MoU Signing – DBG/GCYE

Development Bank Ghana (DBG) today signed an MoU with Ghana Chamber of Youth Entrepreneurs (GCYE) to kickstart a partnership which reiterates the bank’s commitment to foster growth in youth-led business.

DBG’s partnership with GCYE aims to build the capacity of the young entrepreneurs in areas that contribute to fostering economic growth in the country. 

The engagement has the aim of training 1000 young entrepreneurs over the course of this partnership. As a start, DBG and GCYE will hold 2 virtual capacity building workshops on October 20th and 21st, 2022. The participants will be drawn from all 16 regions with at least 40 percent of the participants being women. 

The areas to be covered in the training are:

  • Introduction to Websites and Ecommerce
  • Social Media Marketing
  • Digital Financial Management
  • Introduction to ESG

The collaboration presents a business skills development programme, where 1000 Entrepreneurs will be trained to enable them to remain competitive to enhance their business operations. The programme seeks to de-risk these businesses towards accessing long-term capital. Specifically targeting Entrepreneurs in the Agribusiness, Manufacturing and High-value services with consideration for women-led businesses, youth-led businesses and environmental and social management systems.

Commenting on the partnership with the GCYE, Deputy Managing Director for DBG, Michael Baah-Mensah said, “This partnership is also very relevant in the wake of government’s call for more entrepreneurship opportunities for the youth starting with the recently introduced YouStart Initiative. We therefore believe that our partnership with GCYE will inject additional momentum into the effort to grow Ghana’s new generation of private sector players.”

Speaking during the MoU signing, the Chief Executive Officer of GCYE, said, “Through this partnership, we shall train about one thousand young entrepreneurs across the country on financial literacy, digitization, and business management skills. This collaborative mandate would be achieved through digital workshops, seminars, and business clinics. Further, we shall collaborate with the relevant government and state institutions through advocacy to promote to promote policies, programmes, and reforms that promote youth entrepreneurship”

DBG AGI/ GSE UN Capacity Training Workshop, 6th October 2022, Botsio Hall, Alisa Hotel

Development Bank Ghana (DBG) signed a tripartite memorandum of understanding with the Association of Ghana Industries and Ghana Stock Exchange. It comes as part of DBG’s mandate of building capacity and empowering banks and entrepreneurs through financial innovation and other advisory services to strengthen the ecosystem in which businesses operate. DBG views partnerships as critical to the execution of its mandate.

In his remarks, DBG’s Deputy Chief Executive Officer, Mr. Michael Mensah-Baah intimated that “DBG’s primary objective is to ensure that SMEs are in a better position to receive and use funds from participating Financial Institutions (PFIs). A critical role here for DBG, therefore, is to provide long-term funding to banks and to engage in partnerships with institutions like AGI and GSE to ensure the empowerment of the private sector for growth”.                                                                                           This collaboration with partners seeks to fashion innovative solutions that demonstrate that principles and profits are not mutually exclusive.  

“In his remarks, the Managing Director of the Ghana Stock Exchange (GSE), Mr. Ekow Afedzie said: “The GSE, DBG and AGI share the same ambition of supporting   Ghanaian SMEs to become giants in their industries by making patient capital available to them to expand their businesses. This tripartite MoU represents a significant step in catalyzing the growth of our SMEs by providing access to much-needed capital. The Ghana Alternative Market was specifically set up by GSE in 2013 to support SMEs to build sustainable businesses. He added that GSE is committed to all the action plans outlined in the MoU including this capacity building workshop.”

DBG is a development finance institution which with the support of international development finance partners such as the African Development Bank, European Investment Bank, the World Bank and the German development bank ( KFW) seeks to improve financing and technical support to the private sector through a wholesale model which operates via commercial banks designated as participating financial institutions (PFIs).

DBG Partners GIRSAL to Train Staff of Financial Institutions on Agric-Financing

Lending to the Ghanaian agricultural sector by financial institutions has traditionally been seen as unattractive. Agriculture receives around 4% of banks loans compared to its high contribution to GDP and employment and potential for driving economic transformation. This has been largely attributed to the high risk associated with the sector, among other reasons. Development Bank Ghana (DBG) in partnership with Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) seeks to correct this. GIRSAL’s agricultural credit risk guarantee and technical assistance have been introduced to stimulate more investment into the agricultural sector.

The DBG and GIRSAL program is designed to enhance financial institutions’ agricultural knowledge, improve their capacity to assess agricultural loan applications, and structure and manage agribusiness lending. In the first phase of the program which was held between August 2020 and September 2021, a total cohort of 262 mid-level staff from 24 financial institutions participated. The positive feedback received from participants on the program has indicated that the course has been effective in demystifying the agriculture sector and the prevailing perception that the agriculture sector is “high risk”. 

Development Bank Ghana (DBG) and GIRSAL are co-funding a second phase which involves three (3) additional training cohorts from August to December 2022. Training sessions began with 55 participants from 12 financial institutions at the National Banking College on 9th August. The two-module course covers Ghana’s agribusiness environment, value chains, agriculture insurance, and agricultural loan appraisal techniques. It is targeted at agriculture desk officers, relationship managers, credit risk officers, and credit analysts. The course also includes a practical field visit.

DBG is a critical partner for GIRSAL with the former, set up to provide long-term wholesale financing, credit guarantees, and business development services to increase overall lending to priority sectors, including agriculture. GIRSAL provides technical support to assess agricultural loan applications submitted to DBG, support applicant PFIs to identify risks, structure financing opportunities, and issue credit guarantees.

Michael Mensah – Baah, Deputy CEO of DBG mentioned it was important that financial institutions had a clear understanding of the value chain of agribusiness. He emphasized that only when conscious effort is made at understanding agribusiness is when giant strides will be made in de-risking agri-business lending. 

The MOU between DBG and GIRSAL was signed in March 2022. Both organizations will collaborate to provide capacity-building and innovative interventions to improve agriculture financing in Ghana. 

DBG Signs UN Global Compact – Bank to abide by ten principles for sustainable business and governance

Development Bank Ghana (DBG) announces that it will, today, be signing on to the United Nations Global Compact as part of the Bank’s efforts to strengthen its commitments and operations with a sustainable business and greater governance framework.

The United Nations Global Compact is a United Nations pact which enjoins its signatories, mostly businesses and firms worldwide, to adopt sustainable and socially responsible policies, and to report on their implementation. The Compact has a ten-principle-based framework for businesses. This enables them to operate in ways which meet fundamental responsibilities in the areas of human rights, labour, environment, and anti-corruption which form the pillars of the UN Global Compact. By incorporating the Ten Principles of the UN Global Compact into strategies, policies, and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.

By becoming a signatory to the United Nations Global Compact, DBG is reinforcing its commitment to uphold and protect human rights, labour, environment, and anti-corruption principles through its business practices. The UN Global Compact provides DBG with a universal language for corporate responsibility and a framework to guide all businesses regardless of size, complexity, or location. The UN Global Compact also positions DBG to effectively assess, define, implement, measure, and communicate its sustainability strategy goals. Most importantly, the tenets of the UN Global Compact are strategies DBG currently employs throughout its operations so by joining the Compact the Bank is strengthening its commitment to do clean, responsible, and green business.

Commenting on DBG joining the UN Global Compact, Mr. K. Duker, Chief Executive Officer of DBG said, “DBG is pleased to join the many organizations all over the world who are signatories to the UN Global Compact and who believe as we do, that ethical business conduct is an important component that enables companies to foster sustainable development.”

The United Nations Global Compact is the world’s largest corporate sustainability initiative with 13,000 corporate participants and other stakeholders over 170 countries with the objectives of mainstreaming the ten principles in business activities around the world and to catalyse actions in support of broader United Nations goals such as the Sustainable Development Goals.

DBG is Ghana’s new development finance institution which with the support of international development finance partners such as the African Development Bank, European Investment Bank, the World Bank and KfW, the German development bank, seeks to improve financing and technical support to the private sector through a wholesale model which operates via commercial banks designated as participating financial institutions (PFIs). DBG was launched in June 2022 and is currently engaged in building a strong network of PFIs and local agencies who share common aspirations and objectives to improve on the support to Small Medium Enterprises (SMEs) and to attain its vision of accelerating inclusive and sustainable economic transformation by fostering the growth of a competitive private sector.

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DBG-GNCCI CAPACITY-BUILDING WORKSHOPS

The Ghana National Chamber of Commerce (GNCCI), in collaboration with Development Bank Ghana (DBG), has formally launched the first phase of a flagship capacity-building initiative. The programme aims to develop and reinforce the business skills of 1000 SMEs from across Ghana’s private sector to improve their commercial operations and enable them to remain competitive.

The workshops will be organised in five locations (Accra, Koforidua, Tarkwa, Takoradi, and Cape Coast) with a focus on three main aspects, i.e.: preparation; event day; and follow-ups. Overall, these workshops are aimed at training businesses to scale up their operations as well as adopt operating models that better position them to access loans from DBG’s participating financial institutions.

The workshop will initially identify 500 SMEs (100 per location), derived from baseline data that covers businesses by sector, region, and ownership (women-led/ youth), to be trained on the use of the Ghana Integrated Financial Ecosystem (GIFE) digital platform. The workshop shall focus on Environmental, Social and Governance Practices; the introduction of Participating Financial Institutions (PFIs); risk management and market development strategies. An important goal is to ensure a greater representation of women- and youth-led MSMEs as participants in the five workshops

The success of the capacity building workshops will be measured by the following:

  • 500 SMEs are trained on the GIFE digital platform with a good representation of women-led and youth-led businesses
  • Over half of the SMEs are supported to apply for DBG funding through the participating financial institutions. 
  • Baseline data of 500 SMEs are gathered for monitoring and evaluation as well as for impact assessment

Mr. Michael Mensah-Baah, the Deputy CEO of DBG, indicated that the Bank 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.  According to him, small business owners often do not have access to the long-term capital they need to grow and are often seen as too risky by banks. “Addressing the lack of long-term financing that drives the kinds of investment that will lead to sustainable growth, is a gap that must be addressed,” the Deputy CEO said.

DBG views partnerships as critical to the way it executes its work. “We are very grateful to GNCCI for organising this capacity-building programme to develop and strengthen the soft and hard skills of its SME members to stay competitive, build resilience and grow their businesses sustainably,” he added.

In his remarks, Mr. Clement Osei-Amoako the President of the Chamber said the skills development programme is to provide 1000 MSMEs with the requisite skills to scale-up their business operations and de-risk them towards accessing long-term capital. Specifically, we are targeting MSMEs in the following sectors with consideration for women-led businesses, youth-led businesses, and environmental and social management system:

  • Agribusiness – those that are into the production of perennial and non-perennial crops, trade, supporting activities to agriculture and post-harvest crop activities, and animal production.
  • Manufacturing – those that into the transformation of raw materials into finished products or intermediary goods, including the processing of agricultural products.
  • High-value services – these include information technology and communication, tourism and related activities, health, education, transport, and storage, among others that generate employment or significant value to the economy.

Accordingly, the GNCCI commends government for the establishment of DBG as an enabler for businesses in Ghana and as a long-term capital provider in the market. We believe this has come at a crucial moment to address the difficulty in accessing long-term capital amidst the rising cost of doing business owing to both local and global shocks. More importantly, the GNCCI calls for a smart, innovative and indigenous way of addressing the collateral-issue in order not to impede business access to capital. Also, DBG’s Participating Financial Institutions must ensure that bankable projects are given the nod to boost the confidence of our businesses as well as entrepreneurs. 

Mr. Amoako expressed gratitude for this unique collaboration with DBG to empower MSMEs in Ghana. “Let me assure you that the GNCCI remains dedicated to promoting and protecting commercial and industrial interests via its cutting-edge business support services. Now is a better time to join and partner with the GNCCI to build a resilient and competitive private sector” he added. 

B&FT (6th June 2022) – Access Bank champions SMEs growth through digitalisation workshops

Access Bank Ghana Plc has held training on digitalisation for SMEs in Kasoa to equip them to leverage technology for their business success and growth.

The capacity building workshop was in partnership with Development Bank Ghana and Open Labs on the theme ‘Boosting Digital Skills for Emerging Opportunities’. It was the third of its kind organised by Access Bank in the year; the first two being held in Tamale and Techiman.

In an interview with the Managing Director of Access Bank Ghana ahead of the workshop, Olumide Olatunji said Access Bank believes in the prospects of SMEs and assured of the bank’s support toward their progress and success.

“Supporting SMEs to positively impact Ghana’s economy is a mandate our bank holds dear. They are a major employer in Ghana, and when given the right support Ghana’s economy will do well,” he noted. He called on SMEs in the country to contact any of Access Bank’s branches to get support for their businesses.

Addressing the over-100 participants at the workshop, the Group Head of Retail Banking for Access Bank, Matilda Asante Asiedu, said building the capacity of SMEs is in line with Access Bank’s goal of becoming the bank of choice for SMEs in Ghana. “As important stakeholders to the sustenance of Ghana’s economy, SMEs deserve to be supported to make the necessary impact, and we are pleased to be partners of this agenda,” Matilda noted.

She shared some findings on SMEs’ contribution to Ghana’s economy. “Research reveals that Ghana’s private sector is dominated by Small and Medium-sized Enterprises (SMEs) by a little over 90% of the market share. SMEs employ 60% of the labour force and add 70% to Ghana’s Gross Domestic Product (GDP).”  Despite the enormous contribution SMEs make to employment and GDP, they are saddled with the critical challenge of funding, training and advisory services among others (Kumaza A. 2021, Growing the Small and Medium Sized Enterprises in Ghana, Ghanaian Times).

Also speaking on Access Bank’s dedication to SMEs, Group Head of Business Banking for Access Bank Ghana, Kafui Bimpe, explained that Access Bank’s growing commitment to SMEs is to equip them in leveraging available technology to derive all benefits the digital space provides.

“Within these past two years, we have championed SMEs’ digitalisation through our capacity building sessions, access to loans for business expansion, advisory services and other tailor-made products to help your businesses. When SMEs succeed, our economy will also do well,” Kafui noted.

Facilitating the workshop, Peniel Amankwah of Open Labs took participants through effective book-keeping, tracking sales and leveraging social media for business growth. She advised participants to utilise their mobile phones in reaching the world with their businesses.

Phyllis Rose Asante, an entrepreneur in the juice processing industry at Millennium City, Kasoa, was happy about business prospects with the new information she had acquired.

She said her business will no longer be kept on the boundaries of its physical space, but will move beyond the shores of Ghana. “I am grateful to be part of this training. I have been enlightened and empowered. I didn’t know my phone was so powerful as to make my business go international. I really thank Access Bank for this opportunity,” Ms. Phyllis shared.

Access Bank remains committed to giving customers more than banking. The bank has over the years developed a deep understanding of customers’ needs, delivering excellent service and empowering them to achieve more through financial inclusion.

 

Source: Business & Financial Times

Myjoyonline (8th June 2022) – Agribusiness to receive more support through GIRSAL & DBG

The Ghana Incentive-based Risk Sharing for Agricultural Lending (GIRSAL) has announced its collaboration with the newly established Development Bank Ghana (DBG) which is aimed at improving the funding and capacity-building opportunities for agriculture-based businesses (agribusiness) and agriculture generally in Ghana.

As a non-bank financial institution, GIRSAL has been at the forefront of de-risking agricultural financing by financing institutions, through the issuance of agricultural credit guarantee instruments, to enhance the total amount of credit to the agricultural and agribusiness sectors.

Currently capitalized with over GHS200 million and USD14 million, GIRSAL continues to look for opportunities to improve its support to agriculture and agribusiness including the provision of technical support.

In line with its approach, GIRSAL collaborates with its immediate and direct clients, namely financial institutions made up of universal banks, savings and loans companies, rural and community banks, and other lenders or investors who demonstrate a desire to work with GIRSAL, to improve the support for agricultural lending.

Over the years, GIRSAL has formed partnerships with banks and institutions that are well placed to offer financial and technical support to their focus sector.

With the introduction of DBG, GIRSAL looks forward to a collaboration that would inject the much-needed improvement to what it has been doing since its inception.

GIRSAL’s collaboration with DBG is structured on three pillars.

  1. One is to build the capacity of DBG by providing training programmes that would deliver a greater appreciation of the agricultural sector. GIRSAL has done this over the years to enable banks to access and evaluate agricultural projects.
  2. The second is to support DBG’s efforts to assess projects that commercial banks submit to them for funding; to have a better understanding of the risk elements, the technical viability, financial viability, and how such facilities should be structured.
  3. The third is that the two institutions are a good fit for participating financial institutions like banks to understand and support the agricultural sector.

Commenting on the collaboration, GIRSAL Chief Executive, Mr. Kwesi Korboe said, “GIRSAL as an institution has a sole objective of ensuring that financial institutions lend to players in the agribusiness sector. The key issues are always getting funding that is long-term and priced in a very competitive way that makes it possible for agribusinesses to borrow money from the financial institutions for their businesses.

“What DBG brings to the table which we find very exciting and critical is that they have a pool of funds that is competitively priced and also has a long tenure which allows commercial banks to access and potentially on-lend to agribusinesses. This will ensure that we have a very vibrant agribusiness in this country.”

GIRSAL acknowledges that the agricultural sector or agricultural value chains require a lot of funding and technical support in order to cut across most of the activities along the value chain from production, processing-related activities, marketing haulage and value addition.

Through the partnership with DBG, GIRSAL aims to ensure that there is an increased pool of funds and capacity-building opportunities available for agribusinesses to access to improve their businesses.

This would result in more rural employment as most agribusinesses operate in the rural areas usually on production-related activities which typically require more hands.

It would also result in increased exports which would generate more foreign exchange for Ghana and lead to a reduction in the value of food and other agricultural products imported into this country.

GIRSAL, therefore, considers the socio-economic benefits of the collaboration with DBG as very attractive for the country as the ultimate impact will be very positive.

GIRSAL is well placed to support all agricultural value chains and continues to do so through touch points such as input suppliers, producers, aggregators, transporters, warehousing, marketing, and processors/value addition.

These have been possible through working with financial institutions and intermediaries to strengthen their institutional capacity to support new lending to agribusinesses in selected value chains, offering participating financial institutions who grant loan facilities to agribusinesses credit risk guarantee cover, and facilitating technical support to farmer groups and agribusinesses in the value chains to build their capacity and thereby prepare them to access loan facilities.

DBG will launch on 14th June. It is expected to begin making further announcements in the very near future.

 

Source: myjoyonline

Business Ghana (10th June 2022) – AGI & DBG Sign MoU to Deepen Support for SMEs

The Association of Ghana Industries (AGI) and Development Bank Ghana (DBG) have signed a Memorandum of Understanding (MoU) to cement their relationship and commitment to promoting the growth of the Small and Medium-sized Enterprises (SME) sector.

The move is to ultimately improve the contribution of SMEs towards the development of Ghana’s economy.

The AGI as the national body of industries acknowledges the role of SMEs in the economies of developing countries and is committed to growing Ghana through industries, especially the SME sector.

SMEs form about 80 percent of businesses in Ghana, as such the AGI considers it critical that it offers structured support for this sector of the economy.

Over the years, AGI has remained focused on contributing substantially to the growth and development of Industry through effective policy advocacy and the provision of business support services. With the establishment of DBG, the AGI sees a great opportunity to grow strong bonds with the development bank and thereby work together towards improving the support that SMEs receive in Ghana.

AGI will pursue its agenda through capacity building of SMEs, training and networking as its cardinal activities.

Furthermore, AGI will continue to engage government and its agencies to create the enabling environment for the growth of businesses and the creation of jobs.

In line with its objective to grow a strong industrial base with key sectors that are globally competitive, the AGI also sees the relationship with DBG as an opportunity to strengthen Ghana’s industries for international competition, particularly with the introduction of the Africa Continental Free Trade Area (AfCFTA).

The AGI, therefore, looks forward positively as it works with DBG to build on the support available to the SME sector to position Ghanaian businesses for exports to the region.

Commenting, the AGI President, Dr. Humphrey Ayim-Darke said, “AGI and DBG’s relations will assist in deploying various interventions to support SMEs for growth. This will be done through capacity building, mentoring and business advisory services. We will fish out potentially innovative SMEs that we believe are in the growth-oriented sectors of the economy that cuts across the nation. We will identify and support them through the DBG and AGI collaboration.

Specifically, AGI will avail the data of its SME members who meet the eligibility, criteria of the participating financial institutions or commercial banks that receive funding from the DBG to lend to SMEs. We will seek to bring to the table further understanding of each sector to assist these financial institutions to be able to structure suitable funding for each sector and business entities.”

Over the years, the business barometer survey and report has indicated that access to funding and cost of funding have been the biggest challenge of most SMEs. With the introduction of DBG and the collaboration with AGI, there are several expected benefits to members of the Association in the SME bracket.

These include access to medium-to-long term funding, access to competitive rates, that positions these SMEs for potential growth and export of their products as well as job creation which is very critical for the stability of Ghana.

AGI will additionally offer mentoring, capacity building and networking opportunities to assist succession planning in SME businesses.

The AGI has since 1957 pursued the not-for-profit agenda of promoting industries and indigenous manufacturers in Ghana.

This includes providing proactive support services to the industrial sector with the view to contributing substantially to the growth and development of industry in Ghana.

The Association has over 1200 members across all the regions of the country and is recognised as the leading voice of the private sector.

 

Source: Business Ghana