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

DBG, World Bank, MoF Train Financial Institutions On Social Management Risk

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.

 

DBG PARTNERS SINAPI ABA SAVINGS & LOANS TO REACH GRASSROOTS

Accra, 02 October 2023 – The Development Bank Ghana (DBG) has added Sinapi Aba Savings & Loans Ltd to its list of strategic partners through who it lends to local businesses. DBG since commencing operations in June 2022 has been forming strategic alliances with key Participation Financial Institutions (PFI) including universal banks in order to be able to support the Micro, Small and Medium Enterprises (MSMEs) sector.

Sinapi Aba is the first Savings & Loans company to be onboarded as a PFI by DBG owing to the former’s rich, credible, and trusted reputation in delivering proven financial services to MSMEs and individuals who may have limited access to traditional banking services.

The partnership between the two institutions will afford DBG the opportunity to tap into Sinapi Aba’s network of forty-four branches located in 14 of the 16 regions of Ghana. This will further offer DBG the window to reach the 65 percent of Sinapi Aba Saving & Loans’ customers who are in the rural areas and to support with much-needed long-term capital to bring about business growth and expansion. Sinapi Aba on the other hand will receive wholesale capital which it will on-lend to its base of MSME customers, majority of whom are in the rural areas as patient-capital.

Highlighting the relevance of the partnership, Mr. K. Duker, Chief Executive Officer of Development Bank Ghana, indicated that the partnership with Sinapi Aba allows the Bank to reach an untapped target group, which are the grassroot businesses who are also a vital component of the whole MSME sector. According to Mr. Duker, the partnership will among many other benefits bring about enhanced access to financial support to local businesses, business growth opportunities, capacity building, and preservation of livelihood especially among the lower-income strata communities.

In his remarks, Mr. Anthony Gyasi Fosu, CEO of Sinapi Aba Savings and Loans, who, together with his management team, paid a working visit to the office of DBG, also mentioned that the alliance with DBG opens a new door of offering long-term patient capital to the numerous local businesses who desire facilities with longer time span to allow them grow their businesses and return value to their stakeholders. He also added that “the acknowledgment by DBG of Sinapi Aba’s pivotal role in the noble mission of building lives through financial inclusion and empowerment stands as a profound endorsement of our enduring commitment spanning 29 years. This recognition underscores our capacity to broaden financial access across a more extensive market, augmenting our capacity to provide enhanced financial solutions.”

Sinapi Aba Savings and Loans Ltd. has been licensed and supervised by the Bank of Ghana since 2013. Sinapi Aba is committed to providing innovative financial solutions and training to entrepreneurs in MSMEs in Ghana to improve their business and enhance income-generating opportunities for the economically disadvantaged to improve their standard of living and positively transform their lives. The company focuses on Agriculture, Business, Housing, and Education.

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.

 

DBG and GEA Partner to Empower 3200 Women-Led MSMEs for Sustainable Growth

In a collaboration for economic empowerment, Development Bank Ghana (DBG) has partnered with the Ghana Enterprises Agency (GEA) through a Memorandum of Understanding (MOU) signed in June 2022. This strategic partnership is geared towards the upliftment of women-led Micro, Small, and Medium Enterprises (MSMEs) by enhancing their business capacities and driving sustainable growth.

As a significant component of the MOU, DBG and GEA has organised comprehensive capacity-building programs tailored for MSMEs. These initiatives are designed to address the challenges that often impede the growth prospects of these enterprises. By equipping them with essential skills and streamlining their business processes, these training programs aim to accelerate their development.

One of the primary goals of this training is to enhance the technical competencies of these MSMEs and optimize their operational efficiency. By doing so, DBG and GEA intend to improve the product quality and productivity of these enterprises. This, in turn, will create employment opportunities, enhance livelihoods, and contribute to broader economic growth. This multifaceted initiative, known as the Enterprise Growth Project (EGP), offers a holistic approach to supporting entrepreneurs. DBG and GEA, through the EGP, facilitate access to crucial Business Development Services, Market opportunities, and Finance resources. These combined efforts are geared towards fostering an environment conducive to growth, innovation, and economic prosperity.

At the heart of this partnership is a commitment to training up to 3200 Women-Led MSMEs across all 16 regions of Ghana. The comprehensive training program encompasses essential aspects of business management, including:

  1. Business Planning Process
  2. Financial Management
  3. Marketing Strategies, including Advertising, Promotion, and Effective Use of Social Media

The anticipated outcomes of this impactful endeavor are nothing short of remarkable. DBG and GEA envision a future where:

  1. 3200 Women MSMEs across all regions are equipped with the knowledge and skills needed for business excellence.
  2. 1000 of these MSMEs are onboarded onto the GIFE Platform and certified on Sustainable Finance and Entrepreneurship (SFE).
  3. The creation of 1200 sustainable jobs to empower local communities.
  4. DBG’s mission to promote economic growth and sustainability is bolstered through an extended and diverse network.

In its initial phase, this transformative program focuses on training 1200 women-owned/led businesses operating in the agribusiness, manufacturing, and high-value sectors. These immersive training sessions will take the form of one-day workshops held across **30 districts** spanning six regions: Greater Accra, Central, Eastern, Western, Oti, and Volta Regions. Each workshop will host up to 40 participants, ensuring personalized attention and effective knowledge transfer.

The DBG and GEA partnership stands as a testament to their commitment to fostering inclusive economic growth, supporting women entrepreneurs, and driving lasting positive change in the Ghanaian business landscape.

Stay tuned for updates on the progress of this remarkable initiative as it unfolds, empowering women-led MSMEs and fueling Ghana’s journey towards economic prosperity and sustainability.

 

ENSURE SUSTAINABILITY IN YOUR BUSINESSES – DBG DCEO

Accra, 31 August 2023 – The Deputy Chief Executive Officer of Development Bank Ghana (DBG), Mr. Michael Mensah-Baah, has charged local businesses to consider the importance of ensuring sustainable growth in their businesses. The Deputy CEO made the statement whiles delivering a speech during a one-day seminar in Accra organised by Fidelity Bank Ghana in partnership with the Federation of Associations of Ghanaian Exporters, Eco. Business Fund, and DBG under the theme “Empowering Businesses to drive sustainable growth through compliance to regulatory and environmental principles – The Agric and Export perspective.”

The seminar which attracted over two hundred participants was aimed at echoing the essence of regulatory compliance, promote sustainability and ESG principles among local businesses in the agricultural and export sector. The seminar also featured various presentations, an interactive panel discussion, and lectures from sector experts who shared valuable insights on topics ranging from ‘understanding the regulatory landscape’, to ‘integrating sustainability into business operations’ and ‘tax compliance for agriculture and export businesses’ among others.

The agricultural export industry has been a significant contributor to the country’s total Non-Traditional Exports (NTE) with the exportation of key agricultural products such as cashew nuts, cocoa seeds and beans, peanuts, groundnuts, and other kinds of farm produce. According to the Ghana Export Promotion Authority’s annual report on Ghana’s Non-Traditional Exports (NTE) for the year 2022, the agricultural sub-sector contributed 14.4 percent of the total NTE earnings for the year reviewed.

Delivering his remarks, Mr. Mensah-Baah, emphasised on DBG’s mission of accelerating an inclusive and sustainable economic transformation agenda by fostering the growth of a competitive private sector and also ensuring that the Bank’s interventions lead to sustainable transformation. He added that, the Bank is currently pursuing a sustainability standard certification index which is a green rating for deploying sustainable governance principles across the organisations the Bank works with.

According to the Deputy CEO, “the Bank does not only support the private sector by providing long-term patient capital, but we also complement that effort with the provision of technical capabilities training and sharing knowledge about the environment in which the businesses operate in, including the need to have a strong governance framework.”

In attendance were representatives from the Federation of Associations of Ghanaian Exporters (FAGE), members of the National Farmers and Fishermen Winners Association, and producers, including commercial farmers involved in the agricultural and export sector.

Following this training event, two other seminars have been held in Sunyani and Takoradi in the Bono and Western Regions respectively for the same target group. Structured just as the earlier one, the two seminars offered capacity building to the attendees.

Development Bank Ghana (DBG) is a Development Finance Institution established by the Government of Ghana, in accordance with the Development Finance Act, 2020. DBG acts as an enabler for businesses in Ghana and as a long-term capital provider in the market. DBG’s mission is to foster strong partnerships to finance economic growth, create jobs and build capacity for SMEs, and to provide long-term financing and de-risking services underpinned by technology and evidence-based research/insights. DBG aims to promote Environment, Social and Governance (ESG) excellence within the businesses the bank supports. The bank has received funds from the World Bank, European Investment Bank, Kreditanstalt Für Wiederaufbau (KfW), and the African Development Bank.

We Are Committed To Building Bankable And Competitve Businesses

Mr. Kwamina Duker, the Chief Executive Officer of Development Bank Ghana, has reiterated his outfit’s commitment to supporting and building bankable and competitive local businesses that can pit their strength against consumer alternatives coming mostly from foreign markets. He was speaking at the 30th Annual Meeting of the African Export-Import Bank (Afreximbank) in Accra, as a panelist during a plenary discussion with other distinguished industry captains, development experts and policy makers on the topic “Leveraging the Power of Intra-African Trade for Commodity Based Industrialisation”.

The panel discussions, which were a part of a series of sessions at the gathering sought to highlight the peculiar challenges that beset African economies when it comes to adding value to the extracted raw materials before being exported to foreign markets. The objective of the discussions was to find ways to break the cycle of exporting unfinished goods and importing finished products much to the detriment of the respective African economies and also on how to take control of Africa’s commodities and expand the value chain systems so as to be able to create the necessary socio-economic development.

In addressing how small to medium size enterprises are being integrated into the industrialisation process, Mr. Duker indicated that for a very long time the focus has been on the extractive sector and that has caused little investment into human capital, thus denying us the opportunity of moving up the value chain. According to DBG’s Chief Executive Officer, “moving up the value chain is critical but also complex because once you move up from the extraction or the out-grower phase, you come into the market forces phase which you must be able to respect in order to thrive”.

He added that, “for us as a development bank, we are focused on changing mindsets of the local businesses and making them bankable businesses that can be competitive on the global market.” He further explained that, it is essential for business that have been able to move up the value chain to have a mindset to compete especially due to alternatives consumers are presented with on the market and to achieve that, such businesses must be bankable so as to overcome the market forces.

In addition, Mr. Duker emphasised the importance of setting a “criteria for success” for local businesses where, businesses after a period of receiving support, must be able to take-off and run by themselves so as to achieve sustainable prosperity. According to him, this will be a measure of success of the investment placed into such businesses.

Other panelists for session on “Leveraging the Power of Intra-African Trade for Commodity Based Industrialisation” were Professor Théophile T. Azomahou, Executive Director, Africa Economic Research Consortium, Dr. Carlos Lopez, a Professor  at the University of Cape Town, Ms. Florie Liser, President & CEO, Corporate Council on Africa, Ms. Ahunna Eziakonwa, UNDP Assistant Administrator & Regional Director for Africa, Mr. Antonio Pedro, Acting Secretary, United Nations Economic Commission for Africa and Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade, Afreximbank.

DBG Committed To Investing In Woman-Led Businesses

Accra, 31 July 2023 – The Development Bank Ghana (DBG) in partnership with The African Network of Entrepreneurs (TANOE) has embarked on a capacity building training targeted at women-owned and women-led business across the country. The campaign aims to reach out to a set target of five thousand (5,000) women equipping them with technical assistance and access to financial support to enhance the credit worthiness of their businesses, facilitate job creation and ensure long-term continuous growth and sustainability.

The campaign, dubbed ‘WomanRising 5000’ is a women’s economic impact project aimed at empowering women entrepreneurs with the necessary tools and resources to help them succeed in their respective businesses, expand their operations, increase their staff strength, and build systems and structures to ensure longevity of their businesses.

In line with achieving the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 5, DBG is poised to ensure the full and effective participation of women as well as equal opportunities for leadership at all levels of decision-making and gender balance across all levels of management. It is against this background that DBG aligned with TANOE to invest in women entrepreneurs and help them increase their capacities with regards to their businesses.

Commenting on this, Deputy Chief Executive Officer of DBG, Michael Mensah-Baah said that “as a bank, we are interested and committed to the improvement of women-led and women-owned businesses. We acknowledge that we can achieve this by tackling the foundations, which is providing first the knowledge and education needed to bring about the desired transformation, and after that, provide the means by which these entrepreneurs can access the finances to scale-up their businesses.”

In Ghana, women-led businesses have contributed significantly to the growth and development of the economy, accounting for forty-four percent (44%) of all micro, small and medium enterprises in the country. The contribution of women-businesses in Ghana is further emphasised in the MasterCard Index of Women Entrepreneurs which in 2020 ranked Ghana (36.5 percent) among the world’s three leading economies with most women-owned businesses with Uganda (39.6 percent) and Botswana (38.5 percent).

Through this campaign, women entrepreneurs were offered a range of resources including access to finance, training programs, mentorship opportunities and networking events. By providing these resources, DBG and TANOE aimed to ensure that women entrepreneurs were equipped to overcome the unique challenges they face in the business world.

The first phase of the capacity building programme was concluded in the month of July with over five hundred women entrepreneurs participating in various training sessions that took place across five regions, namely, Greater Accra, Ashanti, Central, Western and Volta.

TANOE has over the years been and remains focused on entrepreneurship as a sustainable solution to unemployment through training and empowering students and the youth to develop their talents, entrepreneurial abilities and skills, supporting women and start-up entrepreneurs with resources and relevant information to sustain and grow their businesses.

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.

DBG and GIRSAL Partner To Sponsor Bankers To Learn From Kenya’s VegPro

Agriculture plays a crucial role in Ghana’s economy, contributing significantly to the country’s Gross Domestic Product (GDP).Despite its enormous growth potential, only 4% of bank loans are directed towards the sector. To tackle this challenge, Ghana Incentive-Based Risk-Sharing System for Agriculture Lending (GIRSAL) has set up a Technical Assistance Facility aimed at increasing financial institutions’ lending to the agriculture sector. This is achieved through training programs and study tours that enhance their knowledge of agriculture and Agri-financing.

GIRSAL recently partnered with the Development Bank Ghana (DBG) to sponsor a study tour for seven Ghanaian bankers.

The tour was fully sponsored and aimed at enabling participants to learn from Kenya’s VegPro Group, a renowned player in the sector. The selected participants were drawn from the 2022 Agriculture and Agribusiness Lending Training cohort, based on their exceptional performance in an essay challenge that tested their knowledge of the agricultural sector.          The Agriculture and Agribusiness Lending Training Course provides extensive training on agriculture and agribusiness financing to financial institution professionals such as agriculture desk officers, relationship managers, credit risk officers, and credit analysts. The course is delivered in partnership with the National Banking College, with DBG’s support.

Since its inception, 439 staff from 27 institutions have participated in the training course. GIRSAL and Development Bank Ghana have jointly funded four training cohorts since 2022, with two more scheduled for 2023.

These interventions are examples of programs meant to deliver on the mandates and strategic aims of the sponsoring partners, GIRSAL and DBG. GIRSAL’s mandate is to de-risk agricultural financing and to stimulate increased lending from financial institutions to the agricultural sector.

The institution also provides technical support to financiers to assess, structure and manage agric loans. DBG, on the other hand, supports financial institutions to provide long-term funding and advisory services to Ghanaian businesses and still is committed to accelerating inclusive and sustainable economic transformation by fostering the growth of a competitive private sector.

 

About VegPro Group                                                                                                                                                                                                                                                                                     

VegPro Group is a leading agribusiness firm in Kenya that has been in operation for over 30 years. The firm has a strong horticultural division that produces, processes, and exports fresh produce and flowers for export to the UK, Europe, and parts of Asia.

Gorge Farm, one of VegPro’s subsidiary farms, produces a wide range of vegetables, fruits, and flowers and uses waste products to produce energy through its biogas operation. VegPro’s Nairobi processing facility employs over 1600 staff, mostly women, and runs a 24-hour shifts system to meet export demand.

Source: Citinewsroom.com

Development Bank Loan Book Hits GHS 302M – Poised To Boost SME Growth

The Development Bank Ghana (DBG) has increased its loan book size to GH₵302 million since its establishment last year. In the first quarter of this year, however, the bank has already disbursed an amount of GH₵57.2 to three participating financial institutions (PFIs) for onward lending to businesses in the agriculture and manufacturing sectors.

The CEO of the DBG, K. Duker, who made this known said the move was in line with the bank’s agenda of spurring the growth of Small and Medium Enterprises (SMEs) in the country.

“Our priority is to accelerate lending activities and we have committed to disbursing at least ₵600 million in loans for on-lending to SMEs this year,” he said. Mr Duker was speaking at an event organised by the DBG and the Ghana Association of Banks (GAB) in Accra on the theme; “Ghana’s Medium-Term Outlook, Navigating through Economic Uncertainties and an IMF Programme”.

“In the first quarter of the year, we increased our lending portfolio by disbursing GH₵57.2 million to three PFIs for onward lending to businesses in the Agriculture and Manufacturing sectors, bringing our loan book size to GH₵302 million,” he said.

Additionally, he said the bank had provided capacity building for 644 local businesses, including 444 young entrepreneurs, and 52 staff from 13 financial institutions during the quarter.

The training, he said, focused on various aspects of business management, entrepreneurship, and specialised lending to improve the sustainability and growth potential of SMEs, as well as enhance the lending capabilities of PFIs.

“We possess the capacity to provide additional loans to back sustainable projects as they are presented to us, demonstrating our unwavering dedication to growing with our partners and the bank will focus on sectors with high growth potential and significant social and environmental impact, such as agribusiness, manufacturing, and low-carbon and climate-resilient investments,” he said.

In addition, Mr. Duker  said the bank was working to increase its PFI network after onboarding Zenith Bank this year.

“We have completed due diligence and are on course to onboard Ecobank and Absa as new PFIs this month. DBG will continue to identify and onboard new PFIs to enhance our reach and ability to support SMEs across the country as we seek to have at least 10 PFIs by the end of the year,” he said.

He said another priority was to enhance the bank’s capacity-building initiatives. As a result, he said the bank would intensify efforts to provide training and support to SMEs and PFIs, equipping them with the necessary skills and knowledge to succeed in their respective sectors.

Mr. Duker said it would include offering training on business management, financial planning and environmental and social risk management to 15,000 businesses and entrepreneurs.

 

Source: Graphic Online