• Adu Boahen has said the establishment of the Development Bank of Ghana would stimulate growth for private enterprises

• He adds that it would offer an allocation of development capital at sustainable interest rates and long tenures

• The bank is expected to commence operations in July 2021

Minister of State-designate for Finance, Charles Adu Boahen, has touted the establishment of the new national bank, Development Bank Ghana (DBG) as one that would stimulate growth for private enterprises.

According to him, the objective of establishing the bank is to offer an allocation of development capital to critical growth sectors of the economy at sustainable interest rates and long tenures.

Speaking after a signing ceremony between Ghana and the European Investment Bank (EIB) to secure some €170 million for the establishment of the bank in Belgium, Adu Boahen stressed that the bank will play a key role in the country’s economic recovery and structural transformation.

“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 especially given the importance of counter-cyclical support in stimulating private enterprise,” Adu Boahen said.

He added that the focus of government following the onset of the COVID-19 pandemic is hinged on placing building blocks towards an inclusive and sustainable economic recovery.

Meanwhile, President Akufo-Addo has assured that the funds will be used for its intended purposes. He pointed that the bank when established will satisfy the highest standards, scrutiny and best practices of Development Banks across the world.

Finance Minister Ken Ofori-Atta had earlier disclosed that the Development Bank Ghana will in July this year commence its operations.

The bank according to the minister will serve as a wholesale entity that will offer guarantee investment instruments in order to woo in universal banks to lend to critical growth sectors.