Development Bank Ghana (DBG) has reaffirmed its commitment to responsible and sustainable lending practices as it seeks to position itself as the best institution for attracting development finance funding into the country. The bank has also launched the DBG Green Climate Investment Programme to provide financing solutions for green and climate-resilient projects, which will contribute to the country’s efforts to combat climate change. Mr Kwamina Duker, CEO of DBG, made the announcement at an event organised with the Ghana Association of Banks, where he highlighted the bank’s ongoing efforts to strengthen partnerships with PFIs and promote sustainable development in Ghana.
DBG seeks to expand PFI network and boost economy
Duker also stated that DBG is working to bring more commercial banks onboard to invest in the local economy. By partnering with additional commercial banks, the bank hopes to expand investments and opportunities for the agriculture and manufacturing sector, ultimately boosting the country’s economy. As part of this strategy, the bank is expanding its PFI network and hopes to have at least 10 PFIs by the end of the year. It has recently completed due diligence and is on course to bring on board Ecobank and Absa as new PFIs this month.
DBG’s success in SME lending
DBG has already made significant strides in supporting small-medium enterprises (SMEs), with an amount of GH₵600 million disbursed to SMEs this year alone. The bank is well-equipped to provide additional loans to back sustainable projects as they are presented, demonstrating its unwavering dedication to growing with its partners. It will focus on sectors with high growth potential and significant social and environmental impact, such as agribusiness, manufacturing, and low-carbon and climate-resilient investments.
Challenges ahead for DBG
Despite its achievements, DBG faces challenges in the form of macroeconomic uncertainty, high inflation, currency depreciation, and fiscal constraints. This has led to a cautious approach to lending and affected the ability of SMEs to access credit and plan for growth. Another challenge is the limited capacity of banks to assess and manage SME risks, particularly in sectors like agriculture and manufacturing, resulting in a lower appetite for lending to these segments and affecting DBG’s ability to achieve its lending targets.
In a nutshell, DBG is committed to responsible and sustainable lending practices and green climate investment in Ghana. The bank seeks to expand its PFI network, bring more commercial banks onboard, and support SMEs in sectors with high growth potential and significant social and environmental impact. Despite facing challenges, the bank remains dedicated to growing with its partners and supporting sustainable projects in the country.