|Approval Date||12 Nov 2021|
|Signature Date||23 Nov 2021|
|Planned Completion Date||31 Oct 2022|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||24030|
The Project is aligned with Ghana’s Beyond Aid Vision and supports the Government’s efforts to revitalize the economy post-COVID-19. The Ghana Beyond Aid Charter calls for the establishment of “a new National Development Bank that is strong enough to mobilize domestic and foreign long-term private capital, in addition to Government’s contributions, toward agricultural and industrial transformation. This institution, which will operate as a wholesale bank, using a private sector model, will provide financial institutions with long-term financing to accelerate industrialization and agricultural modernization.” The Project is also aligned with Ghana’s COVID-19 Alleviation and Revitalization of Enterprises Support (CARES) program that identifies the expansion of access to finance for Ghanaian businesses as one of the key measures for economic revitalisation and transformation. This is an African Development Fund (ADF) grant of UA 28.39 million to the Republic of Ghana to further capitalise the Development Bank Ghana (DBG), a newly established development finance institution (DFI). The main component of the Project is capital enhancement. This will help strengthen the balance sheet of this national DFI and enhance its capacity to provide much-needed support to businesses in Ghana through the following main instruments/channels: (i) Funding to Participating Financial Institutions (PFIs) to on-lend to the private sector; (ii) Technical assistance to PFIs; (iii) Partial Credit Guarantee (PCG).
The objective of the Project is to support the establishment of a financially sustainable development bank to increase access to finance, in particular long-term finance, for viable MSMEs and small corporates in Ghana.
The immediate direct beneficiary is the Republic of Ghana which will use the resources of the Grant to further capitalise the DBG. However, MSMEs and small corporates in agribusiness, manufacturing, information and communication technology (ICT) and high-value services will be the immediate indirect beneficiaries.
African Development Fund
Development Bank of Ghana (DBG)
|Last Update||16 May 2022|
|Name||SEKIOUA Sofiane Hicham|