World Bank Board approves $250m for establishment of Development Bank of Ghana

The World Bank has announced the approval by its Executive Board of $250 million from the International Development Association (IDA) to support the establishment the Development Bank of Ghana (DBG).

In a press release copied to ghanabusinessnews.com, The World Bank says the goal for establishing the DBG is to increase access to long term finance and boost job creation for 10,000 enterprises in sectors including agribusinesses, manufacturing and high value services.

According to the Bank, the DBG will additionally finance multiple interventions to attract private sector financing for credit constrained MSMEs and small companies based in Ghana.

“These interventions will include the establishment of a Partial Credit Guarantee facility and a digital financing platform to leverage private sector financing by making it more efficient and less risky for private financiers to lend to MSMEs,” Carlos Vicente, World Bank Senior Financial Sector Economist said.

Commenting, the World Bank Country Director for Ghana, Sierra Leone and Liberia, Pierre Laporte said, “By offering long-term wholesale financing, credit guarantees, and other services, the Ghana Development Finance project will help increase overall lending to priority sectors and market segments. The project is aligned with government priorities outlined in the Coordinated Programme of economic and Social Development Policies and is an integral part of the World Bank Group’s efforts to promote sustainable growth in Ghana.”