Development Bank Ghana (DBG) has disclosed plans to invest GHS700 million in women- led businesses in the next three to five years to enhance growth.
Michael Mensah-Baah, the Deputy CEO of DBG who made this known at a stakeholder’s workshop on Barriers and Opportunities to Women’s Access to Finances in Ghana, noted that the commitment is about 10 per cent of DBG’S funding, signalling a strong support towards women-owned businesses.
Mr Mensah-Baah noted that DBG’s vision is to accelerate inclusive and sustainable economic transformation by fostering the growth of a competitive private sector. He added that the bank is also committed to ensuring that 20 per cent of all the businesses that receive DBG funding are owned by women.
The workshop was to enable stakeholders to embark on a collective effort to address the critical issue of gender mainstreaming in the financial sector. Small and medium enterprises (SMEs) as well as local corporates constitute more than 90% of businesses in Ghana yet are only able to access less than 10 per cent of their financial needs through financial institutions.
According to the Mastercard Index of Women’s Entrepreneurship (MIWE), 46.4% of businesses in Ghana are owned by women. Despite the critical role women play in economic development, access to finance has been a major constraint for women- owned businesses.
Mr Mensah-Baah said inclusivity was extremely important to ensure all sections of society benefit and thrive. He explains that the Gender Mainstreaming Accelerator Programme (GMAP) under the ICR facility in collaboration with partners and stakeholders aims to provide capacity-building programmes for DBG & targeted Participating Financial institutions. “This Programme presents a platform for creating a more equitable and inclusive financial ecosystem that serves the needs of all Ghanaians, particularly our women entrepreneurs,” he stated.
Mr Mensah-Baah disclosed that the Gender Mainstreaming Scan (GMS) conducted by the GFA Consulting Group has provided valuable insights into the existing gender disparities and barriers within institutions and the broader financial landscape.
Key Gaps, Challenges Hindering Women’s Access To Finance
Through extensive data collection and analysis of DBG & five selected PFIs comprising commercial banks and non-bank financial institutions, the GMS has shed light on the key gaps and challenges hindering women’s access to finance, as well as the institutional, legal, and structural barriers that must be addressed to promote gender equality.
Mr Mensah-Baah noted that it is in this connection that DBG decided to harness the collective expertise, experiences, and perspectives of the diverse stakeholders to develop comprehensive and contextually relevant policy recommendations.
“By engaging in open dialogue and collaborative problem-solving, we aim to identify tangible solutions that will drive meaningful change and advance our gender mainstreaming efforts. Together, we have the opportunity to shape policies and frameworks that will not only benefit our institutions but also empower women entrepreneurs and contribute to the socioeconomic development of our nation.”
Mr Mensah-Baah
Mr Mensah-Baah indicated that DBG on its part has been involved in the area of gender mainstreaming by building capacity of women and youth-led businesses to thrive in the financial landscape.
DBG is also participating in initiatives such as the 2X Challenge, underscoring its dedication to advancing women’s economic empowerment, contributing to the mobilization of capital for projects that directly benefit women entrepreneurs, leaders, and stakeholders, thus amplifying their impact on the economy.
Additionally, DBG has endorsed the Women’s Empowerment Principles (WEPS), further solidifying its commitment to promoting gender equality and women’s empowerment. By adhering to these principles, DBG is actively working to create a more inclusive workplace, marketplace, and community, where women have equal opportunities to thrive and succeed.
Mr Mensah-Baah, moreover, expressed gratitude to the Investment Climate Reform (ICR) Facility together with the sponsors of this programme for their unwavering support in advancing gender- lens investing activities within the Development Bank of Ghana. He lauded the commitment of stakeholders to fostering inclusive economic growth, saying DBG is truly privileged to partner with them on the journey.
