Accra, Ghana – In a significant engagement underscoring international collaboration for sustainable development, the Development Bank Ghana (DBG) hosted a distinguished delegation from Germany’s Bundestag (Federal Parliament).

The German delegation was led by Volkmar Klein, MP, representing the State of North Rhine-Westphalia, and Lutz Lienenkämper, the State’s former Finance Minister. They were joined by Ramona Simon, Deputy Head of Cooperation at the German Embassy in Ghana, alongside KfW Development Bank’s officials, namely, Sarah Christin Petrenz, Senior Portfolio Manager, and Isaac Hagan, Portfolio Coordinator – Financial Sector, representing the German state-owned development bank’s Accra office.  

Discussions during the meeting spanned DBG’s forward-looking initiatives, including the Green Finance & Investment Facility and the DBG Guarantee product, highlighting DBG’s commitment to fostering economic resilience and sustainability.

The Green Credit Line (financed by the German Federal Ministry for Economic Cooperation and Development (BMZ), implemented by KfW) is envisaged to start implementation in the second quarter of 2024 in Ghana, and is expected to complement DBG’s efforts in green financing.

A focal point of the visit was the introduction of the upcoming 3i Africa Summit, slated for May 13th-15th, 2024, in Accra.

This summit promises to be a ground-breaking event, focusing on technology opportunities within Africa’s financial sector.It aims to explore market dynamics, the leapfrogging of legacy technologies, and the crucial dialogues needed at the intersection of policy, finance, and technology. With a core emphasis on inclusion and sustainability, the 3i Africa Summit aspires to drive meaningful discourse and actionable insights for the continent’s financial ecosystem.

The DBG team, led by Deputy Chief Executive Officer, Michael Mensah-Baah and key officials such as Chief Risk Officer, Dr Prince Adjei, and heads of various strategic departments, shared insights into DBG’s operational strategies and its vision for a transformative impact in collaboration with its partners.

Reflecting on the discussions, Michael Mensah-Baah remarked, “The German Government, through KfW has been very supportive of DBG and its efforts to foster economic growth by empowering local businesses. We have had fruitful discussions on our operations, our agenda for 2024 and how we are positioned for greater impact through our lending activities and technical assistance to local businesses in collaboration with our partner banks and agencies respectively. We look forward to our on-going collaboration and believe that together with our German partners, we will be able to deliver significant transformation. We are primed for this.”

Mr Volkmar Klein, MP from the German State of North Rhine-Westphalia on the other hand, commended DBG on the work it is doing and how far it has come.

Deputy Chief Executive Officer (CEO) of the Development Bank Ghana (DBG), Michael Mensah-Baah, has announced plans by the wholesale, long-term capital provider to commit some GHS 1bn to financing women-led businesses in the country. 

The allocated GHS 1bn which forms 10% of DBG’s total funding, will be disbursed by the Bank’s Partner Financial Institutions (PFIs) over a period of three to five years.  

Making the disclosure during the Stakeholder Workshop on Barriers and Opportunities to Women’s Access to Finances in Ghana in partnership with Investment Climate Reform Facility, Mr Mensah-Baah averred women-led businesses are a core part of DBG’s focus in providing patient capital to businesses. He further stated that, DBG is committed to ensuring that 20% of all the businesses that receive DBG funding are owned by women.  

“Women-led businesses are a core part of DBG’s focus. Firstly, as a minimum, DBG is committed to using a minimum of 10% of its funding to support women-led businesses. This works out to over GHS 1bn to be invested in women-led businesses in the next 3 to 5 years,” he stated. 

Small and medium enterprises (SMEs) as well as local corporates constitute more than 90% of businesses in Ghana yet are only able to access less than 10% of their financial needs through financial institutions. Per the Mastercard Index of Women’s Entrepreneurship (MIWE), 46.4% of businesses in Ghana are owned by women. Despite the critical role women play in economic development, access to finance has been a major constraint for women-owned businesses.  

With an estimated $42 billion financing shortfall for African women-owned businesses as estimated by the AfDB across all value chains, women entrepreneurs encounter various obstacles when accessing finance. The limited access to finance by women entrepreneurs translates into constrained overall economic growth and resilience and lost opportunities for all. 

Speaking further at the Stakeholder Engagement, Mr Mensah-Baah indicated that the Gender Mainstreaming Accelerator Programme (GMAP) which aims to provide capacity-building programs for targeted Partner Financial Institutions (PFIs) of DBG, presents a platform for creating a more equitable and inclusive financial ecosystem that serves the needs of all Ghanaians, particularly our women entrepreneurs. 

DBG is at the moment actively involved in capacity-building programs aimed at empowering women and youth-led businesses. Through these initiatives, over 1,850 women have been provided with essential training and support, equipping them with the skills and knowledge needed to thrive in the financial landscape. 

Furthermore, DBG’s participation in initiatives such as the 2X Challenge underscores its dedication to advancing women’s economic empowerment. By joining this initiative as its 100th member, DBG is contributing to the mobilization of capital for projects that directly benefit women entrepreneurs, leaders, and stakeholders, thus amplifying their impact on the economy. 

Additionally, DBG has endorsed the Women’s Empowerment Principles (WEPS), further solidifying its commitment to promoting gender equality and women’s empowerment. 

By adhering to these principles, DBG is actively working to create a more inclusive workplace, marketplace, and community, where women have equal opportunities to thrive and succeed. 

This goes a long way to show the importance DBG attaches to fostering a culture of diversity, equity, and inclusion, ultimately contributing to the sustainable development and prosperity of our nation.