Sampson Akligoh
DIRECTOR OF the Financial Sector Division at the Ministry of Finance, Sampson Akligoh, has disclosed that several competent measures have been put in place to ensure the success and independence of the yet-to-be formed Development Bank Ghana (DBG).
According to Mr. Akligoh, the government has learned its lessons from the failures of previous development banks and is striving to ensure that the new development bank becomes credible and free from political interference as well as manipulation.
He said a lot of consultations have been held with the World Bank and other stakeholders to ensure that the new wholesale bank, billed to start operations in July 2021, stays true to its core mandate.
“We have actually taken our time to make sure that the government checks the processes leading to the formation of this bank so that we have a credible institution that is independent and has the adequate human resources that can do things differently from the past.
“This includes the appointment of independent boards and the Act that will establish it, which has been registered with the Registrar-General,” Mr. Akligoh made the comments during the first-ever public forum on the Development Bank on Thursday, June 17.
He assured that the new Development Bank will be a non-deposit-taking wholesale bank, and that the bank will neither give retail nor direct business loans but rather focus on agribusiness, with a focus on off-farm value-chain activities and support ICT, software, and allied services, including Business-Process Outsourcing, and tourism.
The bank will provide funds to existing commercial banks, and other qualifying financial institutions, to provide long-term lending and other innovative products that are presently lacking in the system.
Meanwhile, Chief Executive Officer of Sleek Garments Export Limited, Nora Bannerman-Abbott, who was a panelist on the forum, has lauded the government’s decision to establish the National Development Bank.
According to her, the bank will boost the capacity of small, medium and even large businesses in Ghana and help them to acquire long-term financing to help them expand their infrastructure.
“All the banks are currently operating as universal banks and not only that, they charge such high commercial lending rates of between 25% and 33%, and so it is no wonder that so many business owners end up being scammed by ponzi schemes,” she said.
Banking and Corporate Governance Consultant, Richmond Atuahene, in his presentation, called for a national agenda that will encourage consensus building on the creation of viable strategies for economic growth.
The forum, organised by Impact Investing Ghana, in partnership with Citi TV, was under the theme “What is the Role of the Development Bank in Ghana’s Economic Transformation?”
A Business Desk Report