DBG commits to resolve bottle necks limiting economic resilience

Development Bank Ghana (DBG) has indicated that it is committed to enhancing strategic measures to resolve the bottle necks that limit economic resilience in the country.

The Development Bank explains that stimulation techniques towards economic transformation must be championed across all sectors of the economy including agricultural to spur economic growth.

Speaking at the DBG- UGBS Development Finance Dialogue Series in Accra, the Deputy Chief Executive Officer of the Development Bank Ghana, Michael Mensah- Baah assured of the bank’s preparedness in building a financial ecosystem that will inspire women and young entrepreneurs towards inclusive growth.

“We know as DBG that to create economic resilience and accelerate social mobility, we must champion the role of Knowledge, Innovation and be able to measure impact of our interventions, The word inclusive is also extremely important; we cannot all benefit and thrive if some groups are underserved,”

“Supporting Women-led businesses, for example, is a core part of DBG’s focus. We are partnering with Ghana Enterprise Agency to support female entrepreneurs through providing customized capacity building for women led businesses. We are also focusing on supporting young entrepreneurs; there is enormous potential here,”

Michael Mensah- Baah further highlighted DBG’s investment support already activated to support food security in Ghana.

“We have already invested 300 million cedis to local Industries and we have also committed half a billion cedis to long term funding to be invested in the maize, soyabean and poultry value chain in the next 12 to 18 months,” he said.

Meanwhile, an Associate professor at the university of Ghana Business School, Professor Vera Fiador is urging stakeholders to leverage on development financing to address the structural gaps in the financial market.

“Our markets are not really structured to provide us with the needed access to finance that is seen in developed economies. The private sector capital market work quite efficiently at such places, so they always evolve and come out with products,” she said.

“In our case, we have not gotten to that stage yet so development finance tries to bridge the gaps: So if we could harness development finance adequately, then we will get to the point where we will be able to develop the various markets that will speak to both the public and private sector needs,” he added.

On his part, the Chief Executive Officer of Consolidated Bank Ghana, Daniel Addo, underscored the need for innovation in rolling out development finance.

The DBG- UGBS Development Finance Dialogue Series under theme: Deepening Development Finance Knowledge, Innovation and Impact was preceded with the signing of a MoU between the Development Bank Ghana and the University of Ghana Business School to bridge the gap between industry and academic research policy.

Source: Citibusinessnews.com

DBG to invest GH¢500m in key commodities to enhance food security

Deputy CEO of Development Bank Ghana, Michael Mensah-Baah, says the bank will invest half a billion cedis in four key commodities by the end of 2023. This brings the total investment since its launch to about GH¢800million.

He made this known in a keynote address at the DBG-University of Ghana Business School (UGBS) Development Finance Series MoU Signing and Roundtable Meeting held at the university.

Mr. Mensah-Baah disclosed that DBG had given out loans of up to GH¢300million, providing technical assistance to over 1,000 local businesses in the process. In 2022, DBG invested up to GH¢300million in key priority sectors – agribusiness, manufacturing and tourism. However, the company is looking to invest even more in the coming years to improve food security in Ghana by investing half a billion cedis (GH¢500million) in four key commodities: soya, maize, rice and poultry.

“Last year, we actually invested in Agri business, manufacturing and tourism up to GH¢300million. We intend to invest half a billion cedis into four key commodities – soya, maize, rice and poultry. This will enhance food security in Ghana.”

DBG believes that these investments will generate successful returns, which will enhance food security in Ghana. Mr. Baah noted that the bank’s business model allows it to leverage existing infrastructure and networks of banks and financial institutions which partner with it to provide business advisory services and training in addition to financing.

Small business owners in Ghana often lack access to the capital they need to grow and are often considered too risky by banks. DBG’s wholesale banking model seeks to alleviate this bottleneck and provide long-term, competitively priced loans that can drive sustainable growth and transform the Ghanaian economy.

He further highlighted the critical need to address lack of the long-term financing that drives sustainable growth; noting this is crucial to creating the right enabling environment and unleashing the youths’ potential. He said: “DBG has been designed to help relieve the bottlenecks that have hindered the availability of long-term, competitively priced loans to small and medium-sized enterprises in Ghana.

“DBG has adopted a wholesale banking model, providing funding to eligible financial institutions to on-lend to Ghanaian businesses in targeted industry sectors.

“A key enabler for scaling up DBG’s impact is the use of digitalisation. To this end, DBG will be using its recently launched digital platform, the Ghana Integrated Financial Ecosystem (GIFE), to deliver financial literacy capacity building to students. This platform is being developed through a collaboration between the Monetary Authority of Singapore, Bank of Ghana and DBG. The platform, when completed, will enable the end-to-end capability required by local businesses.”

Mr. Mensah-Baah also reiterated DBG’s commitment to making developmental interventions that are grounded in research, noting that the company seeks to collaborate with the University of Ghana on research areas which provide evidence-based challenges to policymakers and other key stakeholders.

DBG is also working with the university to introduce scholarships for less fortunate young men and women who wish to pursue MSc programme in Development Finance programme.

Source: bftonline.com

 

DBG Collaborates With University of Ghana Business School On Development Finance

Development Bank Ghana (DBG) has entered into a strategic partnership with the University of Ghana Business School (UGBS) in a move that underscores the financial institution’s commitment to advancing development finance and supporting youth-led businesses, promoting corporate social responsibility, undertaking research and driving policy reforms.

This collaboration comes at a time when there is a renewed focus on leveraging the power of partnerships to drive growth, innovation and impact across industries and sectors.

As part of the partnership, DBG seeks to enhance its thought leadership capabilities by tapping into the expertise of UGBS’ faculty, students and alumni, as well as by leveraging the institution’s research capabilities and industry connections. The collaboration will provide DBG with a platform to showcase its leadership and expertise in development finance, while also promoting best practices and new thinking in this field. Through this partnership, DBG seeks to open up discussions, stimulate research and engage in knowledge-sharing to foster economic growth, create jobs and build capacity for small and medium-sized enterprises (SMEs) in Ghana.

DBG’s focus on supporting youth-led businesses is a key component of its mandate. The institution recognizes the importance of young entrepreneurs in driving economic growth and development, and aims to provide them with access to long-term capital and de-risking services, underpinned by technology and evidence-based research/insights. As part of the partnership, DBG will support the awarding of degrees in development finance to graduate students and offer internships to MSC development finance students. In addition, DBG will offer scholarships for underprivileged candidates who are interested in development finance, providing a pathway for talented young people to pursue careers in this field.

The partnership with UGBS will also provide an opportunity for DBG’s leadership to share their practical real-life experiences with students, serving as guest lecturers in the business school. This will offer students the chance to gain insights and perspectives from industry leaders and experts, building their knowledge and capacity in development finance.

The Roundtable Meeting, themed “Deepening Development Finance Knowledge, Innovations and Impact”, is a key highlight of the partnership between DBG and UGBS. The event featured prominent speakers such as Mr. Michael Mensah-Baah, Deputy CEO of DBG, Mr. Daniel Addo, CEO of CBG and Prof. Vera Ogeh Fiador, Associate Professor of Finance at UGBS.

DBG’s mission to foster strong partnerships to finance economic growth, create jobs and build capacity for SMEs is a critical component of its mandate. The institution’s focus on promoting Environment, Social and Governance (ESG) excellence within the businesses it supports is also commendable, as it underscores the importance of responsible and sustainable business practices in driving development.

The partnership between DBG and UGBS is a testament to the power of collaboration in driving growth and innovation. Through this partnership, both institutions will be able to leverage their respective strengths and expertise to drive impact and achieve sustainable development goals. This partnership serves as an example for other institutions and organizations to follow, highlighting the importance of working together to drive positive change and promote economic growth and development.

 

Source: https://norvanreports.com/dbg-and-ugbs-collaborate-to-deepen-development-finance-knowledge-build-capacity-for-smes/

Driving the Gender Policy Agenda

In February, a strategic gender policy workshop was held at Development Bank Ghana, with the management team under the guidance of the European Investment Bank (EIB) Technical Assistance. The team spearheaded the brainstorming and discussion sessions on Gender Finance and the role of DBG in the Ghanaian financial sector.

Highlight of the discussion was the insight into how Ghana had the highest rate of businesses owned by women worldwide (46.4%) and yet faced major challenges in accessing loans to grow their businesses.

Development Finance Institutions place a premium on gender equality in their development mandate to empower women; while driving the Sustainable Development Goal 5 (Achieve gender equality and empower all women and girls). As a result, lending to WSMEs through Partner Financial Institutions, is well placed to play a key role for higher financial inclusion in the market.

The workshop took stock of Ghana’s Gender Country Profile, reflected on Banks and MFI’s constraints in responding to Women-led enterprises, and brainstormed on what DBG can do. This resulted in DBG’s most likely key elements of a future Gender policy, from vision to implementation steps and impact evaluation.

Changing The Narrative…Development Bank Ghana Works To Improve Ghana’s Food Security Risk

In a demonstration of its commitment to provide and build capacity for Micro, Small and Medium Enterprises (MSMEs) in Ghana, Development Bank Ghana (DBG) launched the Value Chain Stakeholder Dialogue Series in March and proceeded to engage the stakeholders in a number of sessions.

Among the priority sectors of DBG, the agriculture-agribusiness sector is an extremely crucial part of the Bank’s core business. With food prices trending upward worldwide, the World Bank ranked Ghana as the country with the highest food prices in Sub-Saharan Africa. DBG and its key partners however share in the belief that addressing market failures in these critical food supply chains (i.e., maize, soya, poultry, and rice) through sustainable agricultural financing, policy, and regulatory reforms will ensure food security, reduce dependence on imports, create jobs (with particular attention to Sustainable Development Goal 5 ), and create long-term opportunities for Ghana to become a net exporter of grains and poultry. In addition, DBG plans to provide funding and risk-sharing facilities to MSMEs and Small Corporates through participating financial institutions.

While speaking at the Sunyani and Kumasi stakeholders’ events which focused on soya, maize and poultry, Dr Kwabena Opuni-Frimpong, DBG’s Chief Economist, reiterated the Bank’s willingness to catalyse the Ghanaian economy and had identified 12 key businesses within the soya and maize value chain. The maize and soya workshops had 6 major development partners (GIRSAL, Mastercard Foundation and ACET) and over 80 individuals from the crop associations participating.

The last session in this series will be held in Sogakope from 20th-22nd March and it will focus on the rice value chain.

DBG is a Development Finance Institution that acts as an enabler for businesses in Ghana and as a long-term capital provider in the market. It ensures that sustainable, global best practices are applied across its operations. DBG has the vision to accelerate inclusive and sustainable economic transformation by fostering the growth of a competitive private sector. DBG commenced operations in November 2021.

Development Bank Ghana To Accelerate Growth In Agricultural Sector

The Development Bank of Ghana (DBG) has announced its commitment to ensuring that the policy environment for the agricultural sector is production friendly. Chief Economist Dr Kwabena Opuni-Frimpong at a media engagement session noted that DBG is keen to identify how certain agricultural policies have impeded the growth of the sector. According to him, when these blockades are ascertained through various workshops across the country, a Bank’s policy advocacy team will employ an effective modus operandi to execute the cause. “DBG as a thought leader would have to also take up initiatives that support what other partners are doing within the sector. Now if we can help to unlock or solve the policy problem, it affects all of them and it becomes a public good from which everyone will benefit and that is one of the key things that DBG will ensure that the policy environment is right for the sector to operate more efficiently and productively,” he said on Thursday.

Dr Opuni was optimistic that the project would reduce the pricing of foodstuff on the market. He added, “Food inflation accounts for the huge inflation in the inflation basket. That is why we want to boost the production of foodstuff, especially of our staples which will affect the supply and demand. “If we increase the supply, then obviously prices will come down and that would make it easier for ordinary Ghanaians to purchase them,” he said.

On his part, the Deputy Chief Economist, Godwin Kojo Ayenor said the Bank has selected four value chain foods – poultry, rice, soyabean and maize as its focus to address the looming food insecurity threats. He noted that the investment in the aforementioned food chain is DBG’s contribution to support the government and the private sector in agricultural financing.

“For the economic structure that we want, we need to grow food and feed ourselves and then export the rest. The private sector needs to be competitive and government needs to create the enabling environment for that to happen,  DBG is here to identify the gaps and help create the enabling environment for the private sector to invest in the agric sector,” he said.

 

 

 

DBG Partners Access Bank Ghana to Train SMEs On Financial Literacy

Development Bank Ghana partnered with Access Bank Ghana PLC to undertake financial literacy capacity building workshop with the University of Cape Coast D-Hub (an initiative under the Office of the Vice Chancellor, seeks to develop change agents in its community, stimulate the establishment and growth of start-up firms and other businesses).

The event hosted over 176 members of the Ghana National Chamber of Commerce and Industry-Cape Coast Chapter and student entrepreneurs of the university.

The SMEs were taken through various financial literacy programs including the SME Financial Empowerment (SFE) which is an educational program for MSME businesses to build foundational digital financial literacy and understanding of essential financial services to thrive in the digital economy. There was also a session for environmental and social governance fundamentals for MSMEs to ensure sustainability.

DBG views partnerships as critical to the way it executes its work to develop and strengthen the soft and hard skills of its SME members to stay competitive, build resilience and grow their businesses sustainably.

DBG leads partnership of banks to tackle economy

DBG leads partnership of banks to tackle economy

Source: Business and Financial Times

Development Bank Ghana (DBG) plays a countercyclical role with universal banks to support local businesses when they need it the most.

In partnership with our universal banks, DBG is tirelessly working to bring support to our private sector in order to spur a quicker recovery leading to growth and sustainable prosperity for our local businesses.

Chief Executive Officers (CEOs) and Senior Executives of CalBank, Absa Bank, Consolidated Bank Ghana (CBG), GCB Bank, Fidelity Bank and Access Bank met to strategise on how the partnership with DBG can be strengthened and improved to benefit the nation. The meeting was hosted by DBG’s Chief Executive Officer, K. Duker.

In attendance were CEOs Philip Owiredu (CalBank); Kofi Adomakoh (GCB Bank); and Daniel Wilson Addo (CBG). The Senior Executives present were Thairu Ndungu, Deputy CEO (CBG); Ms. Amazing Grace Anim-Yeboah, Director Business Banking; and Mr. William Nettey, Head, Agribusiness (Absa); James Bruce, Head-Wholesale Banking and Solomon Ocquaye, Financial Institutions (Access Bank); Alex Agyei Amponsah, Director-Commercial and SME (Fidelity); Dzifa Nyansafo, Head of Credit (CalBank); Sam Aidoo, Director-Wholesale and Investment Banking and Linus Kumi, Head-Corporate Banking (GCB). Also in attendance were Dr. Yaw Ansu, Board Chairman of DBG; Kwesi Korboe, Chief Executive Officer of Ghana Incentive-based Risk Sharing System for Agricultural Lending (GIRSAL); and Michael Mensah-Baah, Deputy Managing Director-DBG.

This initiative dubbed the ‘DBG Economic Recovery Initiative’, has been fashioned out by the bank in line with its mandate to transform and develop the country’s economy by empowering the private sector.

The discussions centred on how DBG will work with commercial banks, GIRSAL and other partners to support the private sector with long-term capital in an efficient and effective manner. Areas of focus for the commercial banks include technology to build scale and efficiency, and advocacy to secure policy change in support of local industries and their related value-chain. It also includes building and increasing lending and developing prudential guidelines with associated safeguards to better realise DBG’s mandate.

DBG’s agenda for 2023 focuses on food security and seeks to offer long-term funding of GH¢500million to the agriculture sector, specifically for products like maize, soya, poultry and rice. There will be an additional GH¢500million funding for sectors like tourism and manufacturing. As has been the approach employed by DBG in empowering local businesses, the bank through its business partners – the Association of Ghana Industries (AGI), Ghana National Chamber of Commerce and Industry (GNCCI) and Ghana Chamber of Young Entrepreneurs (GCYE) – will provide technical assistance to 15,000 local businesses in order to build their capacity.

As part of DBG’s plans to deliver its mandate, the bank will this year introduce tailored solutions and further products for the benefit of local businesses. These will include Equity Funding and Partial Credit Guarantee.

Commenting on the bank’s economic recovery initiative, K. Duker, DBG’s Chief Executive said: “DBG remains focused on its agenda to empower local businesses in order to achieve a transformation of Ghana’s economy. Our Economic Recovery Initiative is primarily aimed at improving the already great partnerships that DBG has forged in its first year in order to achieve a higher level of success, which should see stronger local businesses who will form the backbone of our recovery and progress economically”.

Daniel Wilson Addo, CEO-CBG said: “There is no gainsaying the conspicuous fact that this initiative is very timely and should help all commercial banks to find ways of dealing with the challenges banks face currently, so as to enable us support the private sector better.

Kofi Adomakoh, CEO-GCB said: “We had a very fruitful discussion, and we are already tackling some of the bottlenecks. The Bank of Ghana and other institutions will be engaged on specific issues. In addition, we intend to carry out advocacy in the area of government policy relating to some of the industries we intend to support”.

Philip Owiredu, CEO-CalBank said: “It is now even more critical that DBG delivers on this mandate considering the economic challenges currently facing Ghana. At the end of the day, the good thing is we have taken the initiative to tackle head-on the responsibility of leading recovery of the economy, and that is a great step”.

In 2022, DBG provided funding of GH¢300million to local businesses in the agriculture, manufacturing and tourism sectors. Within the same period the bank with support from its partners provided capacity building to over 1,000 local businesses nationwide, including youth and women-owned entities. DBG’s partners in this endeavour have been GIRSAL, Ghana Chamber for Youth Entrepreneurs (GCYE), Ghana National Chamber for Commerce and Industry (GNCCI), Ghana Enterprises Agency (GEA), Ghana Stock Exchange (GSE), Association of Ghana Industries (AGI) and PriceWaterhouse Coopers (PwC). The bank’s partners also include universal banks like CBG, CalBank, Access Bank and Fidelity Bank.

DBG and CBG trains SMEs on Ghana Integrated Financial Ecosystem (GIFE)

Development Bank Ghana and Consolidated Bank Ghana recently organized a training course for 160 SMEs on the Foundational Financial Literacy Course, as part of the SME Financial Empowerment program. The training focused on the first pillar of the Ghana Integrated Financial Ecosystem (GIFE) and was facilitated by a DBG representative who guided the SMEs through the GIFE journey. This training marks a major step in enabling SMEs in Ghana and promoting financial inclusion. At the end of the workshop, SMEs who participated in the session received certifications on financial empowerment and business financial acumen approved by the United Nations Development Programme (UNDP), International Finance Corporation (IFC), Singapore University of Social Sciences (SUSS) and Global Fintech Institute (GFI).

The SME Financial Empowerment (Pillar 1), of the Ghana Integrated Financial Ecosystem is an online financial empowerment initiative which includes the Foundational Financial Literacy and aims at building the capacity of SMEs for global certification.

SME Financial Empowerment (SFE) is an educational program for businesses (MSMEs, SMEs) to build foundational digital financial literacy and understanding of essential financial services to thrive in the digital economy. Ultimately, the SMEs will learn how to digitalize and scale your business through our financial literacy program, access localized foundational and global content, grow SME business with tools and services catered to your needs and gives an opportunity to access financial support through the subsequent pillars of the GIFE.
Participants were assisted in taking up the Foundational Financial Literacy Course on the SFE, which provides a step-by-step guide on how to manage personal and business finances.

DBG and CBG plan to continue working together to provide SMEs with the tools and resources needed to achieve financial success.

 

DBG Receives Sustainability Standards Certification

Development Bank Ghana (DBG) has received the Award of Certificate of Acceptance under the Sustainability Standards and Certification Initiative (SSCI) at the Global Sustainable Finance Conference which was held from December 1 to 2, 2022 in Karlsruhe, Germany under the theme “Breaking the Ground: Building High Income Sustainable Economy through the Financial Sector”.

The Global Sustainable Finance Conference (GSFC) is a distinctive global forum that is focused on innovating banking and finance for a sustainable world. The conference which has been held annually since 2011, brings together key stakeholders for sharing new ideas on financing Micro, Small and Medium Enterprises (MSMEs), examining innovative approaches for large project financing, and exchanging knowledge and experience on making financial services responsive to the call for creating a socially inclusive, environmental and climate friendly, sustainable economy.

The Conference under its Sustainability Standards and Certification Initiative (SSCI) conferred on Development Bank Ghana the special recognition of a Sustainable Certified Financial Institution on the merit of the Bank’s commitment to building a strong and resilient institution, and its effort in creating a sustainable economy in Ghana.

The Award was received by Ghana’s Ambassador to Germany, H.E. Gina Ama Blay, on behalf of the Board of Directors of DBG and its Chief Executive Officer, Mr. K. Duker. In her address, the Ambassador acknowledged that the admission of DBG to the Sustainability Standards and Certification Initiative has indeed paved the way for the financial institution to become a catalyst in sustainable industrialisation in Ghana and a major contributor for the promotion of entrepreneurship towards a high value-added economy that Ghana continues to strive to achieve.

Her Excellency further explained how DBG, within a year of launching its operations, has built a dedicated Sustainability and Climate Finance Team responsible for oversight of ESG and sustainability and ensuring that the Bank is well-positioned to implement and execute the necessary processes and procedures required by local and international sustainability standards. She added that “the Bank has undertaken numerous ESG awareness and specialist trainings to ensure that all employees are educated and informed about the key tenets of ESG and Sustainability”.

Ambassador Blay also used the opportunity to thank DBG’s partners for their invaluable support since the inception of the Bank and expressed the hope that the tenets DBG currently employs throughout its operations will continue to strengthen its commitment to promote clean, responsible, and green business.

The Bank on the other hand recognises the acceptance into a leading accreditation forum and the certification status which would spur them on in integrating sustainability standards in its operation and importantly, advocating for the adoption of principles of sustainability in the financial environment in Ghana.

DBG is a Development Finance Institution, established by the Government of Ghana in November 2021, in accordance with the Development Finance Act, 2020 to serve as an enabler for businesses in Ghana and as a long-term capital provider in the market. The development bank is committed to ensuring good environmental and social performance through the integration of sustainable development in its financial and non-financial activities and by seeking to address the environmental and social (E&S) risks of its financing and lending activities. The bank’s operational policies incorporate ESG elements in the wholesale lending process from basic eligibility of Participating Financial Institutions (PFIs) to, detailed due diligence appraisals, approvals, monitoring and reporting.

-ENDS-