DBG steps up textile industry financing with new investor-ready projects

The Development Bank of Ghana (DBG) is making significant strides in financing the textile industry through the identification of five investor-ready projects. DBG's Chief Executive Officer, Prof Randolph Nsor-Ambala, highlighted that the textile sector is a priority area under manufacturing for the bank. While the bank's mandate spans agriculture, manufacturing, ICT, and high-value services, it has been focusing on textiles, pharmaceuticals, and energy transition within manufacturing.

DBG is also prioritizing youth-led and women-owned businesses and seeking to expand financing beyond Greater Accra. The bank has adopted a whole-of-value-chain approach to support the textile sector, having signed a three-year memorandum of understanding with the Association of Ghana Industries. This agreement includes financing textile businesses, supporting market development and capacity building, and providing technical assistance to help businesses develop investor-ready projects.

The partnership has already led to the creation of a deal room for assessing and developing projects for financing, with five projects road-showed to participating financial institutions. DBG expects at least two of these projects to secure financing before the end of the year. Additionally, the bank is conducting a nationwide feasibility study into the textile sector with support from KfW, identifying challenges and potentially bankable projects.

The bank is now working with these businesses to make them investor-ready, with a timeline of up to the end of November. Development partners are crucial to DBG's ability to provide long-term financing, as they bring significant cash, technical expertise, and resources to address market failures and binding constraints faced by businesses.