players in the economy.”

Operating from 54 business locations across the country with over 3000 agents, Access Bank continues to build solid long-term relationships with customers based on trust, digital innovation, good customer service and transparency. Access Bank has over the years developed a deep understanding of its customers, delivering excellent services and empowering them to achieve more through financial inclusion and digital innovation.

Development Bank Ghana is a wholesale financial institution established by the Government of Ghana. DBG acts as a provider of long-term capital to the market with a mission to foster strong partnerships to finance economic growth, create jobs, and build capacity for SMEs. The organisation is committed, aligned and strengthened to achieve UN Sustainable Goals (SDGs) ambitions and targets while implementing environmental, social, and governance (ESG) strategy aimed at creating shared value and impact with purpose.