DBG lines up textile deals for credit approval, disbursement before year-end

The Development Bank of Ghana (DBG) is set to back at least two textile projects before the year 2026, according to Prof Randolph Nsor-Ambala, the bank's CEO. These projects are part of five emerging from a textile sector deal room established by DBG and its partners. The CEO mentioned that these projects have been road-showed to various financial institutions for approval, and he expects that at least two of them will receive credit approval and disbursement before the end of 2026.

Nsor-Ambala highlighted textiles, pharmaceuticals, and energy transition as key focus areas under DBG's manufacturing mandate. He emphasized that the bank's support for the textile sector extends beyond providing credit. It includes market development, capacity building, technical assistance, and policy advocacy to address challenges within the sector.

DBG signed a three-year Memorandum of Understanding with the Association of Ghana Industries to support the textile sector, which includes financing for textile businesses, market development, and technical assistance.

The bank's interventions have also contributed to policy changes affecting the sector. Concerns raised during a textile sector roundtable organized by DBG led to the signing and approval of a new policy by Parliament. DBG has collaborated with partners such as GIZ, Palladium, and JET to strengthen capacity within the sector. The bank recently supported training with international experts and established a deal room with GIZ and Palladium to identify projects that require further preparation to attract financing.

A nationwide feasibility study on the textile sector, undertaken with support from KfW, identified challenges and bankable projects held back by specific constraints. DBG is currently working with businesses to make them investor-ready by the end of November. The bank's broader strategy is to provide value-chain solutions rather than simply lines of credit.

Nsor-Ambala emphasized the bank's priority on youth-led and women-owned businesses and its efforts to extend investments beyond Greater Accra, with about 40% of its investments being in hard-to-reach areas outside the Golden Triangle. Development partners play a crucial role in DBG's financing model, providing cash, technical agility, expertise, and manpower to address market failures and binding constraints within the bank's mandate areas.