(Ecofin Agency) - A few years ago, Ghana launched the development of some key infrastructures in the framework of its industrialization program. With the support of its international partners, it just created its national development bank, which will help restructure key sectors.
Ghana recently launched its national development bank. According to an official release, the development bank was inaugurated last Tuesday. It started operations with about US$750 million in seed capital.
The initiative is the result of cooperation between Ghana and international partners. The European Union contributed US$177.9 million against US$225 million by the World Bank and US$40 million by the African Development Bank. The Ghanaian government also contributed US$250 million and Germany’s KfW made technical commitments.
Called Development Bank Ghana, it is intended to "make long-term financing available to the private sector," and to "develop the ecosystem for market access, technology, and innovation." Its ultimate goal is "to help restructure key sectors of the economy over some time by supporting all the institutions that are critical to the transformation of SMEs.”
The bank will notably support the transformation of manufacturing, agriculture (especially off-farm value chain activities), ICT and related services, tourism, and the mortgage and housing market.
According to Ghanaian Head of State Nana Akufo-Addo, Development Bank Ghana will help all the banks operating in the national territory access long-term financing. It will also help private equity fund managers and capital market operators access the local bond market and facilitate equity financing for SMEs.
The development bank is part of local authorities' plan to industrialize the economy. It is launched about a month after the inauguration of the 107th factory of the "One District One Factory" initiative, which aims to accelerate this industrialization. In addition, the country is engaged in a partnership with the World Bank that will provide US$4.5 billion over the next five years to support development.
A week ago, the government announced it had invested US$131.6 million to boost technical and vocational education and training. One of the main objectives of this investment is to provide the country with a sufficiently skilled workforce to implement its industrialization program.