President Akufo-Addo has secured a €170 million facility for the establishment of the new national bank, the Development Bank Ghana (DBG).

The Ministry of Finance and the European Investment Bank signed the agreement for the provision of the loan facility.

Speaking at the signing ceremony, today, Wednesday, 19th May 2021, President Akufo-Addo noted that, the bank will play a very important part “in the rapid economic transformation of Ghana, following the onset of COVID-19”.

President Akufo-Addo made this remark during a meeting with the President of the European Investment Bank, Dr. Werner Hoyer, as part of his official visit to Belgium.

Loan facility will be put to good use

Additionally, the President averred that, the design and operation of the Bank, “has been on the drawing board for the last two years”. This, he noted, will satisfy the highest standards, scrutiny and best practices of Development Banks across the world.

He further assured that the €170 million facilities from the EIB will be used for the purposes for which it was sought.

Accordingly, the President revealed, the provision of the facility signals the determination of Ghana to continue partnering with the EU.

He further informed Dr. Hoyer that Ghana will count on EIB to continue to finance other projects in the pipeline. The President maintained that this has become necessary as the country works to recover from the impact of Covid-19.

On his part, Dr. Hoyer asserted that, the facility is the largest provided by the European Investment Bank for the establishment of a development bank in Africa, or for that matter any other project on the continent.

“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 play a pivotal role in this”.

Inclusive economic recovery

Present at the signing ceremony was the Minister of State-designate for Finance, Mr. Charles Adu Boahen. He opined that the focus of government is to put in place the building blocks for an inclusive and sustainable economic recovery.

He further stressed that the Development Bank Ghana will be a central player for Ghana’s economic recovery and structural transformation.

“…especially given the importance of counter-cyclical support in stimulating private enterprise.

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

Commenting on this, Dr. Hoyer expressed his confidence on the establishment of Development Bank Ghana. He believes this will help unlock opportunities for growth in Ghana. Similarly, he insisted it will assist in the rapid recovery of the Ghanaian economy from the ravages of COVID-19.

Dr. Hoyer further noted the establishment of the Bank is in line with the objectives of the European Union. As such, it will help develop Ghana’s private sector, agri-business, manufacturing and ICT initiatives.

Whilst describing the decision to establish DBG as “a wise one”, the EIB President stated that the Bank sees the partnership with Ghana as a fruitful one.