(From left) Steve Kpordzih, CEO of The Construction Banka and Dr Asare Akuffo join Vice President Dr Bawumia, Dr Mathew Opoku Prempeh, Minister of Education and Ms Frema Osei Opare, Deputy Minister for Works & Housing, shortly after the bank’s corporate brand had been unveiled.
Vice President Dr Mahamudu Bawumia on Wednesday officially launched The Construction Bank, Ghana’s 34th full-fledged bank, at a colourful ceremony in the Octagon, Accra’s ultra-modern commercial apartment.
The wholly Ghanaian owned bank, according to Dr Asare Akuffo, the board chairman, would provide banking services in project finance, with specialty in construction, infrastructure and mortgage financing.
Vice President Dr Bawumia, in his keynote address, gave assurance that government was ready to support The Construction Bank to succeed.
Prompt Payments
He also said government would do this by protecting the construction industry and ensuring prompt payments for completed projects by investors for and on behalf of the government.
“What we have done is that in the context of the Public Financial Management Act, we are going to implement very strictly the GIFMIS (Ghana Integrated Financial Management Information System) to make sure (state agencies) are only awarding contracts if there is money to pay for those contracts. This is quite a departure from how things have been done previously,” he averred.
Key projects
The vice president additionally indicated that government would undertake certain three key projects to support the banking sector and formalize the economy.
These include a National ID system, national digital addressing system and a strong interoperable payment system.
“We will do our part as government, and we will in return hold you to your promises the same way as you hold us to ours, and together can create partnerships that will see this country work once again,” he told managers of the new bank.
Advice
Dr Bawumia advised the bank’s board and shareholders to guard against circumstances that led to the folding up of the Bank for Housing and Construction (BHC) and make it the most trusted bank of choice in the areas of affordable mortgage financing and infrastructural development in Ghana.
Bank’s Vision
Dr Asare Akuffo, in an address, said successive governments over the years had expressed the desire to close the housing and infrastructure deficit, but said that could not fully be attained without partnership among key players and the needed financial backbone.
“The driving force behind this vision is anchored on our values of open-mindedness, boldness and visionary leadership and these are the principles that will inform the decisions we take and how we collaborate with our clients to contribute our quota to Ghana’s changing business landscape and skyline.
“Our vision is clearly to be the bank of choice for construction and infrastructure development financing with our name synonymous with innovation, technology, quality customer care and affordability,” Dr Asare Akuffo maintained.
Mentioning expertise, technology, innovation and a new skyline as the pillars to support the attainment of its vision, Dr Akuffo said, “The Construction Bank will operate with corresponding colours of yellow, blue and green.”
BoG’s Congratulatory Message
Millison Narh, First Deputy Governor, Bank of Ghana, in a remark, said Ghana has a huge housing deficit that needs proportionate financing response from the financial sector.
He urged the new bank to take steps to make gains in the housing industry.
“Considering the critical role of the construction sector in supporting infrastructural development, there is a need to initiate action towards reversing the trend in the industrial sector of the economy,” he underscored.
He said available data suggested that the growth rate in the construction subsector declined by 3.5 percent in 2016 and expressed the belief that The Construction Bank would do well to give all its clients and customers memorable treats.
Bank’s Objective
The bank promises to provide funding and transactional banking services to customers in construction and also assist organisations and individuals to acquire homes and commercial properties.
Under trade financing, it will provide consumer loans and credit facilities with short-term maturity profiles with regular weekly, fortnightly and monthly installment options.
It would provide micro leasing and hire purchase financing, including vehicle project finance and import clearance.
BY Samuel Boadi