Cultivating A Thriving Private Sector With A GHS 623M Lending Boost in 2023

DBG Wrapped 2023

In the past year, Development Bank Ghana (DBG) has partnered with its Participating Financial Institutions (PFIs) to disburse GHS 623 million into the private sector. Our key highlights in 2023, captured in our year-end wrapped video, reflect our unwavering dedication to empowering businesses and stimulating development.

Our commitment to extending financial and non-financial support to underserved local businesses and MSMEs has been at the forefront of our operations. Through this, we’ve fostered job creation and spurred business expansion across key sectors.

The expansion of our partnership network to ten Participating Financial Institutions (PFIs), including the addition of three micro-finance institutions, has allowed us to amplify our reach and impact. This strategic move has enabled us to provide robust support to segments often marginalized in the financial landscape, underscoring our commitment to inclusive growth.

Capacity building remains a cornerstone of our mission. In collaboration with partners like the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) among others, we’ve equipped 9,729 SMEs with the tools to enhance their financial management and market access. The success of our Ghana Integrated Financial Ecosystem (GIFE) program further highlights our innovative approach to financial inclusion and economic acceleration.

As we move forward, DBG remains resolute in our vision to accelerate inclusive and sustainable economic transformation by fostering the growth of the competitive private sector.

Check out our 2023 journey and see the collective impact of our efforts.


DBG – SINAPI ABA Partnership Yielding Fast Results

African farmer is using a tablet on the background of working tractor with a cultivator in the field. Agriculture or innovate cultivation concept

In a bid to reach out to the grassroot businesses who are vital components of the Small and Medium-sized Enterprises (SMEs) sector, Development Bank Ghana (DBG) partnered with Sinapi Aba Savings & Loans, an indigenous microfinance institution which offers financial services to businesses predominantly located in the rural areas. The partnership which was signed in October 2023 has already began yielding immense results for business owners who have benefited from the allocated GHS15million DBG facility to Sinapi Aba.

Coming on as the first microfinance institution to partner DBG as a Participating Financial Institution (PFI), Sinapi Aba’s collaboration with the wholesale bank-modeled development bank has given strong hints of living up to expectation as it has already started delivering much-needed support to local businesses in the rural areas who hitherto were marginalised and encountered challenges in accessing facilities from commercial banks.

Through this approach, DBG seeks to mitigate, and where possible eliminate, the challenge of lack of access to financial support to numerous local businesses at the grassroot-level who require funding with longer time span. This partnership therefore makes available the DBG-arranged patient capital for these businesses to grow and expand.

Beneficiaries like Linda Osei Agyemang, the proprietor of Augusma Educational Complex in the Ashanti Region, who by virtue of the partnership, received funding has been able to expand her school by building additional classrooms thus offering her the opportunity to increase the number of students on roll. Similarly, Kwame Owusu Ansah, who is the owner of City Life Hybrid School also in the Ashanti Region has benefited from the partnership by securing a long-term loan to purchase a School Bus. By this, Kwame is able to offer students of his institution decent transportation to and from school and a readily available mode of transportation for field trips and other off-site learning activities.

Mr. Kwabena Amofa, Chief Executive Officer of Royal Company, a rice mill factory in Mampong Ashanti, indicated that he was initially skeptical about the benefits to clients like his company as a result of the DBG-Sinapi Aba partnership after seeing the story online. Today, he is glad that he went to the Sinapi Aba office to verify because his company is currently a beneficiary of a DBG facility. Full of praise for the partnership and what it offers local businesses like Royal Company, Mr. Kwabena Amofa says “but for the intervention of DBG, we would have not been able to secure a long-term loan for our business simply because all other banks regard our business as high-risk and are hesitant about offering us facilities to fund our business. Today, I am able to employ more hands, particularly women, to help with the packaging of our product as well as expanding other operations of our business”.

The partnership between the two institutions affords DBG the opportunity to tap into Sinapi Aba’s network of 44 branches located in 14 of the 16 regions of Ghana. This further offers DBG the window to reach the 65 percent of Sinapi Aba Saving & Loans’ customers who are in the rural areas and to offer them support with much-needed long-term capital for business growth. Sinapi Aba on the other hand will receive wholesale capital which it will on-lend to its base of SME customers, majority of whom are in the rural areas as patient-capital.

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 To Support Korle Bu Teaching Hospital Over The Next Five Years

Development Bank Ghana (DBG) has pledged financial support for the Breast Cancer Unit of Korle-Bu Teaching Hospital (KBTH) over the next five years.

Presenting an amount of GH¢100,000 to the Breast Cancer Unit in Accra, Chief Executive Officer-DBG, Kwamina Duker, explained that the decision to support KBTH is to help address certain needs of the facility over the five-year period.

“We are a long-term bank and we believe in staying with our partners and donors; and in this particular case, as we make our contribution, we are committing to do this for the next five years so there is continuity. You will see us again next year,” he assured.

He underlined that the decision to support the breast cancer unit is solely an initiative of company staff who collectively worked as a team and raised the money, and leadership of the bank only topped up what the staff raised. He concluded that the step taken by the institution illustrates “how passionate the staff and organisation feel about breast cancer”.

Head-Surgical Department, KBTH, Professor J.E. Mensah underscored poverty as the biggest challenge to practicing medicine in the country. According to him, patients transferred to the hospital come with major cases yet some do not have means to pay for the service.

He commended the bank for their donation and explained how such kind gestures from corporate bodies and individuals continue to support needy patients at the hospital.

“If anybody asks me of the biggest challenge to practicing medicine in Ghana, my response will be poverty; because if patients are financially stable, they can afford the cost of medical care and all. But most people don’t have financial strength, and these are our brothers and sisters. So, we sometimes have to bend corners to solve their problems’ and we can only do so with assistance from people like you [DBG],” he said.

Furthermore, he said, as a teaching hospital KBTH has to open its doors to attract more people, even those with financial challenges, so that others can be trained through pure apprenticeships in the hospital.

Head-Corporate Social Responsibility, DBG, Barbara Wricket mentioned that as a bank that is passionate about women and children, the staff in October embarked on rolling out an initiative to support women with treatment for breast cancer.

She indicated that their contributions as staff also got some assistance from leadership of the bank, bringing the money to GH¢200,000 – adding that they are donating GH¢1,000 each to the KBTH and 37 Military Hospital.

“In the month of October, we embarked on rolling out an initiative to support women with breast cancer. Internally, we were able to raise funds which were co-funded by DBG; and with the push of management we raised GH¢200,000 – of which we will be donating GH¢100,000 to KBTH and GH¢100,000 to the 37 Military Hospital,” she said.

Additionally, she said, the bank aims at supporting the children’s hospital by renovating some old structures and identifying the diseases that are prominent among them to offer their assistance. Also, she mentioned that the bank hopes to increase the amount of money they give to KBTH.

A surgeon at the Breast Surgery Unit of KBTH, Dr. Josephine Nsaful, mentioned that breast cancer cases continue to increase as more deaths are being recorded in developing countries; especially in West Africa, including Ghana, because women hardly go for breast-screening.

DBG Partners with Fidelity Bank to Support New Okaff Industries Limited

Development Bank Ghana (DBG) has partnered with Fidelity Bank to support New Okaff Industries Limited. The support is in line with DBG’s vision to accelerate inclusive and sustainable economic transformation by fostering the growth of a competitive private sector.

In pursuit of this vision, DBG has partnered with 10 Participating Financial Institutions (PFIs) including Fidelity Bank to address the financing gap in the country by offering patient capital at preferential rates to SMEs.

New Okaff Industries Limited, a wholly owned agro-chemical production company was founded in1989 and is located in the Atwima Mponua District of the Ashanti Region of Ghana.

Speaking about the loan, Akwasi Boama Adomako– Commercial Director of New Okaff Industries Limited said “The loan has supported New Okaff in various diverse ways. Looking at the challenges after the COVID era. Across the globe every company was wailing but then with this loan that we had we were able to maintain our working capital. We were able to also maintain our workforce despite the fact that most companies were laying off their workforce

One most important thing I want to say is that DBG’s support is real and New Okaff has benefitted from this offer every well and because of that I want to encourage our peers so that they can also go through their various banks to acquire for that support as we did through Fidelity Bank”

Kingsley Agyekum – Agribusiness Manager (Commercial & SME) of Fidelity Bank said “New Okaff deals in the production and sale of organic agro-chemicals. So, when they approached us for funding support, as a bank, we saw it as an opportunity because it falls within our strategy to support agriculture and exports”

DBG, acting as an enabler through its Participating Financial Institutions (PFIs), has disbursed 212.5 million to the Agric. Value Chain. This crucial investment secures not only food security but also ensures the adoption of sustainable agricultural practices

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).



Development Bank Ghana Introduces ‘DBG Connect’

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

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

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

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

LinkedIn: @development bank ghana

Facebook: @development bank ghana

Twitter: @devbankghana

Instagram: @devbankghana