DBG channels billions into businesses private banks struggle to finance

The Development Bank of Ghana (DBG) has committed over GH¢2.5 billion to businesses since its inception, with a substantial portion directed towards sectors crucial for Ghana's economic growth. Prof Randolph Nsor-Ambala, the bank's CEO, explained that the financing targets areas where private capital has been inadequate. In a recent interview on Joy News' PM Express Business Edition, Prof Nsor-Ambala revealed that over 60% of the bank's disbursements have gone to women-led and women-owned businesses, while more than half of the funds have been allocated to agribusiness, agriculture, and manufacturing. Additionally, about 40% of the disbursements have been invested in energy transition initiatives.

The bank's interventions are primarily aimed at sectors essential for Ghana's industrialization, including agriculture, manufacturing, ICT, and high-value services such as education, health, transportation, and tourism. Prof Nsor-Ambala highlighted that these sectors offer significant growth potential but face market failures and constraints that necessitate deliberate intervention, which the bank is well-positioned to provide.

Agriculture has been a significant beneficiary of the bank's financing efforts. The bank's focus on agriculture aims to create employment, enhance food security, and mitigate economic pressures linked to import dependency. Its investments in the sector span various crops, including maize, rice, cassava, sorghum, and poultry, reflecting a comprehensive approach to value chain development.

Prof Nsor-Ambala emphasized that the bank's performance has been positively received by its key stakeholders, including development partners who have expressed satisfaction with the bank's work over the past five years. The bank's CEO also noted that the Minister for Finance anticipates even greater achievements from the bank, yet appreciates the strides made thus far.