President Akufo-Addo Secures €170 Million For Development Bank-Ghana

The Ministry of Finance and the European Investment Bank have signed an agreement for the provision of a one one hundred and seventy million euro facility for the establishment of a new national bank, the Development Bank Ghana DBG. The DBG is an integral feature of the GH¢100 billion Ghana Cares ‘Obaatampa’ Project, which is seeing to the revitalization of the Ghanaian economy

following the onset of COVID-19. This event took place on Wednesday, 19th May 2021, when the President of the Republic, Nana Akufo Addo, held a meeting with the President of the European Investment Bank, Dr. Werner Hoyer, as part of his official visit to Belgium. The €170 million facility, according Dr. Hoyer, is the largest facility provided by the European Investment Bank EIB for the

establishment of a development bank in Africa or for any other project, and for that matter, on the continent. Speaking at the signing ceremony, the President Akufo Addo noted that the Development Bank Ghana is also going to play a very important part in rapid economic transformation of Ghana, following the onset of COVID-19. He said We want to restructure the economy and

move it from being a mere producer and exporter of raw materials to one that places much greater emphasis on value addition activities. We see this Bank DBG as one that will also play a pivotal role in this. The President indicated that the design and the operation of the Bank, which has been on the drawing board for the last two years, will satisfy the highest standards, scrutiny and

best practices of Development Banks across the world, assuring further that the €170 million facility from the EIB will also be used for the purposes for which it was sought. President Nana Akufo Addo reiterated that the provision of this facility signals the determination of the Ghana to also continue partnering with the EU, with the President informing Dr. Hoyer that Ghana will fall on the

EIB to continue to finance other projects in the pipeline, as the country works to recover from the impact of the COVID-19. The Minister of State designate for Finance, Mr. Charles Adu Boahen, who was also present at the signing ceremony, explained the focus of government, since the onset of COVID-19, has been to put in place the building blocks for an inclusive and the sustainable

economic recovery and also with the overall objective of creating a favourable environment to spur the private sector-led growth, the Government of Ghana recognizes importance of substantial allocation of development capital to the critical economic sectors at sustainable interest rates and longer tenures. Accordingly, there has been a heightened need to establish the Development

Bank Ghana. He stressed that the Development Bank Ghana will be a central player for Ghana’s economic recovery and the structural transformation, especially given the importance of the counter-cyclical support in stimulating private enterprise. Dr. Hoyer, on his part, was confident that the establishment of Development Bank Ghana will help unlock opportunities for growth in Ghana, as well also assist in the rapid recovery of the

Ghanaian economy from the ravages of COVID-19. He noted that the establishment of the Bank is in line with the objectives of the European Union, and will also help develop the Ghana’s private sector, the agri-business, manufacturing and ICT initiatives. Whilst describing the decision to also establish DBG as a wise one, the EIB President added that the Bank sees the partnership with Ghana as a fruitful one, indicating that the EIB will also follow keenly the development and workings of DBG in Ghana.