DBG rolls out GH¢500m package to bolster agric, economy

Development Bank Ghana (DBG) is rolling out a GH¢500 million package to support Ghana’s agricultural ecosystem this year.

This is to strengthen and support small and medium-sized enterprises (SMEs) in the agriculture value chain, and consequently rejuvenate the economy by improving food security, enhancing productivity and creating employment opportunities.

The Chief Executive Officer (CEO) of DBG, Dr Randolph Nsor-Ambala, who made the revelation at the Kwahu Business Forum in Mpraeso, Kwahu, last Saturday, explained that the development finance institution would roll out GH¢500 million to support SMEs in the agriculture value chain to unlock growth potential and ensure sustainable development, right from input suppliers and farmers to processors and distributors.

The forum was on the theme: “The Future of Business: The Role of the Financial Sector” and formed part of the government’s vision of building a more resilient and inclusive economy through SME empowerment.

It had President John Dramani Mahama as its most prominent guest.

It also brought together various business owners, industrialists, investors, start-ups and various financial institutions, including banks and captains of industry, to engage stakeholders, discuss policy interventions and explore strategies to enhance Ghana’s business landscape.

The DBG approach, according to Dr Nsor-Ambala, was focused on sustainable transformation rather than isolated interventions, ensuring that capital would flow to where it could have the greatest impact on economic development.

Over the past years, DBG has provided GH¢1.62 billion in loans to over 650 businesses, with tenures up to 15 years.

These investments are projected to generate over 18,000 direct jobs across the country.

DBG currently has active portfolios in 13 regions, and projects to cover all of Ghana’s 16 regions by the close of this year.

Commitment

Dr Nsor-Ambala stated that “what we exist to do is to provide a comprehensive set of support for businesses.

Most people would know us for affordable long-term loans but beyond that, we do a lot more.

As we speak, we are working with our partner financial institutions to get them to be able to understand the agriculture sector to evaluate it properly.

The default position for most financial institutions is to see any such business case as risky and dangerous to invest in”. 

“Through the technical assistance programmes we provide, first to the businesses themselves and secondly to the financial institutions with whom we work, we have been able to build capacities within the financial institutions for them to understand especially the agriculture sector to be able to value it properly.

“Related to that, we are working with our development partners around putting in place mechanisms for partial guarantee for the agriculture sector, as well as an agric-insurance programme that will further reduce the risk associated with the sector,” he added.

He said that the support was also in alignment with the government’s broader economic recovery agenda, which included broadening access to affordable financing for local businesses and offering targeted support to SMEs through tailored financial solutions and technical assistance.

“DBG is about inclusive opportunity; that is, creating jobs for our youth, building sustainable businesses and positioning Ghana as a competitive force in African and global markets,” he said.

Credentials

DBG is a wholesale financial institution established by the Government of Ghana.

Since its inception three years ago, the bank has facilitated significant disbursements through participating financial institutions, and unlocking projects and value chains to empower several businesses across agribusiness, manufacturing, ICT, and high-value services.